When an agent gets caught out.

What would happen if no one else bid?

 

Gets passed in/negotiated afterwards.

If the bidder said I want it for 100k they would be out the door very quick as the REA and vendor wouldn't entertain stupidity.

 

That is BS. No reserve should mean no reserve! It isn't rocket science.

It is unbelievably naughty of the agent! The agent would know better!

 

Yep, what's good for the goose is good for the gander.
The seller and owner get together to push up prices with fake bids - all good.
The buyers get together to not bid... - it's just not done.

 

Hope this guy gets smacked down. Its no wonder that real estate agents rank just below used car salesmen in reputation.

 

A few doors up from us came on the market.
So as one does, went for a look.......
As 7 of the 12 houses are still original owners after 35 years
(5 Delta pl Sutherland nsw)
A few days later I receive a leter stating that the property is currently leased at $760pw, which is just under market value for the area...
WTF, same owners have been there for 15+ years !!!!!
Dodgy agents shi# me, there should be some way of dobbing this outright fraudulent advertising in
(rant over/ #sorry )

 

i hate vendor bids, for some reason I find it unethically and disugsting

the way I see it, if people wantot bid, they will, thats what reserves are for, as long as the bidders know

 

I am okay with vendor bids, as I don't want to see an opening bid of 250k for a 500k property and go up by 10k.

Rather just have a vendor bid to 450k and get on with the show.

 

There's rules on vendor bids here - must be announced as such, and must be under reserve. I'm assume it'd be fairly similar across other states. It doesn't do a whole heap, but if it gets the bidding going again after a stall then so be it.

 

I'm all for vendor bids.. In fact I'd be even more happy if the bidding started with the vendor bid, which is the reserve!

Particularly in Brisbane where auctions aren't popular, it would save everyone standing around for up to 30mins..

The seller isn't going to sell for less than reserve anyway, so it just cuts to the chase and doesn't waste anyone's time.

 

They can sell for less than reserves, I've seen it many many times.

 

how do you know they sell for less than reserve??

 

Because I have bought one at auction that was passed in and we negotiated afterwards and I have worked as a REA previously and have seen it happen to.

Auctions are also a way of educating vendors on what is realistic. E.g. a house is worth 'x' and the vendors want 'y' it will not sell at auction but they can clearly see evidence their property is only worth around 'x' as no buyers are even close to 'y'.

 

Taking a property to market in any form will educate the seller what market value is.. eventually. Auction is just the most inefficient way of doing it..

Sellers in vic/nsw must have a very different mindset? In Bris if it doesn't meet reserve, it doesn't sell. Which is evident in the 50% clearance rate.

 

Why do you think auction is the most inefficient way to sell a property?

 

I looked at one and was advertised as with a car space, in person agent was also telling everyone it has a car space, there was no such thing when I checked the contract and title, there was 6 common car spaces for 8 units, so every man for himself, that is after the likely dole bludger takes a spot for there heap of s that goes nowhere.

Most agents would tell you anything.

 

Cause your the last bidder, and does not sell at auction.