AUCTIONS

Viewing 13 posts - 1 through 13 (of 13 total)

robynhood
Member
@robynhood
Join Date: 2003
Post Count: 19
November 18, 2003 - 2:32 pm
If a town has a large portion of properties going to Auction, does this mean a buying frenzy is happening in the area.
Any thoughts
Thanks Joy
Jake_Heinemann
Member
@jake_heinemann
Join Date: 2003
Post Count: 25
November 18, 2003 - 2:41 pm
not neccesarily a buying frenzy. maybe just a selling frenzy, which could mean prices go down so maybe buy one….
i dunno’
jake.
=======================================================
“Your Profit is made when you buy… not when you sell” (Rich Dad)
Billfromoz
Participant
@billfromoz
Join Date: 2003
Post Count: 381
November 18, 2003 - 4:05 pm
Hi Jake….
Seasonal factor… and a selling frenzy, prior to worse to come for sellers after Xmas…wait till end Feb/march…an accumulation of unsold properties that failed at auctions.
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages, Option Writing & Forex. [email protected]
u9026a
Member
@u9026a
Join Date: 2003
Post Count: 16
November 19, 2003 - 7:24 am
Auction is just one way to sell real estate, not the best way for the seller but definitely the best as far as the agent is concerned. As long as owners fall for the agents bull when it comes to selling then auctions will never disappear. Agents in Aus have an easy life – advertising paid for them, no need to look for buyers, kickbacks from various sources, etc etc. If you’re interested take a look at the Jenman site: http://www.jenman.com.au
He talks bollocks most of the time but does have some good points.
HousesOnly
Participant
@housesonly
Join Date: 2003
Post Count: 167
November 19, 2003 - 7:39 am
Some markets (like Melbourne) have an “Auction Culture” and this is bread by the RE industry. I agree with u9026a that it is not always the best way to sell as it often excludes many buyers which cannot be a good thing for the price. In general agents will recommend an auction where they are not able to easily arrive at a realistic value for the property (maybe because it is too unique) and secondly when they anticipate that there will be many people wanting to compete for the property. Auctions have in the past caused some people to spend more than they should have or wanted to but this tends to change when there are more properties to choose from.
MichaelYardney
Participant
@michaelyardney
Join Date: 2001
Post Count: 616
November 21, 2003 - 5:53 pm
The rules for conducting auctions have changed considerably over the last few months. I think this was discussed by Steve McKnight in his last newsletter.
What this means is the techniques for buying at auction that worked well in the past may no longer be appropriate.
I discuss how to make the most of auctions in our monthly newsletter this month. I know that many readers of this forum subscribe. If you missed this month’s issue or wnat to subscribe click here
http://www.metropole.com.au/html/Subscribe.htm
Michael Yardney
Metropole Properties
http://www.metropole.com.au
muppet
Member
@muppet
Join Date: 2003
Post Count: 900
November 21, 2003 - 9:15 pm
Hi Michael
Great article on Auctions in your newsletter.
Would recommend that everyone subsribe to your newsletter.
Regards
MichaelYardney
Participant
@michaelyardney
Join Date: 2001
Post Count: 616
November 22, 2003 - 8:21 am
quote:
Hi Michael
Great article on Auctions in your newsletter.
Would recommend that everyone subsribe to your newsletter.
Regards
Thanks Muppett for the great wrap. A lot of effort goes into it and we get a few hundred new subscribers a month which is great but the more the merrier
Michael Yardney
Metropole Properties
http://www.metropole.com.au
enduser
Member
@enduser
Join Date: 2003
Post Count: 74
November 22, 2003 - 12:13 pm
In Melbourne it looks like the wealthier and pricier the suburb and property, the more likely you see auctions. Toorak, almost all, Dandenong, almost none, (No insult to Dandenongians intended).
Celivia
Participant
@celivia
Join Date: 2003
Post Count: 886
November 22, 2003 - 12:45 pm
Yesterday I described to your newsletter too, Michael, and I think it’s wonderful information. [^] Thanks.[]
MichaelYardney
Participant
@michaelyardney
Join Date: 2001
Post Count: 616
November 22, 2003 - 2:17 pm
quote:
In Melbourne it looks like the wealthier and pricier the suburb and property, the more likely you see auctions. Toorak, almost all, Dandenong, almost none, (No insult to Dandenongians intended).
You are right. Auctions work better for unique properties and those that may be hard to put a definate sale price on.
If there are 3 other similar properties in the street that are for sale the price is pretty well known and an auction does not work well.
Michael Yardney
Metropole Properties
http://www.metropole.com.au
peterp
Member
@peterp
Join Date: 2003
Post Count: 307
November 23, 2003 - 12:24 am
This would mean that we should distrust stats derived from auctions (eg average prices and clearance rates) as they may give a misleading impression being skewed towards the more expensive properties?
This is apart from the issue of properties passed in at ‘vendor bid’ prices.
I would suspect that auction results would be even less representative in cities like Perth where they are much less common.
Peter
MichaelYardney
Participant
@michaelyardney
Join Date: 2001
Post Count: 616
November 24, 2003 - 12:45 pm
quote:
This would mean that we should distrust stats derived from auctions (eg average prices and clearance rates) as they may give a misleading impression being skewed towards the more expensive properties?
This is apart from the issue of properties passed in at ‘vendor bid’ prices.
I would suspect that auction results would be even less representative in cities like Perth where they are much less common.
Peter
There is little benefit in using results of auctions as an indication of movements in value. Auctions only represent a small proprtion of properties sold. Most statisticians use median sale prices derived form all types of sale
Michael Yardney
Metropole Properties
http://www.metropole.com.au