Public Trustee sales

[WebBoard]

From: Fiona H


Another question for you all,

I looked at a property recently that I liked that was going to auction under instructions from the public trustee (deceased estate).

The agent said whilst you could put in offers, the trustee would most likely take it to auction anyway.

Has anyone else had any experience with this (I dont like auctions! how can I get a good price with all that testosterone around?)

cheers
Fiona

 

[Robert]

Reply: 1
From: Robert Forward


Hi Fiona

The Agent is correct with what he was saying, the laws are different for properties sold via the public trustee. Unlike what the common thoughts are properties sold through the public trustees are not usually under market value, more often then not, they are sold above the market value as they will be older properties in good areas that the deceased have lived in for years and the area is now trendy.

Hope this helps a bit. Also there is heaps in the archives about the public trustee sales.

Cheers,
Robert

Property Inspection Reports @
http://www.creativefinance.com.au

The Sydney "Freestylers" Group Leader.

 

[gailh]

Reply: 1.1
From: Gail H


Hi,

I agree with Robert, but I just wanted to add that Auctions can favour buyers when the market is not buoyant (especially if vendor has to sell). This is because there may be a buyer amongst the bidders who would have been prepared to pay more, but who will get it below his/her limit because there aren't any other bidders there who will go as high. This is one of the reasons why private treaty is generally used in less popular places.

But even in places like Melbourne, you can get great bargains at auctions when the market is in a slump. I bought my PPOR at auction in Melb two and a half years ago for a price well under value because only one other bidder turned up and the vendor had committed elsewhere so abandoned the reserve.

So, the auction method favours the sellers now, but just wait a while....

Gail

 

[WebBoard]

Reply: 1.1.1
From: Mark Pardi


Myself and my associates have been involved in a lot of Public Trustee sales in Sydney.


Of all the ones we have been involved in

They always go to auction

They always gave us the reserves in a sealed envelope with a guarantee that the envelope must not be opened until the day of the auction....and they inspected it.

Pre auction offers only get used to establish the selling price or up the "expectations" The trustee is not an emotional vendor.....so no fire sales, quick sales, or pre auction sales....in all they are commercially minded.

Often the reserves are very realistic by the way.

So if you like the property go to auction and have a go......you never know. Just don't go above your limit.

mark