Out of interest I've attended three auctions in recent times. Each of the auctions were passed in. After the auction the price is further negotiated and the buyer offers more to close the deal. The auction results on Realestate.com.au report these as sold at auction.
To me these have not been sold at auction, but sold after the auction. Stating they've been sold at auction makes it appear the auction provided a result, but it didn't. The negotiation after the auction provided the result.
Is this a new strategy to squeeze and extra $10-$15K out of potential buyers?
Why don't buyers just walk away. They've already most likely bid more than the property is worth. But they are probably so committed at this stage, what's $10-$15K more. However if they stood their ground would the agent want to miss out on the sale? Would the owner want to walk away from the sale for the sake of $10-$15K. That's very unlikely.
I don't think any bidder at an auction would throw in a higher bid against themselves, yet that's what they seem to be doing.
Are you prepared to walk away at an auction, or would you cave?
Is this the new norm? Pass in auction to then squeeze out that little bit more.
How many auctions are being reported as successful in realestate.com.au when in fact the property in my mind has really been sold after auction? Or is the negotiation phase after the auctions still considered part of the auction?
Kelvin Eldridge
www.JustLocal.com.au
To me these have not been sold at auction, but sold after the auction. Stating they've been sold at auction makes it appear the auction provided a result, but it didn't. The negotiation after the auction provided the result.
Is this a new strategy to squeeze and extra $10-$15K out of potential buyers?
Why don't buyers just walk away. They've already most likely bid more than the property is worth. But they are probably so committed at this stage, what's $10-$15K more. However if they stood their ground would the agent want to miss out on the sale? Would the owner want to walk away from the sale for the sake of $10-$15K. That's very unlikely.
I don't think any bidder at an auction would throw in a higher bid against themselves, yet that's what they seem to be doing.
Are you prepared to walk away at an auction, or would you cave?
Is this the new norm? Pass in auction to then squeeze out that little bit more.
How many auctions are being reported as successful in realestate.com.au when in fact the property in my mind has really been sold after auction? Or is the negotiation phase after the auctions still considered part of the auction?
Kelvin Eldridge
www.JustLocal.com.au
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