Why MUST a property be sold at auction??

Discussion in 'The Buying & Selling Process' started by 1st_Home_Buyer, 6th Feb, 2016.

Join Australia's most dynamic and respected property investment community
  1. 1st_Home_Buyer

    1st_Home_Buyer Member

    Joined:
    6th Dec, 2015
    Posts:
    6
    Location:
    Australia
    We went to an open house today for a property that is listed to go to Auction.

    We put in a pre auction offer which we just found out has not been accepted.

    I noticed that the agent constantly kept noting that the owner MUST take the property to auction. Can anyone tell me why this would be the case? I note the property is or was a DHA property, does this have anything to do with it??

    Thanks.
     
    1st_Home_Buyer, 6th Feb, 2016
    #1
  2. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    In cases where
    - mortgagee has taken over
    - deceased estate
    - disagreement between spouses or siblings
    - public asset in some cases
    - a few others

    Auction is necessary as then the market determines the price and its final. No worrying about who had stronger offer or whether it should be accepted or try a bit longer etc. Auction is the most fair playing field available as other peoples offers are public.
     
    D.T., 6th Feb, 2016
    #2
    Lisa Parker and 1st_Home_Buyer like this.
  3. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,224
    Location:
    Sydney or NSW or Australia
    As per DT, Sale of a public asset needs to go to auction first. If it fails at auction, then by private treaty.
     
    Scott No Mates, 6th Feb, 2016
    #3
    Sackie and legallyblonde like this.
Benefits of Washington Brown's Referral Program