sally1968

Having spent alot of time trawling the real estate web sites i'm amazed at how many of the properties seem to be being sold via auction. Does anybody have any idea why this is the case and how difficult is it to buy this way?

Any info gratefully received.

Sally

debsy

not at all .auction does not mean cheaper prices..agents prefer them because it represent generally less effort for them + the seller pay the cost of the auction ,which indicate that they are serious to sell and not just advertising to test the market..from a buyer point of view ,they could be little dangerous as you could be sucked to increase your bidding by opponents who may not be genuine..it is an area that require skills and understanding of the finner prints,as it bring lots of advantages and dis-advantages for both the seller and the buyer..

This is what a friend wrote to me in an email

Vicky88

The whole idea of an auction is to hopefully push the price up beyond what would normally be achieved if the house was just put up for sale. Also you will note that houses going for auction normally have an auction day shortly after they go on the market. The intent is to sell them on auction day, rather than let the place linger too long. If the majority of houses in an area are going for auction you can take that as a sign that housing prices are buoyant in the area. When the market is less fervent you will find most properties are For Sale rather than auction.

Vicky88

Forgot to add that if you are going to bid at an auction make sure that you have set your price before you go so you don't get involved in all the hype and end up paying more than you can afford.

Rosy

I would have only one comment on Auctions - at least around here (Brisbane). BEWARE. Quite often the Auctions are "fixed" i.e. Real Estate Agents have "false bidders" who hike the price up, and the REA then try and pressurise buyers into going for a higher price than the property is worth.

Probably the best way to buy is by tender or traditional "offer". Tenders are very popular around here at the moment, because the market is booming - that way, if someone really wants the property they will tender a better price. Benefits seller, and the buyer gets to state exactly what they are prepared to pay for their new home.