james & bev

house auctioned last night very nerve racking, but well worthwhile as it sold for 20k above the reserve 10% deposit paid by the buyer and we are over the moon.

had never been to a house auction before and if you have never been to one i would highly recommend it it was an amazing experience. For anyobdy who has a one of kind house or development/redevelopment opportunity with their house I would highly recommend it, we have made alot more than we would of done going through the normal process.

good luck to everyone trying to sell. Time now to check those flights out for mid-sept.

James

whisky

Really pleased for you both. Congratulations.
We have a one of a kind house, out in the sticks, with land.
What made you decide to go for Auction?
What sort of property were you selling?
Tell us more.

Whisky

james & bev

our house is circa 1930 detached house with scope for modernisation and extending which we only partly got round too. We have a big garden and got planning permission to build another house in part of it and then we auctioned the house and plot together. Of the 5 properties that went at this auction last night 3 sold (2 way above the guide price and 1 in the guide price which was ours) the other 2 never made the reserve but 1 of them had a reserve at the top of the guide and the other just did't get going. It all went up in 10k increments though even on the lower value houses so it realy does make your heart miss a few beats.

Sounds to me whisky like you should check this route out, can't do any harm to investigate local auction market. Since I decided on this route and have spoken to people with experience of auctions they have all given very positive reports about the prices made and obviously the process problems go away as buyer signs contracts on the night, pays 10% deposit and has to pay the balance in 28 days or lose deposit.


James

tinaj

Fantastic news! That is definitely a good way to sell your house, deposit on the night and all the money 28 days later. It sounds very secure, I would imagine you had a sound night sleep last night!

We have got a second viewing tonight. Estate agent says that they are very interested, so you never know...

GetMeOutOfHere

Good luck, fingers crossed

Jolyn

Congratulations!!! Nothing like the convenience of auctions to cut out the uncertainty.

Housebuying in Oz will suit those who like auctions - same deal as here. Most properties are still being sold by auction in the major cities. Those that are sold in the conventional way still have the deal with deposit down and balance 30, 60 or 90 days later.

BTW, auctions in Oz are not such a good deal for the sellers of usual properties. The estate agents tell them they'll get a great price as the bidding will go up and up but not so. Buyers are not stupid so don't pay more than the limit they have set themselves.

You actually get the second best price plus a bit because once the second-to-last bidder drops out the buyer doesn't have to go more than $1 higher to win it even if this is less than what they were prepared to pay. You get the best price by conventional selling with sealed bids where buyers have to nominate their best offer without knowing the other offers or risk losing the property. People say an auction is like selling by 'best offer in writing' or 'sealed bids' except the bidders know what the others are offering!

southerner

Jolyn,
Although I have never been involved in either an auction or sealed bids tender, I would have thought there are a couple of other factors going on, that would increase the relative sale price in an auction:

- in sealed bids, most buyers will not put in a bid for their absolute top price, as they like to think they can get the property for a bit less than that. For most of us, for the right property we would stretch ourselves a bit further if we knew both that a) it was absolutely necessary to go that high, and b) that we will then with certainty have the top bid (both conditions not present in sealed bids).

- in an auction you can counterbid, so technically you are only out of the running when you decide you are. This I think must work in the sellers favour, if their are multiple interested parties. In sealed bids you can be out of the running because you just underestimate what other people are willing to pay, and don't have a second chance to outbid them.

A bidding war is perfect from the sellers viewpoint, if it eventuates.

In other cases, a seller may indeed tease a better sealed bid out through effectively 'blind, last chance offers', as you have described.

Either way, I'm looking forward to buying a house in NZ (which has similar process to Aust), without all the drawn out hassle we have here in England.

whisky

We spoke to the Estate agent yesterday about putting the house up for Auction, as they also deal with Auctions, but he felt that our house wouldn't do well at an auction.
He has told us not to worry about the surveyors report at the moment, as they have to put these things to cover their backs, and we have already accepted an offer £15,000 less than was on the market for, and we shouldn't go any lower.
We are just sitting here waiting for another phone call.
There have been so many things go wrong with our house selling, it is very difficult to look on the positive side.
I'm not sure I want ot buy or sell another house either here or in Oz again. Much easier to rent, and let others have the worry.
I know I probably will though.

Whisky

Jolyn

Hang in there Whisky.

Southerner - I think all vendors hope for a bidding war and estate agents tell them that's what will happen to get them to sign up for an auction. Purchasers in Oz are used to auctions so they're not stupid and it almost never happens. Estate agents do well - auctions are simple, they get their money and they charge you separately for all the advertising in the run up to the auction.

With sealed bids, anyone who loves the house puts in their best price so as not to risk losing it. They never get a bargain as the seller can reject all the bids and ask for new bids - unlike in an auction.

In an auction estate agents pressure the seller to drop the reserve if bidding isn't going well - pointing out that all their advertising costs will be wasted. Sellers often agree in the stress of the moment and then regret it. Estate agents are ruthless about it - they want the house sold at the auction for whatever price.

Auctions are great for purchasers though - we'll be there!

southerner

Jolyn,

Thanks for the info.

Its interesting that you think it is only sellers who get screwed in auctions. Most people tend to think about the poor buyer, and are scared about buying at auction themselves because they feel they are more likely to be ripped off.

I agree you are more likely to get a bargain as a buyer at auction. But I also think in other cases you are more likely to pay 'top dollar' to keen counter bidding.

I for one, have a range of prices I might go to in different circumstances, and I personally would pay more (if absolutely necessary) in an open bid system compared to a sealed bids.

Guess the estate agents advise the sellers on the pros and cons, but can see that pressure of auction day may be a factor for both sellers and buyers.

Anyway, I have no experience as I said, so am looking forward to finding out more about both methods.

Again, thanks for the insights...

deedee

We've been to quite few auctions in NZ since coming here and to be honest its not a big deal.(no pun intended)After the auction the real estate people come and ask you on the sly if you want to pay more money anyway.Its just a way of getting people to make decisions.We also did a sealed bid on a place and we could have offered more afterwards and got the place.Theres no rules is the only rule we've found.The best auction by far was a Gold Mining outfit that was shutting down and there was over 10million bucks work of kit for sale....oh what a bargain!Not that many people turned up either.If you could have been bothered staying all day you could have made a years wage just shifting boxes.
Its funny too,because at a local garage sale people were paying more for things than they cost new....bizzare.
Never bid against a Kiwi who doesnt know what hes bidding for!