What does it mean if switch from listing to auction?
- Thread starter Lilith
- Start date
It could be a situation where the seller had so many interested buyers, that they think they may have undervalued the property, and think they may get a better price at auction ?
That's one uneducated view
That's one uneducated view
Lilith,
Definite sign of a hot market ...and in S.E. Qld you are in one !
Also , perhaps a bit of a culture change for Brissy , where , in the past ....gee's you only went to auction if you were desperate and/or there was "something" wrong with the place . I'm showing my age here !!
LL
Definite sign of a hot market ...and in S.E. Qld you are in one !
Also , perhaps a bit of a culture change for Brissy , where , in the past ....gee's you only went to auction if you were desperate and/or there was "something" wrong with the place . I'm showing my age here !!
LL
OK, but I noticed that these properties were out there for about 3 months plus (usually in the US, a property listed for 60 days unsold means price cut or no sell). So it can't be read as a negative sign otherwise?
If auction can yield higher bids, why aren't all properties auctioned instead of a negotiated sale?
Please forgive me for asking stupid questions since I am new to the area.
If auction can yield higher bids, why aren't all properties auctioned instead of a negotiated sale?
Please forgive me for asking stupid questions since I am new to the area.
My personal reason for not liking auctions, (to sell a property), is that I have always considered that auctions are where you go to BUY a bargain.
I may be wrong, but thats how I have been conditioned over the last few decades. I just wouldnt trust that I would get a good price. Whereas listing it, I would know exactly what price I am getting. And in the current Brisbane market, i wouldnt worry about being on the market for too long, as I would know that my price can keep going up !
I have personally seen property going up in price between different offers. eg: Advertised in paper at $245k, advised by agent that they now want $255k, made that offer, and the agent came back and said no deal, they now want $265k, all within a couple of days! in early October.
I may be wrong, but thats how I have been conditioned over the last few decades. I just wouldnt trust that I would get a good price. Whereas listing it, I would know exactly what price I am getting. And in the current Brisbane market, i wouldnt worry about being on the market for too long, as I would know that my price can keep going up !
I have personally seen property going up in price between different offers. eg: Advertised in paper at $245k, advised by agent that they now want $255k, made that offer, and the agent came back and said no deal, they now want $265k, all within a couple of days! in early October.
Lilith,
Now you're giving us some more info ...
My guess would be any property that has seriously sat on the market at the same price in SE Qld for 3 months in the current climate is over priced for what it is ....if I have explained myself correctly. Now the vendor could be getting desperate for cash and goes to auction ....it does happen.
I love auctions , either buying or selling, but a lot of people don't like the pressure , and that's fair enough.
The only rule is "There ain't no rules !"
LL
Now you're giving us some more info ...
My guess would be any property that has seriously sat on the market at the same price in SE Qld for 3 months in the current climate is over priced for what it is ....if I have explained myself correctly. Now the vendor could be getting desperate for cash and goes to auction ....it does happen.
I love auctions , either buying or selling, but a lot of people don't like the pressure , and that's fair enough.
The only rule is "There ain't no rules !"
LL
LL
I dont know sufficient about Auctions, and so I suppose that would put me of.
What happens, cost-wise to the seller, if the auction bids do not meet the reserve? ie: what does it cost the seller ?
I also know of a local property that went to auction, but did not sell, and is now listed for sale. I assume it was overpriced on the reserve.
I dont know sufficient about Auctions, and so I suppose that would put me of.
What happens, cost-wise to the seller, if the auction bids do not meet the reserve? ie: what does it cost the seller ?
I also know of a local property that went to auction, but did not sell, and is now listed for sale. I assume it was overpriced on the reserve.
ABCD,
If the bids don't meet the vendors reserve , then the property is "passed in" and highest bidder gets first chance to negotiate with the vendor..(you will normally see the highest bidder go "inside" ....and you'll see the REA staff cuddling up to the under bidders just in case a deal is not done with the highest bidder !)
If the reserve is not met , and then agreement is not reached, the property is then listed " for sale" ...either at the reserve, or at some "other price" decided by the vendor.
...as with the local property you observed.
That's about it .
LL
If the bids don't meet the vendors reserve , then the property is "passed in" and highest bidder gets first chance to negotiate with the vendor..(you will normally see the highest bidder go "inside" ....and you'll see the REA staff cuddling up to the under bidders just in case a deal is not done with the highest bidder !)
If the reserve is not met , and then agreement is not reached, the property is then listed " for sale" ...either at the reserve, or at some "other price" decided by the vendor.
...as with the local property you observed.
That's about it .
LL
Auction action
All the reasoning in the replies are feasable. Another is the agent has cracked the vendors to their own benefit trying to kick start the stalled listing at the same time making some money on the side, promoting the agency through advertising amongst others.
These have been my observations of the local goings on in my area of interest.
All the reasoning in the replies are feasable. Another is the agent has cracked the vendors to their own benefit trying to kick start the stalled listing at the same time making some money on the side, promoting the agency through advertising amongst others.
These have been my observations of the local goings on in my area of interest.
Usually, if it's been around for a while, the owner's run out of time and/or patience.
Often happens when they bought before selling, building and they need to finalise now to move etc.
Can be an opportunity.....
Often happens as property was overvalued in the first place, or couldn't agree on terms. (ie got the price, but dont want to settle fast and have to move/rent/move etc)
Can be a good time (if you like the property) to talk directly to the vendor and find out expectations, or put in a pre-auction bid.
Cheerio
Simon.
Often happens when they bought before selling, building and they need to finalise now to move etc.
Can be an opportunity.....
Often happens as property was overvalued in the first place, or couldn't agree on terms. (ie got the price, but dont want to settle fast and have to move/rent/move etc)
Can be a good time (if you like the property) to talk directly to the vendor and find out expectations, or put in a pre-auction bid.
Cheerio
Simon.
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