An auction on my house is in 2 weeks time. Opinions needed

Discussion in 'The Buying & Selling Process' started by Abooking, 12th Aug, 2017.

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  1. Abooking

    Abooking Well-Known Member

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    I'm selling my I.P in a country town NSW in a few weeks. The market is really active at the moment and its definitely a sellers market. A comparable house listed for auction a few weeks prior to mine is now 'under offer'. It was in a less desirable location and smaller land size.

    The 2 agents in town have limited listings. I've never seen it like this in the last 15 yrs. Its always been the opposite (loads of houses for sale and few buyers around)

    The agent told me there are potentially 2 interested buyers. 1 did his own building inspection.

    Im abroad at the moment and totally relying on the agent to do the best for me. He said we will discuss the reserve price closer to the auction. We were chatting about the reserve and he said to me 'its best to keep the reserve price lower' if there are 2 bidders 'in order to keep the interest up'. Then he kind of said to me that its all negotiable until the point of a deposit being paid / signed contract. I said that I thought that if the final bid exceeds the reserve price and when the hammer falls thats a done deal. We cant go back to the negotiating table. Is this correct?

    A comparable house sold 1.5 months ago for $890k and thats what Im chasing for my house. That house needed a lot of work whereas mine doesn't need much improvement. 3 months ago another house 2 streets away sold for $880k. Both of these houses had similar land size and b/rooms etc.

    I dont know what reserve to put on my house. Any opinions are appreciated. An appraisal from another agent suggested I could maybe get in the low 900's for my house based on recent sales

    thanks
     
  2. Gockie

    Gockie Life is good ☺️ Premium Member

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    I'd go no lower than 900k and if it fails to meet reserve, the agent should negotiate with the higher bidder first. Setting a low reserve isn't in your interest, it's in the interest of the agent who can proudly proclaim selling it $xxx,xxx above reserve if it actually sells. Doesn't do you any favours.
     
    Tom Rivera and Abooking like this.
  3. Abooking

    Abooking Well-Known Member

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    Thanks for your opinion.

    I agree that the lower reserve only is of benefit to the agent.
     
  4. Marg4000

    Marg4000 Well-Known Member

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    And check with your solicitor.

    If you set a low reserve and the property is sold under the hammer at auction you will most probably be legally bound to that price.

    I've never heard of negotiating after a successful auction. In Qld the auctioneer actually says that if the successful buyer won't sign the contract then the auctioneer can sign on the buyer's behalf and the contract is legally binding. I would expect the same conditions apply to the seller.
    Marg
     
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  5. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Dear Ab,
    PM'd you
    cheers
     
  6. Propertunity

    Propertunity Well-Known Member

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    Same in NSW, the auctioneer holds POA for both vendor & purchaser and can sign on either's or both behalf.
     
    Marg4000 likes this.
  7. Abooking

    Abooking Well-Known Member

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    Thanks for that info. I didn't know that. cheers