When we were buying our first house it was like a silent auction - homes were being bought first day on the market and stock was very low. Turned out that the other people we were "competing" against didn't have the finance anyway, but of course they didn't say anything until the end of the day.
My FIL held all the cards when they were buying their last property and that's the way he thinks it still is - he can't understand why we are taking so long to get into a home.
I don't know why, but something scares me about an auction - I guess it is the possibility of the price going too far. Actually, I don't know if "scare" is the right term - probably also presume that the property will go so high that we shouldn't bother anyway.
Last edited by Little Ted; 13-03-2015 at 08:44.
I prefer buying and selling as 'best offers by' type scenario.
I prefer to buy that way as you have time to think about what is the absolute max you are willing to pay and be prepared that you may not secure the property. This way too you don't get carried away with the emotion of an auction and accidentally pay too much.
I prefer to sell that way too if it's a popular suburb as you don't have to fart **** around with negotiations or stress of auction.
@Little Ted, if buying at auction in SA you have to get a building and pest inspection prior to auction because at the fall of the hammer you're legally obliged to purchase the property so you can't get out of it. If you turn up issues in an inspection after you've bought it, you can't negotiate the price down, you need to do it before so you can make an informed decision when bidding on what the property is worth. It can get expensive if you're forever getting building inspections on property after property that you get outbid on.
That would get expensive if you don't get the house in an auction - we really don't have the money to do that sort of thing for another year!
Yes all your pest and building has to be done prior , we suggest to our owners to get one done and then the cost is billed to the winning bidder so then every buyer does not have to pay for it unless you end up buying it
The problem in boom markets is that you do get owners who don't really need to sell and just put it on the market to see if they get a good price - we don't take these ones on unless I know I have buyers for it as it just wastes everyone's time and gets buyers hopes up - you will find statistically most owners who go to auction are more motivated to sell as they are usually paying more in marketing and fees
I don't do best offers over as I find you always get buyers who complain when you sell it to a higher offer that they would have paid more or they get cranky they missed out for $1000 - and I'm like well why did you tell me that you would pay more!
Littleted don't be scared of auctions - yes crazy markets can bring crazy prices but you can still buy homes for what you can afford as honestly until the day no one ( especially us!) has a clue how many buyers will turn up or if they will even bid!
There is no such a thing as an offer form here - it's actually a good idea as even verbal offers ( which mean nothing ) have to be submitted here and buyers think they are doing the right thing by offering low and slowly going up but when I've got 10 plus buyers doing it on every home it just gets crazy, that's probably why I like auctions so the buyers can see the competition and bid to want they want and can't blame us if they miss out!
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