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Why MUST a property be sold at auction??

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

  1. 1st_Home_Buyer

    1st_Home_Buyer Member

    Joined:
    6th Dec, 2015
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    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.
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,595
    Location:
    Adelaide, SA
    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.
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    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.
     
    Leo2413 and legallyblonde like this.