Recent Brisbane Auctions

[Old Mate]

Hey all

I went to two auctions last weekend both of which were passed in with no bids apart from the vendor's. Today I went to another auction at which no one even registered so it was called off. I went to these auctions to get some experience because I had never been to one before and I didn't end up learning anything.

So I'm wondering whats happened at auctions that others have been to recently. Have they been as dead as the ones I went to?

 

[boomtown]

The only auction I have been to lately was a public trustee one in Camp Hill. It attracted alot of interest - about 35 people and 6 bidders.

It was passed in but the high bidder negotiated a contract. I suspect it went for marginally under market - maybe $10k under market. Not a particularly brilliant deal frankly but a good outcome for the vendors.

 

[BKR]

I wanted to go to an auction around the corner, Boondall, due in 2 weeks but it suddenly had a sold sign on it. Bummer as I wanted to walk thru it and see how the auction went but now I'll never know.
I'll phone the RE later and find out the price but it still doesn't tell me the amount of ppl interested in it and what had been done inside but there will always be more so stick with it.

 

[Perp]

I went to these auctions to get some experience because I had never been to one before and I didn't end up learning anything.

I think you've learnt something very valuable; that is that auctions SUCK as a way to sell your property!!!! Unless you have a unique property in a very hot market, and a plethora of cashed-up buyers, I think you'd be mad to try and sell by auction, especially in Brisbane. There's more of an "auction culture" in Sydney and Melbourne, but in my experience, Brisbane buyers really don't go for auctions.

 

[ianvestor]

Hey all

I went to two auctions last weekend both of which were passed in with no bids apart from the vendor's. Today I went to another auction at which no one even registered so it was called off. I went to these auctions to get some experience because I had never been to one before and I didn't end up learning anything.

So I'm wondering whats happened at auctions that others have been to recently. Have they been as dead as the ones I went to?

Yes, the 4 most recent auctions I've been to (in the last few weeks) have been just as dead. Very amusing.

 

[buzzlightyear]

It is an indictment of the REA's who have chosen this method to sell these properties given the state of the market.

Unlike many on this site, I believe auctions are a good way to sell your property, but the state of the market means that significantly numbers of properties will be suitable to sell through this method.

 

[NedKelly]

I have been to about 7 auctions loacally in the last 3 years and not one property has been sold. I was amazed at one auction when there was only one opening bid from the crowd, the auctioneer then stuck in a vendors bid and the person that originally bid wouldn't make a higher bid. Then the auctioneer started to have a go at the bidder saying that she hadn't bid enough, this was in front of everyone. The auctioneer was upset at the bidder and started to raise his voice at her saying she must put in a higher bid. She just walked out. Amazing.

 

[AnneDe]

I attended an auction in Beenleigh approx 4 weeks ago, where a deceased estate on a larger that usual block of land was up for auction. Property sold for $380.000 with 2 serious bidders in front of 20+ crowd (9 with numbered paddle sticks). Auctioneer did pause twice to seek instructions from vendors after bidding slowed and then stalled. See link below for property details:

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=37143702&s=qld&tm=1214098261

Cheers,
AnneDe

 

[HiredGoon]

The only auction I have been to lately was a public trustee one in Camp Hill. It attracted alot of interest - about 35 people and 6 bidders.

It was passed in but the high bidder negotiated a contract. I suspect it went for marginally under market - maybe $10k under market. Not a particularly brilliant deal frankly but a good outcome for the vendors.

I'd have thought market rate would have been just higher than the 2nd highest bid.

If the highest bidder bought it for more than it reached in a fair and open auction then they paid over market, not under.

The problem comes from you not acknowledging the market has fallen.

 

[wylie]

Wouldn't boomtown have a better idea of "market value" seeing he actually went to the auction, and he actually lives nearby and no doubt knows the market here?????

 

[HiredGoon]

No, the best determinant of market value is the market.

 

[Perp]

No, the best determinant of market value is the market.

The problem is that auctions don't tap into anything but a very small portion of "the market". Most people I know won't buy at auction. Philosophically I agree that the price agreed by a willing buyer and willing seller is the market value, but I don't believe that's the usual outcome of an auction.

 

[Mike&Wendy]

The problem is that auctions don't tap into anything but a very small portion of "the market". Most people I know won't buy at auction. Philosophically I agree that the price agreed by a willing buyer and willing seller is the market value, but I don't believe that's the usual outcome of an auction.

Do you believe prices are higher or lower at auction?

Mike.

 

[Perp]

Do you believe prices are higher or lower at auction?

Lower, except in very specific circumstances, eg some luxury properties that are unique and have high buyer demand.

 

[wylie]

I have bought at auction. I look at auctions as a means of getting something at a "bargain price".

My parents have paid more than they wanted to at auction because of three serious bidders taking the price higher than they hoped for. Did they pay market value? Who really knows. There were certainly two others prepared to pay that price.

Doesn't matter anyway, because it is their PPOR and they love it. Just so happens it has increased considerably with the recent Brisbane boom but even if it hadn't, they wouldn't be worried as they will not move from there.

I certainly believe a "unique" property can get a premium at auction, but "unique" properties are not common.

 

[boomtown]

I'd have thought market rate would have been just higher than the 2nd highest bid.

If the highest bidder bought it for more than it reached in a fair and open auction then they paid over market, not under.

The problem comes from you not acknowledging the market has fallen.

If you read my post more carefully you would have noticed that it was passed in at the fair and open auction. If something doesnt sell - the offer price is not market value because you cant have a market without a vendor. Its just a market failure.

 

[Smitho]

I went to an Auction at this house in Albion on Saturday http://www.realestate.com.au/cgi-bi...r=&cc=&c=97157990&s=qld&snf=rbs&tm=1214136727
71 Mclennan st if link doesnt work
Owners purchased two years ago for $540k which appears to be the highest price paid in the street

4 bidders took the price from open of 500k to 782k when it was declared on the market eventually selling for $790k

 

[boomtown]

I went to an Auction at this house in Albion on Saturday http://www.realestate.com.au/cgi-bi...r=&cc=&c=97157990&s=qld&snf=rbs&tm=1214136727
71 Mclennan st if link doesnt work
Owners purchased two years ago for $540k which appears to be the highest price paid in the street

4 bidders took the price from open of 500k to 782k when it was declared on the market eventually selling for $790k

Hmm seems pretty good to me (although I dont know the area). Those views are impressive and its 2km? from the CBD. I think Albion has traditionally had a bad name though?

 

[Andrew_A]

I went to an Auction at this house in Albion on Saturday http://www.realestate.com.au/cgi-bi...r=&cc=&c=97157990&s=qld&snf=rbs&tm=1214136727
71 Mclennan st if link doesnt work
Owners purchased two years ago for $540k which appears to be the highest price paid in the street

4 bidders took the price from open of 500k to 782k when it was declared on the market eventually selling for $790k

Maybe there was some reno work thrown in with that price?

Have to be careful driving through Albion on Sandgate Rd, plenty of stupid driving seems to happen around that area.

Looks like a cracker of a house for under a M. I don't quite get Brisbane sometimes, in Bardon even a shack on a decent piece of dirt goes for 1M+ and you can get stuff on the N side like this for 790k. I guess Albion really hasn't got the blue chip reputation yet.