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What about this auction selling technique?

Discussion in 'The Buying & Selling Process' started by TMNT, 30th Oct, 2015.

  1. TMNT

    TMNT Well-Known Member

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    First bid at reserve wins!

    obviously the vendor must know the market price and not be in a hot market,

    lets say the house is realistically worth $500k,

    you set the reserve at $515k for example,

    and then you get bids, this will get people hopefully to bid a bit higher and from the start and possibly get to your slightly higher reserve,

    and if you get a very high bid well over the reserve, then thats even better
     
  2. Esel

    Esel Well-Known Member

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    Sounds like the current system?Or a bit like sealed bids where you submit your best offer by a set date.

    I like the idea of advertising the reserve during the advertising campaign.

    I dont think the current auction system gets the highest possible price for the seller so there must better systems to consider.
     
  3. TMNT

    TMNT Well-Known Member

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    those "offers by set date" i interpreted to be, give us your best bid, one shot only, however, if it doesnt reach reserve or there are multiple similar highest bids, we will negotiate with them anyway,

    so its just the same as an auction
     
  4. Big Will

    Big Will Well-Known Member

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    Don't like it, What if someone says 516k and they get it but the other person said 560k 5 seconds later.

    You want to tell the vendor sorry but you have to take the 516k...
     
    Jacque likes this.
  5. Big Will

    Big Will Well-Known Member

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    except you cannot see what the other person is bidding so not the same.
     
  6. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

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    Ridiculous method if you ask me - would only really work if the reserve was well above reality and set at a "wishful price"...
     
  7. TMNT

    TMNT Well-Known Member

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    and thatw ould be the pointof it,

    put a decent bid first or it may go lower to someone else
     
  8. ej89

    ej89 Well-Known Member

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    Can't the reserve be changed at any time though?
     
  9. Big Will

    Big Will Well-Known Member

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    So you would accept the 516k as a vendor even though someone said 560k?

    What if it was 516k and 1/2 second later a person said 700k again you are forced on 516k, no ty.