Buying/Selling by Auction

[2BAD4U]

In WA auctions are not a very popular way to buy / sell a house, so was wondering why it is more popular on the east coast.

Would also like to know what you see as the benefits / pitfalls of auctions.

[bluelabel]

Depends on whether you are the buyer or seller. The first thing that comes to mind is obviously the price. If you are the vendor you go to auction in hope of lots of peeps showing up, bidding and hiking the price way above the reserve. Then there’s the buyer who obviously pays more because they get in a bidding war.

Then there’s the agent who tries to sell to the neighbours azalea bush, they say it doesn’t happen but I reckon I've seen a few dodgies (wont go on record as I don’t have evidence) where I cant tell someone else is bidding, mind you the agent is in the best position to see everyone.

Then there’s the classic, when you’ve won the auction and the agent says to you, sorry the property hasn’t met reserve, would you mind forking an extra 20 g's to hit the mark. Ummm… no, If I wanted to pay an extra $20,000 I would have bid an extra $20,000. In my opinion if you go to auction you should get what is bid, if you wanted a specific price, just pop it on the market at $XXX,XXX. It seems the auction is just for the vendor to get a better price. I feel that if you don’t make reserve then tough, that’s the risk you take going to auction. Anyway enough ranting from me...

I’d like to hear others experiences as well

cheers,

blue

[2BAD4U]

Similarly, over the last 12 months I have noticed a few more houses being sold by tender. Not something I would go for.

[bluelabel]

over the last 12 months I have noticed a few more houses being sold by tender.

I have seen a few of these too, probably more than a few...I have always wondered how does the tender process work on buying a house?

Do a heap of people just throw in a piece of paper with a figure on it and the sale goes to the highest figure on the piece of paper? :confused:


:bier:

blue

[2BAD4U]

That's how I understand it works. Recently there was a new release of land over here where it was all sold by tender (this being stage 1), I guess this then set the base price for all future stages as they found out how much people were willing to pay for that area.