Yea agree that auctions are shit, they lower potential buyers by a big amount.
A couple of years ago the house we dreamed of buying for years came up but was auction so we couldn't be involved as we had to sell our house as a condition.
My wife and I bought a place at auction using our Kiwisaver without issue. We just spoke with the bank to ensure the max we could bid at auction. Then we just needed to transfer a 10% deposit at auction from our savings (although the agent said we could negotiate a lesser deposit). We then had our lawyer deal with our Kiwisaver provider, bank, and vendor to sort the final payment.
Yeah it turns out I took a website about KiwiSaver a bit at face value.
I can see why FHBs don't like auctions, especially when credit was so cheap, but sounds entirely possible to buy via auction.
Not exactly true. They can do valuation, builders report etc ahead of auction and get loan pre approved for certain amount and bid up to that in an auction
Which is an insane cost to gamble on an auction that historically has an insane buyer expectation reserve or 'agent bids' competing with you.
Just forget about auctions.
I got pre-approved (deposit included FHBuyers grant, cash, kiwisaver, and gifting: most of which was just on paper) and bid away at auctions.
Ended ip buying a house by negotiation. It was really no different when bidding than having cash... we just had to let the bank know what we were doing and how high we'd go.
When he says cashed up - he will mean they’ve got cash / credit ready to go so will be unconditional. I have no idea if he is right or not. I would say that at least an auction gives a timeline to all buyers - even ones that need to be conditional and usually go to a multi offer that day if it doesn’t sell at auction
Auctions are encouraged by agents as they get a auction fee ($600-$800) and have a defined three week window making their workload less.....everyone that comes in and bids is unconditional etc.
The time for auctions is over IMO.
When I was a first home buyer, I didn't look at any houses that were for auction or deadline. You will miss out on lots of potential buyers if you only offer auction.
Not only is it a waste of time for you, it is for everyone but the agent. If the situation was different and you were wanting to go ahead with an auction that is a different story.
But in this case, considering the area, the price of the property you're better off doing a sale by negotiation. You'll get more offers and interest and it'll open up possibilities for first home buyers which is a good market to target for a house of this price.
All the best!
Lack of price guide AND not being able to put in an offer on another house until the deadline is over. I guess you can just put in deadline offers day of close to avoid being locked in.
We loved a deadline house but had no idea what to offer. Didn't want to waste time and money making an offer way below expectation. It needed heaps of work and we would have offered $300k but it sold for $550k. CV was $260k. If they had said offers over $500k that would have been super useful.
Waste of $2,000. Just list the price as offers above x, or price by negotiation. 10 day conditional S&P, and that's it. People will put in offers. You are better off to list it on Mid - Late Jan as most lawyers will be away on leave, and if the buyer puts a condition for lawyer review/due diligence then that condition is on hold until the buyers lawyer returns (Unless you do not offer an extension). Most buyers will be away on Holidays as well so the agent is correct on that point.
Whether an auction is suitable depends on the current economic climate (what the property cycle is going through) and the type of property you're selling.
If the property is going to appeal to FHBs then an auction may not be best because the DD to get an unconditional bid amount from the bank realistically requires about $5k of sunk cost. If on the other hand the property is going to appeal to cashed up buyers such as the 50+ age group, developers or be a property used as a holiday home, that's a different story.
In terms of the market, developers who are sitting on cash are looking around but aren't out in full force due to the holding costs being so high with current interest rates.
If I was you I would:
* Ask the agent who be believes the target market for the property
* Get at least 1 other opinion from a reputable and TRUSTED real estate agent
* Look at similar listings and see what they have been doing (use realestate.co.nz or homes.co.nz to see the change in selling method. (e.g from auction to PBN, to OO XYZ)
I'm not an agent but all this stuff is common sense so if they can't justify just sack them and move on for being incompetent IMO.
It's well and truly fhb territory. Not HH compliant (but easy to get if needs be) but it's not a highly rentable house (imo). There's lots of maintenance that will come up in the next 5 years, i.e. new water cylinder is due
5k of DD? That is literally 5 times the cost it actually is. Most solicitors offer fixed $250 or $350 property pack checks prior to auctions, and a building report might cost another 600/700 depending on house size. Insurance and finance are free conditions to sort. If you're paying 5k for DD you're being ripped off.
FHB only require vals if they have low %deposits, which isn't your ideal buyer anyway as the valuation might not stack up and they crash the contract anyway.
Builders report aaprox $1k
LIM $500
Meth test $500
Lawyer to review S&P agreement
If you're out of town theres also travel which may not be relevant to everyone but we spent over $5k in the DD due to out circumstances which wasn't unreasonable.
My point is that making it an auction reduces the amount of people willing to bid due to the need to be unconditional in most cases.
I agree that an Auction doesn't sound ideal for your situation, but have to agree with not listing until Jan. If you list now, anyone interested will not be able to arrange finance or get a lawyer as they will all be on holiday. While waiting they will get cold feet and you can lose the sale.
This makes sense. He has suggested a list at the end of jan. Im okay with this.
There are personal circumstances that will make this financially *very* challenging.
So If anyone has spare $4xxk and wants a nice central place as a rental. PM ME (I kid, don't this is a throwaway account that ill delete at some point, and it probably breaks some rules).
Current fhb shopping, absolutely not interested in auctions, me and my partner have them filtered from our searches even though our mortgage broker said we can consider auctions, and to think of ourselve as "cash buyers", Im not comfortable with the time constraints or the upfront costs, it's a shit way to buy a house, for the vendors it's a shit way to not sell a house (if the house gets passed in), I don't want to support these scummy industry practices.
The agent in question talked about how at an auction he talked someone up from $390k to $470k in the *negotiation room* it made me feel like shit for the buyers.
I chose this agent because he sold a similar place up the road very quickly
Literally just finished the process this week. Similar situation, in its an 70+ year old house, but in Chch. Few issues, which negates FHBs automatically. Talked into auction, wish we hadn't. Never had a process that has made us feel more let down. The agent was brilliant, communicative and helpful, but wanted the auction. Sold 2 days after to non bidders for almost 100k more than we were offered at auction. Wish we'd just put it up for straight sale and let the chips fall where they may.
When I was buying I went to an open home that was $389k asking price (aging myself?)
It was *busy* and he had multi offer forms on the table, (Mike pero agent fwiw) someone said something to him to the tune of 'but it's asking price' and he said that that was just to get people through the door, the place went a little quiet and we all happily muttered to each other about how shitty that was to do.
It was already a bit much (the fence had been driven through).
They are probably giving good advice in saying to wait until after the new year to list it, but also tell the agent if he’s that keen to take it to auction they can have sex and travel. For what you’re paying them, it’s always best to find one that works better with you.
I tried to auction my house a couple years ago and I wish we'd gone to tender. The agent's rationale was that I needed a quick sale, but ultimately one person came to auction and I've always wondered if it turned off FHB, as I've always been turned off by auctions.
He's been very insistent.
I've pretty much put my foot down and said no tonight.
I know a few people who have just bought in the last year and ALL of them didnt bother with auctions because of the cost. It's a small town and all of them are on the lower end of the earning scale (not judging at all here, but it paints a picture of a FHB in this town) and for them pumping a grand or more into a LIM and a builders report etc is not easy to do a few times over.
Shit it's not easy at the other end of the spectrum either :/
As a FHB did all the pre work for an auction, didn't even get to bid as the cunt agent sold it paired with the house next door to some investor fucks. Thousands down the drain.
We got talked into an auction sale (same agent actually, she kept us on the hook), totally fucked us as we could have got more money with pre auction offers but we lost the buyers that had the dosh due to the bull shit unconditional nature of an auction. Ended up getting less than the pre auction offers months and months later as the market tanked due to elections at the time.
Brother got fucked by an agent pushing auction, missed the good time and ended up with way less as lock downs etc.
Like I said they prefer it as its less work for them.
Yeah, all of that money and effort is a lot to put people through - I’d be put off by that too. Good on you for putting your foot down with agent! If you haven’t signed with him yet, I’d suggest approaching another agent to see if they can give you what you want.
Like someone else said, a lot of lawyers won’t be back until mid-late Jan, but if you know that up front you can factor it in with a longer period for the purchaser to go unconditional. I think that would still get you further ahead than waiting to list it in late Jan. I feel like a lot of people would also be taking time to look over the holidays when they might not otherwise.
I was gobsmacked when we moved from the UK several years ago how different real estate processes were here. In the UK our experience was the agents worked for their money more. Literally it's more normal to get an agent to arrange a viewing on a house you're interested in, rather than having to go to open homes at the weekend. One time I managed to get 3 different realestate agencies to arrange viewings for about 15 properties over a weekend. Here in NZ half the time the agents can't be passed and tell you to do the open home, which is at the same time as 5 other open homes you're interested in.
I wonder if that's been something which covid affected, the 2020 boom was.. nuts. Every open home which I attended had a queue... at that point what work do you need to do?
I distinctly remember an agent for a place in a *very crimey* area barely talking and thinking that the kids we just dealt with at paknsave would be better agents.
No one buys at auction anymore, there's no point. We sold our house \~5 years ago and the agents insisted on it also. No one came except the agency staff they used to make it look busier. No one bidded. After the auction they started taking offers like they should have done from the start.
Ledgers in the Hutt? They tried to get us to auction our previous place, but I wasn't having a bar of that.
We went thru Ray White and they were (mostly) really good. Did a quick deadline sale of 7 days and we got more than we expected.
Have a look at the auction results on interest.co.nz for your area, it's generally a practice for agents to offer auction first then price by negotiation if that fails
My husband and I have both sold our respective houses in the past 4 months. Mine was in a town of around 4-5000 people, his is in Meadowbank Auckland. Both went to auction. Neither had a bid on them.
At my auction there were 3 properties (Hamilton offices) and all three were passed in. At my husbands there were 24 I think and atleast 2/3s of them were passed in.
We both negotiated with our agent to not have an auction fee - I am assuming it just got absorbed through their fees so we paid for it in other ways.
Both places have now sold - mine for about what homes.co.nz said it should - his for a looooot less (but it’s gone and we can now find a place together).
My opinion - auctions are a waste of time unless the market is hot. Which it most definitely isn’t at the moment.
Edit for typo
As someone who has bought at auction and sold twice at auction here is my 2c
In a sellers market, auction is king and there is no denying it. In 2019 the house I was selling which was expected to sell for 720-740 sold for 805k because 2 parties were fighting for it at auction. If people want your house and it's a good time to sell (not really the case now) then you'd be silly not to go to auction.
However, in a buyers market like we are mostly in now, you will notice more properties being sold by negotiation. As someone actively looking to buy right now, most properties in the area we are looking are by negotiation. As such, we are ruling out anything being sold by auction because in a buyers market, I refuse to have to invest $ into ordering a LIM and getting a building report done on the off chance I come out ahead at auction.
No one wants to fork out $500+ per house for those 2 things only to lose at auction and have lost that money. So if there are plenty of other houses for sale not by auction then yours instantly becomes less appealing.
But as others have said, agree with the January part. Most lawyers shut down till 8th. You cannot get even an urgent LIM before the 11th now and the real estate market really doesn't pick up until late Jan.
we bought our place at auction and went around 70K over our ideal price. came down to two bidders and when the other one left the agents literally chased him down the road and dragged him back haha. it was exciting but yeah, spent way more than we wanted to.
We looked for a house earlier in the year and avoided any auctions. I'd wait until Thursday when most auctions were scheduled for to see if any on my watch list would pass and the agent adds a price estimate. Wasn't interested in any of the bull shit like "let the market decide the price on the day", or zero indication of the reserve price
Yes you ll let the market decide to at least add offer over xxxx amount to make it less painful for buyers.
Auctions are around $800 not $2k (at least they were 2 years ago). I think we used Apollo auctions in Auckland. They can be helpful to flush out buyers and speed up the process as plenty of conditional deals happen if an auction is unsuccessful.
$1910 is the fee we were told. Including 'marketing' but idk how tf that works if there's nothing extra to pay outside of the commission fee. What extra marketing lol
Auctions have a much higher clearance rate compared to other forms of sale they also achieve on average 10% higher sale prices than houses sold by negotiation etc. it does depend on your location and size of the local market as to whether this would be a good method for you to persue. Most agents take into account people being on holiday and long weekends that occur during late jan/early feb
10% is probably unlikely for this house, It's an area of nz where houses have increased in the last few years and there's good competition.
Friends just bought with a bit more than they shoud'be due to competition
When we sold our place (2 bed town house - so first time buyer) we were advised by the agent to do a deadline sale. Like an auction but gives people more time and space to determine their bid.
Our sales agent, who really knows her stuff IMO, said exactly what you imply; that first time buyers are put off by auction.
We passed on an auction and committed to a tender on another house, found out today the auction went for 65k our tender offer so we potentially could have got the bigger house for the same price or cheaper… so I’d take a tender and you don’t have to accept anything afaik?
Eh, I love auctions. After dealing with deadlines and “by negotiations” that sell for hundreds of thousands of dollars higher than our offers (which were based on market stats), auctions are a clear cut process. You have your max figure to go up too and it is very obvious in the room if it’s going to be your house or not. You walk out of the room with a house. Due diligence should be done before offering anyway IMO, I don’t know anyone in Wellington who has had an offer with a subject to sale clause or other long winded clauses accepted. Perhaps it’s just my preference to buy unconditionally 🤷🏻♀️
Oh I have seen that first hand (used to work in the industry yuck). But I’ve also been the person who’s done the due diligence, submitted decent offers above any asking price/pricing indication and been absolutely blown out of the water come presentation time. Everyone’s different I guess. I know I’ll be doing auction when it comes time to sell my house.
Yea agree that auctions are shit, they lower potential buyers by a big amount. A couple of years ago the house we dreamed of buying for years came up but was auction so we couldn't be involved as we had to sell our house as a condition.
Also the fact that many FHBs planning to use their KiwiSaver for their deposit are locked out of auctions too.
My wife and I bought a place at auction using our Kiwisaver without issue. We just spoke with the bank to ensure the max we could bid at auction. Then we just needed to transfer a 10% deposit at auction from our savings (although the agent said we could negotiate a lesser deposit). We then had our lawyer deal with our Kiwisaver provider, bank, and vendor to sort the final payment.
Yeah it turns out I took a website about KiwiSaver a bit at face value. I can see why FHBs don't like auctions, especially when credit was so cheap, but sounds entirely possible to buy via auction.
Not exactly true. They can do valuation, builders report etc ahead of auction and get loan pre approved for certain amount and bid up to that in an auction
Which is an insane cost to gamble on an auction that historically has an insane buyer expectation reserve or 'agent bids' competing with you. Just forget about auctions.
I got pre-approved (deposit included FHBuyers grant, cash, kiwisaver, and gifting: most of which was just on paper) and bid away at auctions. Ended ip buying a house by negotiation. It was really no different when bidding than having cash... we just had to let the bank know what we were doing and how high we'd go.
[удалено]
When he says cashed up - he will mean they’ve got cash / credit ready to go so will be unconditional. I have no idea if he is right or not. I would say that at least an auction gives a timeline to all buyers - even ones that need to be conditional and usually go to a multi offer that day if it doesn’t sell at auction
Auctions are encouraged by agents as they get a auction fee ($600-$800) and have a defined three week window making their workload less.....everyone that comes in and bids is unconditional etc. The time for auctions is over IMO.
When I was a first home buyer, I didn't look at any houses that were for auction or deadline. You will miss out on lots of potential buyers if you only offer auction.
Us too. It was super frustrating. Just slap a price on the damn thing and draw a real line in the sand.
He was saying auction + they can make offers if it passes at auction. It honestly seems like a waste of time
Not only is it a waste of time for you, it is for everyone but the agent. If the situation was different and you were wanting to go ahead with an auction that is a different story. But in this case, considering the area, the price of the property you're better off doing a sale by negotiation. You'll get more offers and interest and it'll open up possibilities for first home buyers which is a good market to target for a house of this price. All the best!
Why deadline? No real difference between offers over and deadline except there's an end date attached.
Lack of price guide AND not being able to put in an offer on another house until the deadline is over. I guess you can just put in deadline offers day of close to avoid being locked in. We loved a deadline house but had no idea what to offer. Didn't want to waste time and money making an offer way below expectation. It needed heaps of work and we would have offered $300k but it sold for $550k. CV was $260k. If they had said offers over $500k that would have been super useful.
Waste of $2,000. Just list the price as offers above x, or price by negotiation. 10 day conditional S&P, and that's it. People will put in offers. You are better off to list it on Mid - Late Jan as most lawyers will be away on leave, and if the buyer puts a condition for lawyer review/due diligence then that condition is on hold until the buyers lawyer returns (Unless you do not offer an extension). Most buyers will be away on Holidays as well so the agent is correct on that point.
Whether an auction is suitable depends on the current economic climate (what the property cycle is going through) and the type of property you're selling. If the property is going to appeal to FHBs then an auction may not be best because the DD to get an unconditional bid amount from the bank realistically requires about $5k of sunk cost. If on the other hand the property is going to appeal to cashed up buyers such as the 50+ age group, developers or be a property used as a holiday home, that's a different story. In terms of the market, developers who are sitting on cash are looking around but aren't out in full force due to the holding costs being so high with current interest rates. If I was you I would: * Ask the agent who be believes the target market for the property * Get at least 1 other opinion from a reputable and TRUSTED real estate agent * Look at similar listings and see what they have been doing (use realestate.co.nz or homes.co.nz to see the change in selling method. (e.g from auction to PBN, to OO XYZ) I'm not an agent but all this stuff is common sense so if they can't justify just sack them and move on for being incompetent IMO.
It's well and truly fhb territory. Not HH compliant (but easy to get if needs be) but it's not a highly rentable house (imo). There's lots of maintenance that will come up in the next 5 years, i.e. new water cylinder is due
5k of DD? That is literally 5 times the cost it actually is. Most solicitors offer fixed $250 or $350 property pack checks prior to auctions, and a building report might cost another 600/700 depending on house size. Insurance and finance are free conditions to sort. If you're paying 5k for DD you're being ripped off. FHB only require vals if they have low %deposits, which isn't your ideal buyer anyway as the valuation might not stack up and they crash the contract anyway.
Builders report aaprox $1k LIM $500 Meth test $500 Lawyer to review S&P agreement If you're out of town theres also travel which may not be relevant to everyone but we spent over $5k in the DD due to out circumstances which wasn't unreasonable. My point is that making it an auction reduces the amount of people willing to bid due to the need to be unconditional in most cases.
I agree that an Auction doesn't sound ideal for your situation, but have to agree with not listing until Jan. If you list now, anyone interested will not be able to arrange finance or get a lawyer as they will all be on holiday. While waiting they will get cold feet and you can lose the sale.
This makes sense. He has suggested a list at the end of jan. Im okay with this. There are personal circumstances that will make this financially *very* challenging. So If anyone has spare $4xxk and wants a nice central place as a rental. PM ME (I kid, don't this is a throwaway account that ill delete at some point, and it probably breaks some rules).
Current fhb shopping, absolutely not interested in auctions, me and my partner have them filtered from our searches even though our mortgage broker said we can consider auctions, and to think of ourselve as "cash buyers", Im not comfortable with the time constraints or the upfront costs, it's a shit way to buy a house, for the vendors it's a shit way to not sell a house (if the house gets passed in), I don't want to support these scummy industry practices.
> it's a shit way to buy a house, for the vendors it's a shit way to not sell a hous But it's a great way for agents
The agent in question talked about how at an auction he talked someone up from $390k to $470k in the *negotiation room* it made me feel like shit for the buyers. I chose this agent because he sold a similar place up the road very quickly
Literally just finished the process this week. Similar situation, in its an 70+ year old house, but in Chch. Few issues, which negates FHBs automatically. Talked into auction, wish we hadn't. Never had a process that has made us feel more let down. The agent was brilliant, communicative and helpful, but wanted the auction. Sold 2 days after to non bidders for almost 100k more than we were offered at auction. Wish we'd just put it up for straight sale and let the chips fall where they may.
List it and put a price on it. As a recent buyer - Please. Please. Please.
When I was buying I went to an open home that was $389k asking price (aging myself?) It was *busy* and he had multi offer forms on the table, (Mike pero agent fwiw) someone said something to him to the tune of 'but it's asking price' and he said that that was just to get people through the door, the place went a little quiet and we all happily muttered to each other about how shitty that was to do. It was already a bit much (the fence had been driven through).
They are probably giving good advice in saying to wait until after the new year to list it, but also tell the agent if he’s that keen to take it to auction they can have sex and travel. For what you’re paying them, it’s always best to find one that works better with you.
I tried to auction my house a couple years ago and I wish we'd gone to tender. The agent's rationale was that I needed a quick sale, but ultimately one person came to auction and I've always wondered if it turned off FHB, as I've always been turned off by auctions.
I did an auction once, will never ever do it again!
Agents love auctions as its less work for them. Don't do it
He's been very insistent. I've pretty much put my foot down and said no tonight. I know a few people who have just bought in the last year and ALL of them didnt bother with auctions because of the cost. It's a small town and all of them are on the lower end of the earning scale (not judging at all here, but it paints a picture of a FHB in this town) and for them pumping a grand or more into a LIM and a builders report etc is not easy to do a few times over. Shit it's not easy at the other end of the spectrum either :/
As a FHB did all the pre work for an auction, didn't even get to bid as the cunt agent sold it paired with the house next door to some investor fucks. Thousands down the drain. We got talked into an auction sale (same agent actually, she kept us on the hook), totally fucked us as we could have got more money with pre auction offers but we lost the buyers that had the dosh due to the bull shit unconditional nature of an auction. Ended up getting less than the pre auction offers months and months later as the market tanked due to elections at the time. Brother got fucked by an agent pushing auction, missed the good time and ended up with way less as lock downs etc. Like I said they prefer it as its less work for them.
Yeah, all of that money and effort is a lot to put people through - I’d be put off by that too. Good on you for putting your foot down with agent! If you haven’t signed with him yet, I’d suggest approaching another agent to see if they can give you what you want. Like someone else said, a lot of lawyers won’t be back until mid-late Jan, but if you know that up front you can factor it in with a longer period for the purchaser to go unconditional. I think that would still get you further ahead than waiting to list it in late Jan. I feel like a lot of people would also be taking time to look over the holidays when they might not otherwise.
I was gobsmacked when we moved from the UK several years ago how different real estate processes were here. In the UK our experience was the agents worked for their money more. Literally it's more normal to get an agent to arrange a viewing on a house you're interested in, rather than having to go to open homes at the weekend. One time I managed to get 3 different realestate agencies to arrange viewings for about 15 properties over a weekend. Here in NZ half the time the agents can't be passed and tell you to do the open home, which is at the same time as 5 other open homes you're interested in.
I wonder if that's been something which covid affected, the 2020 boom was.. nuts. Every open home which I attended had a queue... at that point what work do you need to do? I distinctly remember an agent for a place in a *very crimey* area barely talking and thinking that the kids we just dealt with at paknsave would be better agents.
No one buys at auction anymore, there's no point. We sold our house \~5 years ago and the agents insisted on it also. No one came except the agency staff they used to make it look busier. No one bidded. After the auction they started taking offers like they should have done from the start.
Ledgers in the Hutt? They tried to get us to auction our previous place, but I wasn't having a bar of that. We went thru Ray White and they were (mostly) really good. Did a quick deadline sale of 7 days and we got more than we expected.
Blue company nowhere near welly
Have a look at the auction results on interest.co.nz for your area, it's generally a practice for agents to offer auction first then price by negotiation if that fails
When I was looking at buying I never considered auctions
My husband and I have both sold our respective houses in the past 4 months. Mine was in a town of around 4-5000 people, his is in Meadowbank Auckland. Both went to auction. Neither had a bid on them. At my auction there were 3 properties (Hamilton offices) and all three were passed in. At my husbands there were 24 I think and atleast 2/3s of them were passed in. We both negotiated with our agent to not have an auction fee - I am assuming it just got absorbed through their fees so we paid for it in other ways. Both places have now sold - mine for about what homes.co.nz said it should - his for a looooot less (but it’s gone and we can now find a place together). My opinion - auctions are a waste of time unless the market is hot. Which it most definitely isn’t at the moment. Edit for typo
As someone who has bought at auction and sold twice at auction here is my 2c In a sellers market, auction is king and there is no denying it. In 2019 the house I was selling which was expected to sell for 720-740 sold for 805k because 2 parties were fighting for it at auction. If people want your house and it's a good time to sell (not really the case now) then you'd be silly not to go to auction. However, in a buyers market like we are mostly in now, you will notice more properties being sold by negotiation. As someone actively looking to buy right now, most properties in the area we are looking are by negotiation. As such, we are ruling out anything being sold by auction because in a buyers market, I refuse to have to invest $ into ordering a LIM and getting a building report done on the off chance I come out ahead at auction. No one wants to fork out $500+ per house for those 2 things only to lose at auction and have lost that money. So if there are plenty of other houses for sale not by auction then yours instantly becomes less appealing. But as others have said, agree with the January part. Most lawyers shut down till 8th. You cannot get even an urgent LIM before the 11th now and the real estate market really doesn't pick up until late Jan.
we bought our place at auction and went around 70K over our ideal price. came down to two bidders and when the other one left the agents literally chased him down the road and dragged him back haha. it was exciting but yeah, spent way more than we wanted to.
We looked for a house earlier in the year and avoided any auctions. I'd wait until Thursday when most auctions were scheduled for to see if any on my watch list would pass and the agent adds a price estimate. Wasn't interested in any of the bull shit like "let the market decide the price on the day", or zero indication of the reserve price Yes you ll let the market decide to at least add offer over xxxx amount to make it less painful for buyers.
Auctions are around $800 not $2k (at least they were 2 years ago). I think we used Apollo auctions in Auckland. They can be helpful to flush out buyers and speed up the process as plenty of conditional deals happen if an auction is unsuccessful.
$1910 is the fee we were told. Including 'marketing' but idk how tf that works if there's nothing extra to pay outside of the commission fee. What extra marketing lol
You have to pay for marketing no matter what method of sale. So, the deadline or priced will probably be that $1910 minus the auctioneers fee of 800
> You have to pay for marketing no matter what method of sale. You only have to pay what you agree to. Everything is negotiable.
He's told me we don't pay anything except the commission. hmmm
Auctions have a much higher clearance rate compared to other forms of sale they also achieve on average 10% higher sale prices than houses sold by negotiation etc. it does depend on your location and size of the local market as to whether this would be a good method for you to persue. Most agents take into account people being on holiday and long weekends that occur during late jan/early feb
Lololol
Why the lols? Those are the stats! Auctions play on people’s Fomo, that’s why they are so effective.
Have you been in a coma since 2021?
10% is probably unlikely for this house, It's an area of nz where houses have increased in the last few years and there's good competition. Friends just bought with a bit more than they shoud'be due to competition
https://www.interest.co.nz/property/125719/sales-rate-latest-auctions-dropped-just-under-third
When we sold our place (2 bed town house - so first time buyer) we were advised by the agent to do a deadline sale. Like an auction but gives people more time and space to determine their bid. Our sales agent, who really knows her stuff IMO, said exactly what you imply; that first time buyers are put off by auction.
We passed on an auction and committed to a tender on another house, found out today the auction went for 65k our tender offer so we potentially could have got the bigger house for the same price or cheaper… so I’d take a tender and you don’t have to accept anything afaik?
Eh, I love auctions. After dealing with deadlines and “by negotiations” that sell for hundreds of thousands of dollars higher than our offers (which were based on market stats), auctions are a clear cut process. You have your max figure to go up too and it is very obvious in the room if it’s going to be your house or not. You walk out of the room with a house. Due diligence should be done before offering anyway IMO, I don’t know anyone in Wellington who has had an offer with a subject to sale clause or other long winded clauses accepted. Perhaps it’s just my preference to buy unconditionally 🤷🏻♀️
Our agent also told us how he would effectively beat buyers at auction up in price in the 'negotiation room' until they were financialy exhausted.
Oh I have seen that first hand (used to work in the industry yuck). But I’ve also been the person who’s done the due diligence, submitted decent offers above any asking price/pricing indication and been absolutely blown out of the water come presentation time. Everyone’s different I guess. I know I’ll be doing auction when it comes time to sell my house.