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Banker Auctions His House By Reducing Price £2000

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http://www.telegraph.co.uk/news/main.jhtml.../23/ixhome.html

A town house is to be sold by Dutch auction with the price dropping £2,000 each day it remains on the market.

The idea is based on a technique used in financial markets and will test the nerve of bidders interested in the four-bedroom property.

Steven McGoldrick, 38, who works for a global investment bank, adopted the system when the Edinburgh home he shares with his wife Sally, 38, and their two young children failed to sell when advertised at offers over £735,000. On Monday, it will be offered again at £800,000.

The selling agent claims the house in the city's Royal Circus, in the popular New Town area, failed to sell despite more than 30 people viewing it because buyers were concerned they could become involved in a bidding war.

Mr McGoldrick said: "A similar system is used for US government treasury bonds, the biggest capital market in the world, and it was used by Google for its initial public offer.

"There was a great deal of interest in the property but nobody wanted to make the first move. I even spoke to someone who loved the house but did not even view it because he thought it was going to go out of his range."

Under the Scottish system, a closing date is set when someone lodges an interest in a property and bids are submitted blind, resulting in some homes being sold for figures well above the asking price.

Mr McGoldrick said he thought of setting a fixed price but "it was hugely frustrating to think that I was going to cap my price when there had been so much interest".

He said: "Then I thought, why don't I set a price I'm happy with then take it down to where the buyer is prepared to meet me. I think it is a far better mechanism than a fixed price, which can be taken as a sign of weakness by the seller.

"If we receive more than one offer on the same day, we'll take the first one.

"The value of the property is what someone is willing to pay and this is an open, transparent mechanism of finding what that is."

Tony Perriam, of the selling agent Rettie & Co, said: "We are confident that within a fortnight someone will come forward."

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"If we receive more than one offer on the same day, we'll take the first one.

"The value of the property is what someone is willing to pay and this is an open, transparent mechanism of finding what that is."

Got to admire the realism of the guy. Definately a fair open way of doing business.

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I read this article too. Seems a great idea. Wonder what he would do if, even after dropping by £100K no one has offered. I guess that would depend on what he originally paid.

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Tony Perriam, of the selling agent Rettie & Co, said: "We are confident that within a fortnight someone will come forward."

So the agent reckons it will find a buyer around 772K [being the day 14 marker] So if theres a party really frighteened of missing it, and thinking somebody else is gagging for it [well they would think that wouldn't they] They must go in at 776K or higher, what the hell if you really like it go in @ 800k its only 3% over 776K. And whats 3% over if the markets going to tank anyway, and if it doesn't your laughing :rolleyes:

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  • 335 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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