catdog68 wrote:

Harcourts charge $2459 for their marketing package which includes the auctioneer's fees. Trademe Website base listing is $69 and a feature listing is $199, so we pay for both. realestate.co.nz is $99. They also charge $199 for digital marketing (facebook). Of course I know we can choose what we want in our marketing.

Why should you pay for advertising? Or "marketing" as they put it. The commission is sufficient to cover all these costs and leave enough for a nice holiday in Raratonga. Agents will argue that all those expenses must come from their pocket if the property doesn't sell, but my argument is (and always has been) - if I am pricing fairly, then there's no reason it won't sell, and if I'm pricing too high, why are you taking on the listing?

Yes, at auction you can have two parties bidding against each other, but the same thing happens in a deadline sale, except neither party knows what the other is offering so you can have a considerable difference in price and conditions, to your benefit.

At auction, you only need to bid $1 more than your opponent.

Edited by seaqueen at 12:57 pm, Mon 24 May

seaqueen - 2021-05-24 12:56:00

superdave0_13 wrote:

Codswallop

Yeah loads more Bluebook and paper advertising. the Big Blue Co love that stuff.

sparkychap - 2021-05-24 13:00:00

brouser3 wrote:

Sometimes potential buyers will seek pre-arrangment for conditions should their bid at auction be successful, however if I were a vendor, I would of expected any serious potential buyer to have their finance sorted and all due dillegence done eg LIM reports etc. So a scenario may be that the potential buyer wishes to settle earlier, or they wish to offer a smaller deposit, or they may even wish to settle later BUT there is evidence that the funds will be available, not that they are hoping/waiting for their own sale to do unconditional ..............

Exactly, so all those people with homes still to sell and wishing to make an offer subject to the sale of their own property cannot bid, which is why I said it rules out a number of potential buyers.

That's fine if you want to sell in a hurry, but otherwise why not widen your potential market?

seaqueen - 2021-05-24 13:01:00

hooserat wrote:

I thought if you sold at auction its "as is" there are no comebacks. Is that correct?

No that's not it. Vendor warranties generally still apply.

sparkychap - 2021-05-24 13:01:00

catdog68 wrote:

Seaqueen, I asked the agent this question. His answer was that they advertise the property as going to auction unless sold prior. So a buyer can put in an offer, if we are happy with it we can accept it, or accept it with the provision that at auction if we get a higher offer we will take the higher offer.

Have been to a number of these lately.
Was buying for a friend and she asked what I thought the opening offer would be.
Well, it was $30k more than what I estimated it, so we didn't bid.

smallwoods - 2021-05-24 14:17:00

sparkychap wrote:

No that's not it. Vendor warranties generally still apply.

Not to mention various common law and statutory obligations.

johnston - 2021-05-24 15:08:00

If you are going to sell a home in Chch at auction, I would also suggest that you get all of the EQ repair info and insurance info sorted ahead of time. That way, people going to your auction know the home will be readily insurable post auction. Insurance in Chch is still not that straight forward, and it catches quite a fair few people out still.

phoenix22 - 2021-05-24 16:12:00

apollo11 wrote:

Auctions can benefit the seller. They can sometimes benefit the buyer. They ALWAYS benefit the agent.

Haha, my take a little different. They rarely benefit the seller (too many prospective buyers either can't or won't bid). They generally benefit the buyer and yip, always benefit the agent!

jeffqv - 2021-05-24 16:13:00

seaqueen wrote:

Exactly, so all those people with homes still to sell and wishing to make an offer subject to the sale of their own property cannot bid, which is why I said it rules out a number of potential buyers.

Maybe not. Talk to the agent before and confirm with the buyer that your offer will be subject to finance, sale of property, phase of the moon or whatever. Buyer may well accept some conditions.

However as said elsewhere, we and many others will NEVER bid at an action so sellers do miss some opportunities.

tony9 - 2021-05-24 16:31:00

The upside to the buyer of an auction is that the seller can not pick and choose who they will sell to.. at the fall of the hammer who ever is the highest bidder is the winner... therefore in essence the buyer can guarantee that they will be successful, they just have to be the highest bidder !!

onl_148 - 2021-05-24 16:34:00

jeffqv wrote:

Haha, my take a little different. They rarely benefit the seller (too many prospective buyers either can't or won't bid). They generally benefit the buyer and yip, always benefit the agent!

Depends on the market. I'd use auction if there was FOMO in the air, but otherwise, nope.

apollo11 - 2021-05-24 16:34:00

apollo11 wrote:

Depends on the market. I'd use auction if there was FOMO in the air, but otherwise, nope.

but tender is still better as I have no idea what others are bidding so I’d need to put in my absolute best price.

The only way auctions can be better is if, in the heat, excitement, and smell of the auctioneers BO, a buyer spends more than they had intended….

Edited by sparkychap at 5:02 pm, Mon 24 May

sparkychap - 2021-05-24 17:02:00

sparkychap wrote:

but tender is still better as I have no idea what others are bidding so I’d need to put in my absolute best price.

The only way auctions can be better is if, in the heat, excitement, and smell of the auctioneers BO, a buyer spends more than they had intended….

Yip then can't perform as they are over their limits, see a heap of that!

jeffqv - 2021-05-24 17:25:00

superdave0_13 wrote:

Lots of properties are getting passed in at auction now as the market cools..

Yeah REAs love it. Sellers well...in a mad market OK, but now, unless your house is special, I wouldn't.

lythande1 - 2021-05-24 17:30:00

sparkychap wrote:

but tender is still better as I have no idea what others are bidding so I’d need to put in my absolute best price.

The only way auctions can be better is if, in the heat, excitement, and smell of the auctioneers BO, a buyer spends more than they had intended….

And someone else pushes them up.

Many overlook the fact that most winning bids will be less than what the winning bidder was prepared to spend.

For example, bidder A is prepared to go to 8. Bidder B is prepared to go to 10. Bidder B will win the auction at 8.1. If it is passed in, bidder B may have to go to 8.5 unless they are foolish and show their hand.

tony9 - 2021-05-24 18:19:00

tony9 wrote:

And someone else pushes them up.

Many overlook the fact that most winning bids will be less than what the winning bidder was prepared to spend.

For example, bidder A is prepared to go to 8. Bidder B is prepared to go to 10. Bidder B will win the auction at 8.1. If it is passed in, bidder B may have to go to 8.5 unless they are foolish and show their hand.

Exactly, so an auction is generally not designed to get the best price.

sparkychap - 2021-05-24 19:24:00

tony9 wrote:

Maybe not. Talk to the agent before and confirm with the buyer that your offer will be subject to finance, sale of property, phase of the moon or whatever. Buyer may well accept some conditions.

Why would a vendor accept disadvantageous conditions such as subject to sale, when the winning bid might only be a few thousand more than a clean unconditional one?

sparkychap - 2021-05-24 19:47:00

sparkychap wrote:

Why would a vendor accept disadvantageous conditions such as subject to sale, when the winning bid might only be a few thousand more than a clean unconditional one?

Because the more genuine bidders, the higher the final price may be, by tens of thousands of dollars.

tony9 - 2021-05-24 20:42:00

tony9 wrote:

Because the more genuine bidders, the higher the final price may be, by tens of thousands of dollars.

the reality is the agents will condition the vendor not to accept conditions.

Edited by sparkychap at 9:04 pm, Mon 24 May

sparkychap - 2021-05-24 20:54:00

sparkychap wrote:

Exactly, so an auction is generally not designed to get the best price.

Recent sales in my area don't support your view. Acceptable pre auction offers
being beaten by thousands at auction. Vendors ecstatic. Recent experience in Papamoa much the same.

zak21 - 2021-05-28 09:52:00

zak21 wrote:

Recent sales in my area don't support your view. Acceptable pre auction offers
being beaten by thousands at auction. Vendors ecstatic. Recent experience in Papamoa much the same.

The problem you have is you never know the alternative. I've seen vendors leave hundreds of thousands on the table through the buyer knowing what they had to beat to get the deal.

superdave0_13 - 2021-05-28 09:58:00

zak21 wrote:

Recent sales in my area don't support your view. Acceptable pre auction offers
being beaten by thousands at auction. Vendors ecstatic. Recent experience in Papamoa much the same.

And in a blind tender, its likely that the top bidder might have bid even more. Otherwise they only had to bid a few thou over the next bidder.

sparkychap - 2021-05-28 12:38:00

sparkychap wrote:

And in a blind tender, its likely that the top bidder might have bid even more. Otherwise they only had to bid a few thou over the next bidder.[/quote
Get back in the ark.I read this stuff on here in Seaqueens time.You are not convincing!

zak21 - 2021-05-28 15:56:00

You know, I really don’t care if you’re brainwashed. Have a good weekend Zak.

sparkychap - 2021-05-28 16:10:00

sparkychap wrote:

the reality is the agents will condition the vendor not to accept conditions.

This unfortunately is very true, auctions only attract around 20% of the possible buyer pool.

jeffqv - 2021-05-28 16:18:00

[/quote
Get back in the ark.I read this stuff on here in Seaqueens time.You are not convincing![/quote]

"Seaqueen's". It needed an apostrophe.

seaqueen - 2021-05-28 18:18:00

jeffqv wrote:

This unfortunately is very true, auctions only attract around 20% of the possible buyer pool.

The top 20%.

zak21 - 2021-05-29 20:21:00

zak21 wrote:

The top 20%.

”sure, Jan”

sparkychap - 2021-05-30 07:22:00

This message was deleted.

kittycatkin - 2021-05-30 18:43:00

This message was deleted.

kittycatkin - 2021-05-30 18:46:00

kittycatkin wrote:

I know that I shouldn't judge all Ray Whites by one, but they were useless when we were selling !

We really appreciate our Ray White agent, who's brought us higher offers than we expected or hoped for every time we've used him. So yes...it's tempting to say they're all useless, but actually the vast majority are honest and decent people who do a great job :-).

seaqueen - 2021-05-30 18:50:00

Most agencies leave training and personal development up to the individual so you are always going to get a mix in an agency similar to hairdressers in a Salon. They're not all the same.

superdave0_13 - 2021-05-30 20:21:00

superdave0_13 wrote:

Most agencies leave training and personal development up to the individual so you are always going to get a mix in an agency similar to hairdressers in a Salon. They're not all the same.

Some give you a better clipping?

zak21 - 2021-05-30 20:58:00

zak21 wrote:

The top 20%.

hahahahah

loose.unit8 - 2021-05-31 09:19:00

Is it normal to have settlement 4 to 8 weeks after selling at auction

dadtofive - 2021-07-13 13:56:00

dadtofive wrote:

Is it normal to have settlement 4 to 8 weeks after selling at auction

That would be in the draft S&P Agreement issued prior to the Auction. Unusual for so long but not that uncommon.

jeffqv - 2021-07-13 15:44:00