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Cancelling Auction Day Before

Discussion in 'General Property Chat' started by newbie1234, 23rd Sep, 2016.

  1. newbie1234

    newbie1234 Active Member

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    There is something morally wrong to cancel an auction that was advertised for weeks as a trustee auction - a day before because they accepted an offer. Especially when people wasted money getting strata reports and organising finance in good faith to attend.

    I don't care if they have a right to do it morally it just isn't right - they should have at least provided a strata report to minimise the expense wasted for potential buyers.

    This really puts me off buying property, this coupled with the stupid crap we've been through buying our SMSF and I am completely over property. Would rather spend my money on a holiday and die poor.

    Rant over
     
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  2. Jingo

    Jingo Well-Known Member

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    I can understand your frustration and disappointment, especially as you had spent money having the usual checks done.

    Did the agent contact serious potential purchasers, giving them an opportunity to counter offer?

    In any case, keep persisting, it will be worth it in the long term. If you give up and spend your hard earned savings now, you will regret it in the future.

    Regards Jason
     
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  3. marty998

    marty998 Well-Known Member

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    "Friendly Auctions" are supposed to mitigate this problem somewhat... don't know the full ins and outs but in a FA the vendor supplies the B&P or strata report.
     
  4. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    If a canceled auction (which you were not guaranteed to be successful at anyway) upsets you that much, maybe a SMSF is not the way to go for you? It's not for everyone. You need a certain type of temperament to manage and invest at that level. You need to leave the emotions out of investing. Stuff happens.
     
  5. Biz

    Biz Well-Known Member

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    Try the first world problems thread.
     
  6. The Y-man

    The Y-man Moderator Staff Member

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    I have a very simple solution to avoid such disappointments - Don't buy at auctions

    The Y-man
     
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  7. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    I went to an auction last weekend for a client. Recently comps including a house down the road by same agent put this place at 445-465k. It was with me at 3rd and final call at 450k, looked in the bag. Then two builders decided to slug it out and I got in the car and drove away when they got to 520k and rising, bidding away their margin to secure it.
     
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  8. neK

    neK Well-Known Member

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    That's the right attitude ;)
     
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  9. geoffw

    geoffw Moderator Staff Member

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    I had this happen once- except that I only found out when I turned up at the auction.

    When I objected, I was told just that I had the same right to put in an offer before the auction as the person who did so.
     
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  10. jins13

    jins13 Well-Known Member

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    I hate auctions with a passion. I went to several auctions and now due to the fear of the val coming way under, I really don't want to put myself in this senario.
     
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  11. geoffw

    geoffw Moderator Staff Member

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    The problem the OP raises is a common problem with auctions- not just having the auction cancelled, but paying for inspections and being outbid. A person could spend a fortune on inspections and never buy a house. That in itself may put pressure on people to bid, just to avoid continually spending money.

    An inspection company stands to make good money as well, charging for the identical inspection report to all interested parties.

    The ACT some years back introduced a system where the vendor pays for insection reports which must be provided to any interested buyer at an auction; the purchaser then reimburses the vendor. It is then up to purchasers whether they trust the vendor's report - any reputable inspection company would have an obligation to supply an unbiased report.

    I think the idea certainly has merit.
     
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  12. New Town

    New Town Well-Known Member

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    Im pro auction but this highlights how inefficient they can be.
     
    Last edited: 24th Sep, 2016
  13. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    I always prime clients about property purchases. There are so many variables and unkowns that issues invariabley arise and when they do we adress them calmly and efficiently and press on. Whingeing about them only magnifies the problem and changes nothing except the atmosphere.

    You do need a certain temprement for IPs and if you dont have it then explore other investing options but they will have there challenges as well.

    Did you do a skid?
     
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  14. joel

    joel Well-Known Member

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    Solution: don't waste your time with auctions..
     
  15. Leo2413

    Leo2413 Well-Known Member Premium Member

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    If that pissed you off then how about being up almost all night for a week to negotiate a deal in Australia while you are in Europe on a semi holiday. Agent completely wasted my time, i spent a few thousand on various reports, legals and paid someone to attend an auction for me and missed out by 20k. Agent flat out lied about amount of interest in the property, massively underquoted and was deceitful on a few other fronts basically using me to push up the price for her client. Good for her and client. I would want my agent to do the same for me. Anyway the deal was dead at 1:15pm and at 1:16pm i had completely wiped out everything that just happened.

    Chased another deal over the next few days and was successful, closing the deal in about 4 hours.

    The point is do you want to be pissed or do you want to achieve your dreams? It's really that simple.

    my 2 cents.
     
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  16. samiam

    samiam Well-Known Member

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    I thought it only happened to me, newbie. Twice in last few weeks. Make me feel better now @Leo2413 :p
     
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  17. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Happens to us all. Important thing is to not let it derail you from your goals and just keep punching ahead. The longer you're in this game the more $h%t you're going to experience. It's just part and parcel of the path to getting to the end game. I just say good for them and move forward. Afterall I'd want my agent to be as sharp as theirs when the tables are turned. Gotta be able to take it just as well as you give it imo.
     
    Last edited: 25th Sep, 2016
  18. dabbler

    dabbler Well-Known Member

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    No, not really, however I always ask if they are going to auction or taking offers before, if the agent is decent, they will let you know if it changes, but hey, a lot won't.

    I do not like auctions myself, in a hot market I think it is madness x 2 for the most part.

    Even buying with a normal sale you can/do lose quite a few with a lot of wasted time.

    Part of the territory really.
     
  19. The Y-man

    The Y-man Moderator Staff Member

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    I love auctions.... when I am selling.

    The Y-man
     
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  20. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Nope, I wear brown undies to auctions
     
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