Public Trustee - Brisbane Auction

[gach2]

Just wondering if anyone has bought or looked into buying through the public trustee - brisbane at auction?

Just wondering how picky they are on reserves?

Seems as if the market isnt hot in parts of Brisbane (especially on properties that are unconditional sale and requiring work)

Did go recently see an auction (mortgagee) where there were only 2 parties interested and the property got passed in 30k below reserve (according to what the agent said on the day. Property was advertised later for 50k above the price (probably only sold for 20-30k over what it got passed in but im sure there would have been hassle and it would have been a conditional sale at that price)

 

[Truly Exotic]

they are quite rigid,
if they have a reserve price, often even if its $5k below, they wont take it,

after auction, they usually advertise a lot higher, however, they eventually do sell it a long way down the track, unfortuantely, ive never negotiated past a week or so, as its quite tiresome

 

[gach2]

Was more wondering if there reserves are realistic/unrealistic (would there be a discount for unconditional on the day sale?)

Seemed the mortgagee auction i went there didnt seem to be one ( reserve price seemed to be around or 5-10k over the market price and what they sold on conditional contract) and they wanted the sale unconditional and on the day (which isnt the case for market)

 

[willair]

Was more wondering if there reserves are realistic/unrealistic (would there be a discount for unconditional on the day sale?)

Seemed the mortgagee auction i went there didnt seem to be one ( reserve price seemed to be around or 5-10k over the market price and what they sold on conditional contract) and they wanted the sale unconditional and on the day (which isnt the case for market)

Just read the contract,if you hand is still in the air when the reserves are in their sales level then you will own it on the day,i have been to few lately and all sell on the day or within 28 days in Brisbane..imho..

 

[wylie]

We bought our PPOR this way. Room full of people and I think hardly any bids. We tried to buy an IP same day. I think those where the only two that sold on the day from memory.

We were about one third of the way through, say number 5 of twelve houses auctioned that day. We were highest bidder and had right to meet reserve before the last house was auctioned that day. Reserve was $230K, passed in to us at under $200K.

We had two choices (maybe things have changed these days) -

1. Meet reserve before the last house was auctioned; or

2. Put in a contract for less and wait until the vendor charity had a board meeting later in the week. Had it been a private vendor and not a charity, we could possibly have haggled there and then. But not the charity. If we did buy at the reserve that day, anybody else there that day could meet the reserve immediately after the last house was sold. We had less than an hour to make our decision. We knew there were people in the room who we'd seen at the open houses, were fairly sure it would be sold that day, so we met reserve.

Reserve was probably fair price at the time. It wasn't overpriced, but not a steal either. It was fair.

 

[Propertunity]

Reserve was probably fair price at the time. It wasn't overpriced, but not a steal either. It was fair.

In my experience, they generally use a registered valuer to value the property as a means to set the reserve price for the auction. Hence their reluctance to drop the price on auction day, as they are often the attorney acting for the vendor in their state of incapacity or for the beneficiaries in the case of a deceased estate....and they need to not only do, but be seen to be doing, the right thing.

 

[gach2]

Thanks propetunity

I wonder if the valuer factors in terms of sale when they do it.

 

[Scott No Mates]

In my experience, they generally use a registered valuer to value the property as a means to set the reserve price for the auction.

Having sold off plenty of government property over the years we were required to get a valuation prior to setting the reserve, call eoi's from agents and get their opinions etc before taking them to auction.

We wouldn't disclose the reserve to the auctioneer so the result would be referred to us as vendor.

If the property didn't sell then we'd leave it with the agent to complete.

 

[Propertunity]

Thanks Propertunity. I wonder if the valuer factors in terms of sale when they do it.

I'd be surprised if the valuer did not take this into account. We, as Buyers Agents have to take 7 major things into account when coming up with an estimated selling price, the 6th of which is:
6. Special conditions
1. The sale may be subject to particular circumstances, such as:
a. Extended or reduced period for settlement.
b. Subject to a tenancy, therefore vacant possession not offered.
c. Lease back of premises for the vendor.
d. Release of deposit on exchange.
e. Other

 

[gach2]

I guess well see how it goes on the day

I meant special condition being that the sale is an auction with cooling off period, b&p and finance clause.

Suprisingly the public trustee is the agent as well (unless there advertising for another agent)

 

[Scott No Mates]

I guess well see how it goes on the day

I meant special condition being that the sale is an auction with cooling off period, b&p and finance clause.

Suprisingly the public trustee is the agent as well (unless there advertising for another agent)

If it's an auction there is no cooling off period, no special conditions of the purchaser, no p&b or finance clause - you are expected to have completed all of your due diligence & sign a S66w.

 

[gach2]

I get that, ive bought in sydney at auction although theres no issue in sydney at the moment as banks/trustee are happy with whatever prices (barely see a property not meet reserve - unless private owners are unrealistic)

 

[fernfurn]

They want reserve so even if you offer $5k less with cash, they will take the reserve price even with a 90 day settlement period

 

[kvellimalai]

Just wondering if anyone has bought or looked into buying through the public trustee - brisbane at auction?

Just wondering how picky they are on reserves?

Seems as if the market isnt hot in parts of Brisbane (especially on properties that are unconditional sale and requiring work)

Did go recently see an auction (mortgagee) where there were only 2 parties interested and the property got passed in 30k below reserve (according to what the agent said on the day. Property was advertised later for 50k above the price (probably only sold for 20-30k over what it got passed in but im sure there would have been hassle and it would have been a conditional sale at that price)

Hi Gach2,
would you mind sharing the suburb?

velli