Why Auction? Why Private Treaty / EOI

Andrew Blaxland from R&W Mosman & Neutral Bay talks briefly about Auction and Private treaty in today’s market.
If you would like to ‘dig a little deeper’ and discuss further, call andrew on 0416060126 or email andrew@rwm.com.au

3 thoughts on “Why Auction? Why Private Treaty / EOI

  • We saw this practice of auctioning years ago on an HGTV show. To me it’s a lot fairer than what’s going on in Toronto’s (Canada) market. We have these ridiculous bidding wars in high demand areas; the house is put on the market at a low price and then people who want it make closed offers (only the seller knows all the offers). The seller can take an offer or send it back for a better offer. It leads to an extremely inflated market. A house on our street was on for $750,000 which was reasonable considering there were some updates to be done, sold in a bidding war for $950,000. What’s even more shocking is that the new owners gutted it probably adding another half million to their costs!
    Auctioning is more fair because you can see the other bids and decide if you wish to participate in the frenzy. Bidding wars bread a certain desperation and the bids get out of control.

    • Hi Eva,
      thanks for your comment. In Sydney, the popularity of Auction varies with buyers, depending on how the market is. At the moment the market is a little sluggish, so buyers are happy to go to an Auction to perhaps pick up a bargain. When the market was bullish prior to the GFC, buyers were complaining about having to attend an auction to buy property regardless of the transparency of it all…. I know if I was selling my home today I probably wouldn’t bother with an auction.
      Cheers
      Andrew

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