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bomberbrown

The Sheer Greed & Stupidity Of Some Sellers

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Unsold, the last bid was £822,500 and is available at £830,000. What are we talking about here.... less than 1% short of the asking price??? :blink:

http://www.eigroup.co.uk/auctioneer-templates/LotDetails.aspx?LotID=589411&a=2&c=and

More results here: http://www.a-r.co.uk/ResultsLast.aspx

I've been to a few of these, even where there were no bids, gone up to the auctioneer afterwards and put in a price. A few days later I get a call from the agent, who laughs and says, not they've decided to put it up for sale by treaty (?).

It depends on just how badly they need to sell, imo. Most auctions are just a racket.

Edited by Toto deVeer

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just goes to prove my point - unless we see serious forced sales and not speculative punts by vendors who can afford to stay put, the number of properties coming onto the market and asking price stats are simply meaningless.

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Forced sellers?

In the era of no growth and tiny rates of interest forced sellers are a very rare beast indeed.

There were only 4 houses up for auction in the Hull Mail this week , all with a guide of about 35k , in a city of 300,000 people. You could get 450pcm renting them out , so there will be no shortage of buyers at them prices with money earning nothing on deposit.

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Forced sellers?

In the era of no growth and tiny rates of interest forced sellers are a very rare beast indeed.

There were only 4 houses up for auction in the Hull Mail this week , all with a guide of about 35k , in a city of 300,000 people. You could get 450pcm renting them out , so there will be no shortage of buyers at them prices with money earning nothing on deposit.

Forced sales aren't simply governed by IRs - public sector jobs cuts and the effects of a double dip recession would do it, in addition to the usual deaths, divorces, upsizes, downsizes and re-locations.

As for people stampeding to invest in Hull, they might see greater returns in the short term yet their capital investment will be whittled away by price falls. In a few years you'll be buying a whole street for 35k...

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I've been to a few of these, even where there were no bids, gone up to the auctioneer afterwards and put in a price. A few days later I get a call from the agent, who laughs and says, not they've decided to put it up for sale by treaty (?).

It depends on just how badly they need to sell, imo. Most auctions are just a racket.

Toto, what is sale by treaty?

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Toto, what is sale by treaty?

A private treaty sale is when a house is offered for sale at a negotiated price. A private treaty sale may be conducted either by the vendor personally or through an agent. The normal practice is for the vendor to set a price, and you negotiate with them until a mutually agreeable price is reached. Unlike auction, the potential buyers do not know what others may be offering for the property.

from http://www.ocba.sa.gov.au/consumeradvice/realestate/method/private.html

which is australia but I dunno prob the same here

sounds like normal estate agent selling

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Toto, what is sale by treaty?

The term "private treaty" means simply that a piece of land or a property is being sold by one party to another without the help of an auction.

Land may be offered for sale by private treaty, meaning it is up for sale but not by auction.

http://www.home.co.uk/guides/mortgage_glossary.htm?privt

GIYF

http://www.google.co.uk/#hl=en&biw=1217&bih=806&q=sale+by+treaty&aq=f&aqi=&aql=&oq=sale+by+treaty&gs_rfai=&fp=595813ed5fbd2989

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Unsold, the last bid was £822,500 and is available at £830,000. What are we talking about here.... less than 1% short of the asking price??? :blink:

http://www.eigroup.c...89411&a=2&c=and

More results here: http://www.a-r.co.uk/ResultsLast.aspx

I would think the most likely scenario is that the vendor bid up to 822,500, full well knowing the reserve figure.

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Unemployed homeowners need not worry - they can sign on and get housing benefits for up to 100 grand a year.... or can they? What. No the conservatives stopped that malarkey! Ah so, the injin of the economy will be slowed to stall speed and whoosh there go house prices. Yippeeee

Forced sales aren't simply governed by IRs - public sector jobs cuts and the effects of a double dip recession would do it, in addition to the usual deaths, divorces, upsizes, downsizes and re-locations.

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I would think the most likely scenario is that the vendor bid up to 822,500, full well knowing the reserve figure.

Yes, either that or a 'shill' bid. But why not sell after auction to the penultimate and genuine bidder. I thought this practice was quite common?

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Yes, either that or a 'shill' bid. But why not sell after auction to the penultimate and genuine bidder. I thought this practice was quite common?

Good point, but then was the penultimate bid also a bid from the vendors friend, who really knows. The point is of course vendors should take offers, particually in this market. Who would want to be selling in these times.

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Forced sellers?

In the era of no growth and tiny rates of interest forced sellers are a very rare beast indeed.

There were only 4 houses up for auction in the Hull Mail this week , all with a guide of about 35k , in a city of 300,000 people. You could get 450pcm renting them out , so there will be no shortage of buyers at them prices with money earning nothing on deposit.

Hull has an over supply of housing, tenants are not easy to find. Hull council is in the process of knocking down social housing. Many southern BTLers got there fingers burnt buying these cheap properties and then can't find decent tenants.

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Unemployed homeowners need not worry - they can sign on and get housing benefits for up to 100 grand a year.... or can they? What. No the conservatives stopped that malarkey! Ah so, the injin of the economy will be slowed to stall speed and whoosh there go house prices.

I feel like printing that on a white T-shirt

Yippeeee

with that on the back

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It is normal practice for property auctioneers to bid up most lots to just below the reserve even if no one is bidding. It is pure theatre and makes it look as if unsold properties are close to selling. This may give other potential buyers the confidence to bid on other lots. It also heps them on trying to tie up a sale after the auction as it looks as if the property nearly reached its reserve.

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I would think the most likely scenario is that the vendor bid up to 822,500, full well knowing the reserve figure.

Exactly, probably an off the wall bid

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  • 238 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%



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