This article states the buyer for a property in Annandale traded bids with the auctioneer who made vendor bids, pushing the price higher from $5.2 to $5.65 million. I was under the impression you were only allowed 1 vendor bid in NSW or has that changed now?
https://www.smh.com.au/property/news/buyer-who-fell-in-love-…
Only idiots bid against the vendor, its basically bidding against yourself.
I have never understood this… this is basically bid padding.
If I was bidding on a property and there was a vendor bid, I would just walk out.
Walk out and buy the other warehouse conversion in Annadale on the exact same location and the exact same design? In the premium Sydney market, you're not just buying a property, you're buying the fact that somebody is actually giving you the opportunity to buy the house and land in a suburb you specifically want to live.
There's always going to be another house for sale.
Of course, there's houses for sale every week, but is it the want you want to buy? When prices are going up you are losing $ every week by reducing your purchasing power. In this case, the price was ~9% more which is price growth that is easily achieved in a year. $450k is $8,600 a week plus time until they find another property they want to buy.
@star-ggg: I missed out on several houses during my property buying adventure. In the end I bought a much better house on my terms for a really good price. Sometimes you just have to be patient and willing to walk away.
No, wait for them to call you, as you were the only one bidding and willing to pay for it.
it may be a miscommunication or misinterpreatation by the journalist. you can bid against yourself multiple times if the reserve hasn't been reached, or be in post-auction negotiation which is still an auction sale
when i was selling i set the reserve low to get people excited but used the VB as the actual reserve mechanism
lol they're useless
The buyer kept raising the bid until the reserve was met.
that makes more sense
If I am the last bidder and got this - immediately will walk away. Let vendor arrange new action with desired price range :)
Have you ever been in that position before?
You do not walk away when you are nearly at the finish line.
I think there will be plenty of other $5M properties to choose from, on my terms.
Yes, there are many properties to choose from
but
You went to an auction for a house - spent time getting a sale contract, had it reviewed by a solicitor, likely did a pest and building report, might have got a bank cheque unless you are sitting around with a chequebook, got a pre-approval, visited the house you wanted to buy a few times, did you research around the area …. yet walked away from this potential win.
Reminds me of those guys in sports who celebrate too early, yet lose right at the finish line.
@TheMindsetTraveller: If you think all those things you mentioned cost $250k (at least) you're welcome…
You will just let it pass in instead.
My idea of chaotic good would be to continue to allow vendor bids.
But if it passes in on a vendor bid, then the vendor is to pay the state the stamp duty as if it was purchased by the vendor at that price.
Run the gauntlet to either increase the sale price, or have to pay a substantial tax.
Oh I like this. But what is your suggestion for when the vendor bids are below or within the guide price?
I'll be honest, I've only thought the idea through as far as my comment
Well, what are we waiting for? This has legs. Let’s grab a pint and sort this out
Poor journalism because it is clearly articulated at the auction that there is only one vendor bid - this is the law, with no exceptions.
I was at an action for a house that had to be sold on the day due to divorce. I was hoping to be the only bidder and have it pass in, then negotiate. This other person was too keen and bid against himself on the insistence of the auctioneer.
In the end he paid about $50k more than it was worth at the time. He's probably laughing now though with the increase in property prices.
5.6 million for a home, holy beejus. And I assume anyone buying it is counting on the value going up to more like 8 or 10 million by the time they sell.
I'd show up to auctions wearing shabby, worn out clothing, and I'd ask the vendor for a tenner for the bus home before bidding begins.
In NSW you get one vendor bid.
https://www.fairtrading.nsw.gov.au/housing-and-property/buyi…
Oh the article is from SMH, might as well be Tom in year 8. Utter trash.
Jesus, monthly mortgage on $5.65m is about $36k….
People buying this usually have full cash or borrow a small portion.
If the vendor bid more than me and me only I would stop bidding. If they won, they would then have to come back to me.