Reserve set by the court

Discussion in 'The Buying/Selling Process' started by jackbak, 12th Feb, 2013.

  1. jackbak

    jackbak Member

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    Hi all, got a bit of an odd situation here...

    I’m pretty keen on bidding on a property that is going to auction and I think there is a pretty good chance that the bidding won’t meet the reserve as there are numerous defects with the property. The issue is that it is being sold because of a "messy divorce" and the reserve price has been set by the court. What happens if I’m the final bidder and the bidding has not reached the reserve, am I able to go in and negotiate with the vendors or will it have to go back to the court to make a new order?

    Thanks!
     
  2. Propertunity

    Propertunity Real Estate Buyers Agent

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    Not 'odd' really. This happens all the time (unfortunately):(

    If it fails to reach reserve and gets passed in, you will be negotiating with the court appointed liaison officer (since the vendors are probably hostile and can't agree).
     
  3. jackbak

    jackbak Member

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    Thanks Propertunity, so I am assuming that would happen in the following week after the auction, not on the day of the auction?
     
  4. Propertunity

    Propertunity Real Estate Buyers Agent

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    No, not necessarily. Talk to the agent handling the auction / auctioneer - as he will probably be on the phone to the officer of the court during the auction. Best to negotiate on the day of the auction, while the pressure is on, IMO.
     
  5. vaughan

    vaughan Member

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    People don't look for defects and happily over-pay. Ms Ali knows what I mean. :)

    If it gets turned in at auction it'll be because the vendor's expectations are too high.
     
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  6. MsAli

    MsAli www.propertytwins.com.au

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    Omg, you remember?! Glad I wasn't the one who bought that place. But I reckon it was still cheap given the area is improving and every other house on the street has been much higher in asking / selling prices :)
     
  7. DaveM

    DaveM KFC Buyers Agent

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    Which place was this?
     
  8. MsAli

    MsAli www.propertytwins.com.au

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    It was Kurama Crecent, Whalan. Fail to recall the # - 28 or 21? Was a clad home. MIP auction.
     
  9. Peter 14.7

    Peter 14.7 Wannabee Farmer

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    +1 just like a mortgagee in possession, in that case usually the mortgage insurer makes the call.

    Peter