Sydney - pre Christmas - still hot - 200k over reserve

[see_change]

My parents house went for auction today .

Roseville , 25 year old , three bedroom , 2 baths double garage , walk station . Good condition , neat clean and tidy but a cosmetic renovation wouldn't be out of order.

For the last few years they'd been told it was worth around 1.3 .

After looking at the market , they thought it was worth around 1.4 . Had two agents around . One said 1.3 to 1.5 , other said 1.5 -1.6 . His partner thought 1.5 was more like it . They would have sold at 1.4 but officially the reserve was 1.5

Went on market last weekend and had multiple contracts and offers on the first day so went to auction today . Mainly Chinese people interested.

Took about 3-4 mins to drag the first offer out but kept on going all the way to 1.701.

One side light was the sewerage diagram . The only one they could find related to the previous house on the block . Because it was an auction thy could put in a clause saying they didn't have it and basically " buyer beware " . Apparently the responsibility for sewerage diagrams has changed recently in NSW and currently it can be a painful wait getting a new one . This caused my dad an anxious couple of days trying to find it .....At the auction one potential buyer raised this as an issue and said they'd been told by their solicitor that if they bought the house , they'd need a new solicitor ...personally I think this was a move to try and spook other buyers but it didn't work . Some people who had expressed interest didn't bid , but I think it just went too high for them .

Two very happy parents .

From this sample of one , in a hot market , pre Christmas seems a good time to sell . If you're desperate , you'll still be looking

Cliff

 

[china]

Two very happy parents .



Cliff

And a very happy son.

 

[see_change]

And a very happy son.

Relieved would be a better way to describe it ....

Cliff

 

[Richard Feynman]

You have over 300,000 reasons to be relieved

 

[charlieandkath]

2nd agent was more on the ball

 

[MsAli]

Actually, had an opposite experience today. At the first auction we went to, only 1 bid of $650k and then vendor bid of 700k - clearly unrealistic and it was passed in. This was in Pendle Hill - 4br brick home. The issue was one of a proposed drainage easement. The auction was over in 5 minutes..

The second was 2 x houses on 1050sqm lot in Girraween. Sold for $870k. I think that was really cheap where in Girraween prices are touching 1mill for big lots such as this. The bids were slow and the auction took over 30 min with may be 4 odd bidders? The new owner did well in my view where one of the houses could be rented for say $450p.w. and leave then a mortgage of 420k. Downside: I don't think they can subdivide; Not sure if there was a fire wall as the two houses were connected.

 

[MsAli]

One side light was the sewerage diagram . The only one they could find related to the previous house on the block . Because it was an auction thy could put in a clause saying they didn't have it and basically " buyer beware " . Apparently the responsibility for sewerage diagrams has changed recently in NSW and currently it can be a painful wait getting a new one . This caused my dad an anxious couple of days trying to find it .....At the auction one potential buyer raised this as an issue and said they'd been told by their solicitor that if they bought the house , they'd need a new solicitor ...personally I think this was a move to try and spook other buyers but it didn't work . Some people who had expressed interest didn't bid , but I think it just went too high for them .
Cliff

Congrats Cliff.

Funny you raise this. The auction we went to at Pendle Hill today, we weren't going to bid. After the auctioneer had gone through the terms and the house (general stuff they go thru), I asked the auctioneer "what are the implications of the proposed drainage easement and when does it take effect?" To which he said I had to ask my conveyancer. This left the listing agent very angry. She actually said quite loud and clear (although was meters away from me) - "Why did she have to ask that?" and nodded her head in disbelief AND kept staring at me with an angry eye contact. Well I'm not scared of eye contact and I didn't let my eyes move away either! Clearly the turn out wasn't good - may be due to this easement issue. And I know may be I kinda ruined her chances of having it sold for 700k (asking 720k-780k range on the advertisment). And I felt BAD afterwards, but isn't that a valid question to ask at an auction? Agents play all sorts of games especially I've seen this particular agency do that (very well known agency)...

As I mentioned before, there was only ONE bid and that was 50k below reserve. Both the agent and the auctioneer knew it was going to not sell at that reserve. The property costs the vendors nothing to hold, so I'm not surprised.

 

[see_change]

Congrats Cliff.

Funny you raise this. The auction we went to at Pendle Hill today, we weren't going to bid. After the auctioneer had gone through the terms and the house (general stuff they go thru), I asked the auctioneer "what are the implications of the proposed drainage easement and when does it take effect?" To which he said I had to ask my conveyancer. This left the listing agent very angry. She actually said quite loud and clear (although was meters away from me) - "Why did she have to ask that?" and nodded her head in disbelief AND kept staring at me with an angry eye contact. Well I'm not scared of eye contact and I didn't let my eyes move away either! Clearly the turn out wasn't good - may be due to this easement issue. And I know may be I kinda ruined her chances of having it sold for 700k (asking 720k-780k range on the advertisment). And I felt BAD afterwards, but isn't that a valid question to ask at an auction? Agents play all sorts of games especially I've seen this particular agency do that (very well known agency)...

As I mentioned before, there was only ONE bid and that was 50k below reserve. Both the agent and the auctioneer knew it was going to not sell at that reserve. The property costs the vendors nothing to hold, so I'm not surprised.

I was wondering how to respond to questions like that and my thoughts are the agents need to make a more comprehensive statement , otherwise it sounds as though they're hiding something.

Cliff

 

[misakimen]

I think the only thing they are trying to hide is their lack of knowledge. The real estate industry is full of commission driven idiots.

I was wondering how to respond to questions like that and my thoughts are the agents need to make a more comprehensive statement , otherwise it sounds as though they're hiding something.

Cliff

 

[Mindmaster]

Went on market last weekend and had multiple contracts and offers on the first day so went to auction today . Mainly Chinese people interested.

Do you mean overseas investors or local Australian Chinese? I'm assuming locals due to the restrictions on foreigners buying property?

 

[vaughan]

... I asked the auctioneer "what are the implications of the proposed drainage easement and when does it take effect?" To which he said I had to ask my conveyancer. This left the listing agent very angry. ... And I know may be I kinda ruined her chances of having it sold for 700k (asking 720k-780k range on the advertisment). And I felt BAD afterwards, but isn't that a valid question to ask at an auction?

I've done something like this myself, and felt similarly afterwards. The conclusion I came to was that my asking the question at the auction, as I did openly, was to be a "spoiler". I could have just as easily asked somebody in private earlier and probably got a better answer.

If people haven't done their DD then they really need to learn their lesson.

I don't think the agents need to have answers to this. Everything the vendor NEEDs to disclose is in the contract of sale. Anything else is due diligence for the buyer to perform.

 

[andrew_de_a]

I hope someone does that to a house you're selling at auction msali

 

[TMNT]

We'll if the auctioneer was trying to hide something thay was paramount to the purchase price then I'. Hope that he gets caught out and I'd even go a step furthe. And say
"Is it true that this Property has an easement down the back making it impossible to subdivide thus seriously devaluing the land PLUS is it true that your wife had an aaffair with your brother whilst you were having an affair with a gay man in the red light district"

 

[monalisa]

I hope someone does that to a house you're selling at auction msali

Why are you feeling so upset????

 

[cu@thetop]

I hope someone does that to a house you're selling at auction msali

I can't understand the problem and I'm with MsAli on this. Boo hoo for agents who can't get their act together and vendors trying to sell something without full disclosure.
Loud vocal comments to throw off potential buyers is the risk a seller takes going to auction. A good agent would have had a well prepared answer to both address and gloss over the issue.

 

[MsAli]

I hope someone does that to a house you're selling at auction msali

Seems you've been burnt before due to a lack of disclosure on your part.

Auctioneers go on about how great a property is prior to the auction, well they might as well add what still needs to be disclosed.

 

[DaveM]

I hope someone does that to a house you're selling at auction msali

So its fine for agents to lie through their teeth to sellers, but its poor form for buyers to point out truths to a sales agent? Really?

 

[andrew_de_a]

So its fine for agents to lie through their teeth to sellers, but its poor form for buyers to point out truths to a sales agent? Really?

How did the agent lie to mrsali???

 

[andrew_de_a]

Seems you've been burnt before due to a lack of disclosure on your part.

Auctioneers go on about how great a property is prior to the auction, well they might as well add what still needs to be disclosed.

I would have thought that if you're buying the house the information you require would be in the required documentation and that you wouldn't rely on the agent for your due diligence. Last time I checked the agent represents the seller not the purchaser. If the agent lied to you then I agree with you however if you did it to be mischievous then I certainly don't.

Did you ask the agent during the course of the campaign about an easement?

...And I'll all due respect, a lot houses in Melbourne have easements on them and the agent certainly doesn't tell the buyer about them, it's clearly stipulated on the title diagram.

 

[andrew_de_a]

Also why would you ask the question during the auction if you weren't intending on bidding???