Updates 14/06/11 ! Lost the bid in auction !!! urgent help needed !!

ysun062

I am keen to buy this property, but its auction.
I know alot of property get sold prior to auction, so i thought i must be quick, hence I arranged the finance pre-approval and told the listing agent that I want to make an pre-auction unconditional offer.

but the agent told me, once I make the offer, two things can happen, the owner will either accept or decline.(the owner can not counter offer!!) If declined, then it will go on auction as usual, if accepted, the agent will bring the auction forward by a week, and start the bidding at amount I offered for !

After the agent told me all these thing, I thought - if thats the case, whats the point of making a pre-auction offer ?! the best thing i can achieve is to bring the auction forward by a week and force the starting bid to be at the price I offered for ! that is not a good situation for the buyer surely !

Anyone is familiar with real estate can provide some advice here ?

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Here is the complete story, I did not give a pre-auction offer, and last saturday the listing agent told me a pre auction offer is made by someone else and the auction is bought forward by a week, which is Today !!!

So I went to the auction, and the starting bid is at 686k and the house is on market (so the owner has agreed with 686k). I set my limit to 710k, so I thought I have a great chance, and the bidding started....

below 700k, there were 4 bidders,, and after 700k, there were two bidders remaining, me and this white guy... and each time i took time to decide how much to offer, sometimes by $1000, $500, $2000, i take about 2 minutes to decide each round,, and once i made the decision to up the bid, the white guy counter bid without thinking,, he dont even think.... just increase the bid immediately,,

so this go on to 725k, and he won the bid,, (i gave up at 724k). And we I leave the place, i meet eyes with the white guy,, he dont look happy at all....

http://www.trademe.co.nz/property/residential-property-for-sale/auction-380683962.htm

have a look at the property if you interested.... what do you guys think ?

狂风暴雨

Blame your agent, he/she is s***t, owner can always cancel the auction, he/she just wants more money! Anyway it`s his business, u cant stop him.

ysun062

Blame your agent, he/she is s***t, owner can always cancel the auction, he/she just wants more money! Anyway it`s his business, u cant stop him.
狂风暴雨 发表于 2011-6-10 09:36

Yes, I wasnt happy with the agent, had a long talk with him over the phone, he said he and his company always wanted to protect the interest of the owner, which is fair enough,, but I always thought if the buyer and seller are happy with the price, surely the property do not have to go on an auction..

Not happy about this at all !!! maybe he and his "bigfoot" company just want to make the auction fee, which is about $1000 something

And you are right, I cant stop him,, I and only eat well on the auction day and fight it over with blood !!!

ybbest

I assume the owner has already paid for the auction fee,so it does make sense to the owner.

AMD166

shame on the agent

阿海

Barfoot has a fairly standard policy on auctions, which is:
1) to accept any pre-auction offers, and bring the auction forward, as early as 3 days after acceptance from experience
2) auction starts at the accepted price
3) this puts the buyer in a vunlerable position

The vendor has already paid the auction fee, so unless your price is very attractive, AND that he needs to sell quickly, there is no benefit for him to accept your offer.

The agent is always working for him/herself, then for the vendor, then you.  So at the current market, if the property you are looking at is nicely presented, ie tidy, staged, nice layout, good indoor out door, good location etc, then there would be competition, and the agent and vendor will expect it to sell on auction day.

As for you, well you can always try making the offer, except that you can demand that the offer is accepted, then all registered interesting parties have 3 days to make their offer. Your offer remains confidential and this will lead to a multi-offer situation. However, I doubt the agent will do this for you, as this will put the vendor at a slightly disadvantaged situation.

You can't blame the agent in this case, he's doing his job, which is to:
1) sell the property at best possible price
2) keep vendor happy to get referals and repeat business

My experience is that Raywhite and other non-BF real estates are more flexible in pre-auction offers.

PQNZ

这种心态下，十有八九都要多付不少钱。。。。。。。。

阿海

Some tips if you are going to auction:
1) write your maximum offer in your palm, and do not ever exceed it!
2) if your maximum offer is an even number, ie $500,000, then put up your offer at even numbers, ie $400k, 420k.  If you put up your offer at odd number, then the next bidder will come in at even number, then they can come in at your maximum,  say you put up $490k, the next bid is $500k, which reaches your maximum...
3) when no one is bidding, and the auctioneer raises his hand and put up the price on behalf of the vendor, that's called a vendor bid.  If you are the top bidder, and everyone else except the auctioneer have stopped bidding, stop your bid even if the auctioneer puts up vendor bids.
4) when the auctioneer asks you to put up more (while no one else is putting their hands up), shake your head and don't raise a cent.
5) at the end of the auction, if you are the top bidder and your bid has not reached the reserve, you will be negotiating with the auctioneer.  Be firm on your price, look at the maximum you can pay. If the vendor's counter offer exceeds your maximum, then be firm and say no.    At some point the after-auction negotiation will end if no agreement is made, and the auctioneer/agent will contact any other bidders (if they are still around lol). If no one else is bidding, the auction comes to a close.  At this point you can put in an offer with what ever conditions you have, and restart the negotiation process on your own terms.

ysun062

Barfoot has a fairly standard policy on auctions, which is:
1) to accept any pre-auction offers, and bring the auction forward, as early as 3 days after acceptance from experience
2) auction starts  ...
阿海 发表于 2011-6-10 10:25

Thanks for the in-depth explaination. I agree with you that if this is the process Barfoot is using, then it is ok, as long as it is consistent !

However from buyers perspective, I would say that it will be stupid for buyer to give an offer before the auction with Barfoot's rule. There is no advantage for the buyer at all.

阿海

Yes exactly, if you hurry and put in an offer before auction, the agent can see you are desperate, and that will work against you.

Unfortunately the whole auction process is rigged in favour of the agent and the vendor, and you can only do so much to limit that advantage.

That is why auctions work so well in hot markets...

As an investor, the best strategy for auctions is not going to auctions, ie contact the agent the day or week after the auction has concluded.  However, you are looking for your home, so this is not a good idea...

ben4

Some tips if you are going to auction:
1) write your maximum offer in your palm, and do not ever exceed it!
2) if your maximum offer is an even number, ie $500,000, then put up your offer at even nu ...
阿海 发表于 2011-6-10 10:43

UoUOUoUoUOUppp

ysun062

Yes exactly, if you hurry and put in an offer before auction, the agent can see you are desperate, and that will work against you.

Unfortunately the whole auction process is rigged in favour of the ...
阿海 发表于 2011-6-10 11:05

I will definitely go to the auction, this is for my family, so have to go and battle it out i guess.

The property is like a hot hot hot property, so i think it'll definitely sell on the auction day.

阿海

Good luck!

ysun062

Some tips if you are going to auction:
1) write your maximum offer in your palm, and do not ever exceed it!
2) if your maximum offer is an even number, ie $500,000, then put up your offer at even nu ...
阿海 发表于 2011-6-10 10:43

Thanks for those tips mate !! A question for u 阿海....

I actually think up a strategy last night,, dont know if its good or not, here it is:

lets say the property Government valuation is 750k, and the property is so hot hot hot hot, hundres of people turned up to open home, and my bottom price is 800k (and i think others will be the same, 800k is like a line of defence and people dont want to go cross that)

So on the auction day, when the auctioner ask for "who likes to start", I will shout out first, 790k, so if i do that, it will send a killer blow to every other buyer, they will think if they want to bid, it have to be 800k, and they will think this guy (me) is going to get this property no matter what, then they will give up bidding..

Or if there are people bid for 800k, then I will walk away from the action immediately and give up..

What do you think of this tactic ? will it work ?

阿海

Personally I would wait till $790 then put $800k myself, and if someone bid higher I will walk away.
发送自我的iPhone天维网应用。

阿海

If you put $790k there is a chance no one bids and u over pay, or someone just over bid u in heat of moment. Best to wait till end
发送自我的iPhone天维网应用。

ysun062

Personally I would wait till $790 then put $800k myself, and if someone bid higher I will walk away.
发送自我的iPhone天维网应用。
阿海 发表于 2011-6-10 12:08

hmmm,,, good point,, good point,... i will try that...

庆儿

不要举那么早的手, 如果你真想买. 这样只能使价格更高.

newspaper_44

好贴。。。学了不少！

校草

干吗都要用英文呢- - 。。。。

阿海

LZ直接问英文的那就直接回答英文好了，免得翻译过来出错误导人就不好了。

peggy64

是barfoot的中介吧，barfoot有规定的，除非你当初看房的时候就你是唯一在list上的，没有第二个人看过这房子。如果这样就不需要AUCTION了，房东接了就是你的房子了，但是你现在的情况就是有其他买家，所以其他买家可能会出的比你高，所以还是会auction。当然如果房东不接你的offer一样是要去AUCTION的，

peggy64

当初我买房的时候也一样，去看AUCTION的房子，还是唯一的最早看的，所以没其他人看过，我直接出OFFER，房东不接，最后还是到AUCTION。不过A的时候真的很多人抢，因为房子好，所以房东相信肯定卖的出。出PRE-AUCTION OFFER只不过是探探路，让你知道房东可能的心理价位，当然房东本身也可以更多的了解一下市场。

阿海

总之进了auction room就保持理智，别意气用事拍高了。

未来3年利息会奔8%，考虑好以后还款能力，量力而为。。。

PS: 个人鄙视fake phone bid, vendor bid & agent-at-the-back-of-room-where-no-one-can-see-bid.

harcourts.james

我的建议，如果非常喜欢就试探性的出个pre auction offer, 拿到的可能性一般都很小，除非屋主非常着急出手. Auction day 你最好要么一开始就勇敢直前，快速和所有其他的竞拍者争抢，以此显示你的志在必得，要么就一直等到最后，直到其他的竞拍者
发送自我的iPhone天维网应用。

harcourts.james

都掩旗熄鼓，你就在最后的竞拍价上加上500刀
发送自我的iPhone天维网应用。

一曰方茗

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