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LittleSteroid

Reserved Prices

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Hi. I am considering buying at auction. How do I know whether there is a reserved price on the property? And if there is, how to find out what is it? Cheers. :unsure:

Virtually all properties will have a reserve price, if they do not the auction details for that property will state 'no reserve'. The reserve price is not normally if ever divulged to buyers. Auction houses normally set a 'guide price' which is published with the lots details. The 'guide price' is normally 10% within the reserve price, normally the guide is lower than the reserve price. Guide prices can be lowered in the run up to the auction date if the auctioneer has had no or little interest in a particular lot.

If on the day of the auction the reserve is no met on a particular lot, the auctioneers assistants will normally approach the highest bidder to see if a deal can be done, they may well contact the vendor (seller) by phone to see if they will accept a lower price.

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Look for the other months Edward Mellor where I watched the auction and noted the highest bids/etc.

In fact watch a few auctions yourself before you go any further. View a few - but bear in mind fast completition needed so you've got to have finance in place and there's no running away when you win... (Although they reckoned someone had a while back, but they lose their deposit so they don't care that much)

If you like one then approach about an offer before the auction. You never know. They might well want a fast turnround still though. Get a decent solicitor to look at auction legal pack before you bid too.

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Went to view an auction property the other day, it was literally crawling with people, and it wasnt that keenly priced to be honest (probably what you would expect it to be at for a normal sale). There must have been between 15/20 people there, and that was just a 15 minute period from one of the viewing days! Too much homes under the hammer I guess.....(seen some amusing ones recently, people buying without viewing, lower valuations than money spent, two 'professional poker players' waiting for the money to come rolling in etc lol)

You can look back at sold prices on Romans website, they seem to be slightly either side of the guide price in most cases.

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Went to view an auction property the other day, it was literally crawling with people, and it wasnt that keenly priced to be honest (probably what you would expect it to be at for a normal sale). There must have been between 15/20 people there, and that was just a 15 minute period from one of the viewing days! Too much homes under the hammer I guess.....(seen some amusing ones recently, people buying without viewing, lower valuations than money spent, two 'professional poker players' waiting for the money to come rolling in etc lol)

You can look back at sold prices on Romans website, they seem to be slightly either side of the guide price in most cases.

You can't gauge anything from the numbers at the viewings.

I too have been to viewings where dozens turned up and when I went to the auction there are only two (or less) people bidding for that property

tim

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You can't gauge anything from the numbers at the viewings.

I too have been to viewings where dozens turned up and when I went to the auction there are only two (or less) people bidding for that property

tim

Are you even sure that these "bids" were genuine? In my experience auctioneers almost always utilise "bids off the wall" - when the auctioneer invents a fictional bidder for you to bid against (somehow this is perfectly legal). Unfortunately, however, auctioneers have about as much integrity as estate agents when it comes to sharp practices such as these and that is why I always make sure I have a friend in the room who looks out for bids off the wall. When my friend gives me the signal that the auctioneer is employing such tactics I remove myself from the bidding process immediately.

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In fact watch a few auctions yourself before you go any further. View a few - but bear in mind fast completition needed so you've got to have finance in place and there's no running away when you win... (Although they reckoned someone had a while back, but they lose their deposit so they don't care that much)

+1

Also, try to stand at the side or at the back - auctioneers have been known to take bids "off the wall" (ie. pretend there's a bidder at the back of the room) - perfectly legal. Therefore it helps if you can see the whole room and see who is genuinely bidding against you.

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Taken from Cottons auction in Birmingham,

The Guide Price Schedule is intended to be a guide price (usually expressed as a

range) indicating the price region expected and may be subject to change at any

time. The Reserve Price which is agreed with the Vendor prior to the auction sale,

will NOT exceed the highest quoted Guide Price. The viewing schedule is correct

at the time of going to press and we cannot be held accountable for any changes

which occur due to a property being withdrawn/sold prior or cancelled for any

All interested parties are advised to make regular checks for any variations of guide price or viewing times.

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Anyone got a link to that stupid woman on that daytime TV show as where she's bidding against the wall and thinks she's had a deal ?

Caveat emptor

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