Jump to content
House Price Crash Forum
Sign in to follow this  
Smell the Fear

Auction Results

Recommended Posts

Auction results

Not sure if you are aware of this, but it is of some interest in feeling the market. Where else can you see the results of a few hundred attempted sales of property on one day? Seems to be spread across the country, so there's something for everyone in there. I'm sure there must be many other auctioneers who publish results online.

There are a large number of properties failing to reach reserve price - can we conclude that auction buyers are getting cold feet as well, or are vendors setting unrealistic reserves? It seems to be a reflection of the wider market in this regard - i.e. properties not shifting.

A question occurred to me whilst looking at the results - quite a few auctions fail to reach the reserve price, but come very close - within a few k.

I'm assuming that those bidding are unaware of the reserve price at the time of bidding - is this correct? Also, have vendors ever been known to bid themselves or use a plant to urge the price up close to the reserve in the hope that someone will step over the "reserve line" and be committed to buying? The vendor/plant would be safe in the knowledge that they know the reserve price, won't go over it, and hence won't be left holding the baby if their scam doesn't produce a genuine buyer.

Share this post


Link to post
Share on other sites
Also, have vendors ever been known to bid themselves or use a plant to urge the price up close to the reserve in the hope that someone will step over the "reserve line" and be committed to buying? The vendor/plant would be safe in the knowledge that they know the reserve price, won't go over it, and hence won't be left holding the baby if their scam doesn't produce a genuine buyer.

Not only that, but the auctioneer is also perfectly within his rights to invent fictitious bids in an attempt to jack up the price of something if the reserve has not been met! :o:o:o:o:o:o

http://www.residentiallandlord.co.uk/feature11.htm

If you go with a partner, sit together as it is been known for husband and wife sitting in different corners to bid against each other. Be aware too that the auctioneer, vendor or their agent can bid up to the reserve price without identifying themselves. It is called ‘off the wall’ or ‘imaginary’ bidding and it is perfectly legal.

It's a ****ing scandal in my opinion.

Share this post


Link to post
Share on other sites
Not only that, but the auctioneer is also perfectly within his rights to invent fictitious bids in an attempt to jack up the price of something if the reserve has not been met! :o  :o  :o  :o  :o  :o

http://www.residentiallandlord.co.uk/feature11.htm

It's a ****ing scandal in my opinion.

Thanks for clearing that up - confirms my worst suspicions. At heart, 99% of us (humans) are complete scum.

Share this post


Link to post
Share on other sites

I'm curious about auctions: if something is advertised with "income of £x" does that mean there's a sitting tenant? Can you buy it, give them the notice/let their lease run out and then move in yourself? Surely tenants should be informed if their flat is changing hands?

Share this post


Link to post
Share on other sites

An auctioneer got caught out doing that on a TV programme .T'was funny when he had to explain why he hadn't actually sold the property. PMSL :lol:

Share this post


Link to post
Share on other sites

Lot 133 lost out by just £1.5k. You'd be gutted if you were the vendor wouldn't you?

Do property auctions not have 'auctioneers discretion'? The 10% thing.

Share this post


Link to post
Share on other sites
Lot 133 lost out by just £1.5k. You'd be gutted if you were the vendor wouldn't you?

Do property auctions not have 'auctioneers discretion'? The 10% thing.

Quite often they are 'sold after' the auction when the auctioneer negotiates with the vendor and the final bidders (or anyone else that's interested) and tries to finalise a deal maybe slightly below the reserve.

Often happens at car auctions as well.

Some of the comments on here though seem to forget that the auctioneer is acting for, and being paid by, the vendor not the purchaser!

Share this post


Link to post
Share on other sites

I have bought several properties in the past by submitting a pre-auction bid with a seven days notice for acceptance and a condition the property is withdrawn from Auction.

It has worked for me in the past and I would think that todays climate would make that method even more of a dilema for someone selling at Auction. The choice is take the money on the table today, or risk taking nothing in four weeks time.

The agents only want to achieve a sale and will in most cases advise the client to accept the offer. Many of the guidline prices you see are a carrot to get you in the reserve is often 40% more than the guidline, but pre auction bids call their bluff as they dont have the power of numbers or the percieved power of numbers to push the price up.

Share this post


Link to post
Share on other sites

Not been to a property auction before - but been to a "bankcrupt stock clearance auction"

What a scam it is!

The bait is a leaflet through the letter box claiming this auction where you can pick up TVs, Video cam recorders, playstations for £20 - wow sounds amazing and exciting.

I went to find out what the fuss was about. On the day....

It was held in the town hall. There are bouncers at the door and a slick man in a suit who does the talking wearing a mike round his neck.

There are tons of people queuing and hour before the start time - must have been the talk of the town.

Once finally in more bouncers in red tops.

Then the auction starts with some teasers - a video cam recorder is sold for £20 after about 5 minutes of discussing its features.... Course everyone sticks up their hand - first hand to go up gets it... (no bidding). I am right at the front - i stick up my hand before everyone else - course he doesnt see it, and the winner goes to an old man..

Then a walkman is sold for £5 - in the same way; this might be geniunine.

Other items are sold, for ridiculously low prices, but somehow he cant see me???

Now heres the good part - he has many sets of gold watches all each at £20. Anyone who is not serious about bidding for more items should leave now. Otherwise they must buy one of the watches to show they are serious. A few people start to leave - and the rest of us buy a watch...... <_<

He tells us we shouldnt open the watch case - because we should trust him. And with the bouncers around - I wouldnt do anything we werent told to.

The watch is rubbish - probably only worth £3, and can be picked up at a jumble sale(!)

The slick host then puts all the £20s from the resulting sale into a bin liner - and as a mark of generousity says he will GIVE IT AWAY to the first person who sticks up their hand....Just like piggies we cheerful do this...

The winner is a young girl probably only 17... <_<

The plot thickens...

Next lot are these aluminium brief cases, which he claims to contain things like cameras, CD players etc that are worth over £100.. Again if you are serious about bidding further you should buy one if not leave now - I thought it was the right time to leave (!) The first buyer of these boxes must have been a plant - to get the crowd to buy.. It was £100 to buy a aluminum brief case, which may have containing anything from kruggerands to er rocks... :huh:

This was a few years ago - I dont know if they are still doing the circuit scamming people; but they must have made a great deal of money. I have also seen them at jumble sales in a mobile trailer doing the same thing - but not as crowd drawing as it is outside.

Edited by trev

Share this post


Link to post
Share on other sites
I'm curious about auctions: if something is advertised with "income of £x" does that mean there's a sitting tenant? Can you buy it, give them the notice/let their lease run out and then move in yourself? Surely tenants should be informed if their flat is changing hands?

'sitting tenant' is a term used to describe a tenant that has rights over a property and no intention to give up those rights. The rent is usually low and the tenant is often old as the tenancy may have started long ago when laws were different.

If a place has tenants on an Assured Shorthold Tenancy (AST), then the tenants can be asked to leave with proper notice and in accordance with their lease. But because you don't know the tenants, it is difficiult to know whether they'd leave without a fuss or not. Also, the owner may be selling because they have difficulties with the tenant although that is probably not normally the case.

So yes you can buy it with an AST tenant & give them notice after you own it.

But the fact is that it is much better to buy a place with vacant possession especially if you're buying somewhere to live in yourself.

Share this post


Link to post
Share on other sites
'sitting tenant' is a term used to describe a tenant that has rights over a property and no intention to give up those rights. The rent is usually low and the tenant is often old as the tenancy may have started long ago when laws were different.

If a place has tenants on an Assured Shorthold Tenancy (AST), then the tenants can be asked to leave with proper notice and in accordance with their lease. But because you don't know the tenants, it is difficiult to know whether they'd leave without a fuss or not. Also, the owner may be selling because they have difficulties with the tenant although that is probably not normally the case.

So yes you can buy it with an AST tenant & give them notice after you own it.

But the fact is that it is much better to buy a place with vacant possession especially if you're buying somewhere to live in yourself.

Thanks very much. Despite the unwarranted abuse you get, you clearly know something about being a landlord.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.