Thread: Well the house is finally on the market!

Well Big jon, I guess research is your friend in that case if you do not believe Auction is your friend.
Not in all cases as I have said many times.

In many auctions also, if a reserve is not met, negotiations often take it that next level.

This is my experience from being in the trade.

Don't even get me started on reservse not being met at auctions!!

I recently attended an auction in the Adelaide Hills.
My partner (now wife) had emailed the agents to find out some idea of a sale price. They said low 4s, meaning low $400 000s. I took that to mean under $450 000. I realise that is just a guide and nothing to hold them to. An auction will run it's course.

During the course of the auction bidding stalled (it wasn't vigourous to start with) and the agent took the vendor aside to talk to them.
Bidding began again and stalled again.
Once again the agent talked to the vendor.

Eventually the property was deemed to be on the market and then sold (sommewhere around $465 000 from memory).

My issue here is with the reserve price on the day.

We had written information from the agent that they expected the price to be in the low $400 000s.
On the day we saw the agent confer several times with the vendor when bidding was stalled at a low price. Clearly the agent was trying to convince the vendor that the property wasn't going to sell for a high price, even though they must have told them it would (as evidenced by the high reserve).

One can only surmise that the agent lied to us and the vendor. They told the vendor it would sell for a high price to get them signed up and they told us it would sell for a low price to get us to turn up.

Then they could take the vendor aside and tell them that the market was saying the property was overpriced. The only reason people were expecting a sale price in the low $400 000s is because the agent told them (us)!

Clearly this agent was A: incompetent and B: dishonest.

The worst thing is that this is not an isolated incident. I am convinced it happens at many (possibly most) auctions.

Once again,

Good agents don't auction houses!

Yes that does happen.
Once the vendor says the property is on the market however, the bidding does often hot up.

I do agree with you its not for everyone and thats for sure but a demand property one be silly not to auction.

Some agents are rogues, no doubt about that.

I do believe you had some bad experiences but its not the general conseses.
Many do a great job and for those that do build a great relationship and prosper.

I went to an auction lately where price guide was 1.1mil in Prospect.
The property later sold at auction for 1.45m.

On the 1st open I did mention to the agent that the property is way undervalued and that sort of behaviour has been made illegal now and he should change the price guide.
I also mentioned I will call OCBA and see what gets done because I am also sick of that sort of playing with 2 decks of cards if you will.
In other words I hear what you are saying but its not black and white.

Originally Posted by big guy

I do agree with you its not for everyone and thats for sure but a demand property one be silly not to auction.


I do believe you had some bad experiences but its not the general conseses.

I went to an auction lately where price guide was 1.1mil in Prospect.
The property later sold at auction for 1.45m.

Why? If the demand is there then a good negotiator (which a good agent will be) will get the highest price.

I didn't have a bad experience. I thoroughly enjoyed being there and laughing at the agent. When you know what is going on it is hilarious to watch.

My question still stands... If there had been a good agent involved what would the sale price have been? 1.5 million, 1.6 million? Could well have been the case and the purchaser could have scored a bargain.

I give up.

Well, as an agent of some 20 years who IS an auctioneer, but who SELDOM does auctions these days, I take great offence at being labled a liar and a cheat. I don't know what Bigjon does for a living but I'm guessing that he SELDOM if EVER works a 70 hour week.... many agents DO. I'm also guessing that he has always received a SALARY.... most agents DO NOT(Most receive a retainer which is repaid to their employer against commissions).
It does amaze me though that so many people think so poorly of agents, and say how easy it is (just run a few ads, stand up and yell at the people...how hard is that....) yet most of you will call us when you want to sell your most valuable asset! I guess that the opinions expressed publicly about agents are like those on forums such as this, the bad side predominates the good. When is the last time someone at a dinner party started a conversation about how GREAT their agent was?
I'm being taken out for dinner this week by a client who is delighted with what I was able to achieve for him. I'm going out the following week with another happy client.
I'm not as rare as this thread may indicate, there are thousands of very good agents out there who get great results (auction or not) for their clients....and they work bloody hard for what they get.
Saying that ALL, or MOST agents are dishonest is like saying that all teachers are crap, that all doctors are ripping off the system, it is STUPID and frankly Bigjon, so are you.
Now I'll get of my soapbox and won't return to this thread

I am sure there are good agents out there.

My standard working week is 70 hours. Where I have been working recently my working week has been 84 hours.

I don't think working on a commission basis is a good idea or an excuse for any business practises.

Yes, most people use an agent when selling their house. My point is the evidence seems to be that many people have a bad experience while doing so and it is only the fact that most people only go through it once a decade or so lets the system keep "working" the way it has.

Funnily enough I have sat through discussions on forums that have had a red hot go at mechanics (I used to be one) and teachers (my wife is one) and I haven[t had to go on the attack to defend my position.

I don't resort to yelling (upper case) or personal attacks (calling people stupid).

Methinks that someone is taking some comments particularly personally, perhaps because they don't like the mirror of truth being held up?

Ken,

Glad to see the plans are progressing well and QLD is calling! We have just sold (prior to auction) and are happy with the price. Heading off to sunny Redesdale at the end of June to plan our acres.....

Is exciting. Is Alex stoked?

Chris