Low Bid
I am not a new homeowner. And I despise auctions.
It was interesting to see and a little unnerving to participate. The auction was held off-site, and multiple properties went under the hammer on the day. I’d inspected the first property for sale, so I was surprised when it went for $561,000. It didn’t have the rising damp problem of the house I was going for, but it was still a total renovation job, with electrical work and plumbing required, years of wallpapering, damaged plasterwork, and a roof that was going to come off in the next strong wind. Bidding was fierce for a while, then fell off into a price war between just two contenders, each offering another $500 on top of the last, until finally one jumped five grand and finished off the other.
The next house was to be mine, and I opened the bidding. It seemed more dispirited than the other property, which was, admittedly, in a better location overall, and I thought for a little while that it might come off. We were at the point of going to the “third and final call” on my bid when somebody new jumped in, and the bidding took off again, well beyond anything I thought was reasonable. In the end, it went for about 20 grand more than I was willing to spend in purchasing it and about 5 more than my bank’s valuation had it.
I’ll have to find a new place in the next sixty days, or I’ll be into the bank for $600 in fees. No more auctions.
03 March 2008
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2 comments:
It sounds like a totally nerve wracking process? Is that how all properties are sold down under? Auctions make me nervous under the best of circumstances and I can't help but get carried away from time to time, just being caught up in the frenzy. Don't they have regular agents who list properties? Best of luck!
The majority of properties go to auction rather than private treaty, because you can get a lot more money that way. Housing stock, especially in the more desirable areas, is in short supply, mainly due to the tax advantages of holding investment properties (as opposed to just owning your own home, which has no tax advantages at all). All, however, are handled by property agents (although commissions are much lower than they are in the States).
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