walaj

...say (for house going to auction) that "bidding will start in the 900s".

When pushed for a range the REA would not go any further, repeating where the bidding would start. :curse:

I know there is a 'blitz' on the auction practices at the moment in Sydney, so would assume they are going by the book more than normal. But I thought they had to give some kind of range, after all it is where the bidding will end and the reserve price that is important.

Vash the Stampede

NSW auction laws.

Can't see anything which specifically mentions the starting bid. Perhaps you could ask another agent, or even the REIA?

nfernand

I am too planning to buy a property in the upper north shore (Sydney). Would the house prices drop due to recent 0.25% rise in interest rates? A decent house cost 900+ eh ! + stamp duty. No more mortgade dute from 1st sep.

Rich_Lyn

You will find that areas like the north shore, 0.25% will not make any difference. Same as places like Coogee / Clovelly. There are always people who want to live there, prices keep going up. Some bargains to be had of course, good huntin'

moneypenny20

They can state what the starting price will be all they like but they would still have to drop if they didn't have any takers. Same as any auction I'd have thought.

hubbard

.

Even if they do give a guide price it is often so way off that it really is of no use, or the range is given as something like $880k - $950K. The place then sells for $50K above the upper limit and when you question them about it the response is usually 'we didn't anticipate such interest'.

We have seen this scenario time and time again in Sydney. It really makes house buying in the popular areas an absolute nightmare - almost to the point where if you have to ask the price you can assume you can't afford it!

Hutch

That's incorrect actually. If the vendors are certain that they want a particular price, then the auctioneer can use the vendors bid to open proceedings at the price they want. Seen it happen a couple of times that way. Doesn't mean anyone will actually bid at that price, of course, but it's a statement of intent from the vendor that that's the price they want and if it doesn't go at auction - they don't mind waiting.

moneypenny20

Fair enough.

louie

Virtually all the auctions I have followed (from a distance) for Lower North Shore properties have ended up about 20% over the initial guide (i.e. "bidding from $X000). I'd budget for round about that sort of figure if I were you.

hubbard

That sounds about right and echos my comments previously on here that if you looking to buy in Sydney in North shore (upper and lower) and eastern suburbs reduce your domian.com.au max price parameter by 100,000 and you will get a much truer picture as to what is in your price range - if you're searching with a budget of about $900K make your search top search parameter $800k.