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Tempest

The Dutch Auction Chappie In Edinburgh

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Here it is: http://www.rettie.co.uk/buy_property/view_...rice_min=750000

He wanted "offers over" £735,000 earlier this year - apparently had lots of interest but no offers. He thinks that people did not make offers because they did not want to get into a bidding war (seems fallacious (optimistic/deluded?) to me - if I had a ceiling on price I would offer it and if it went higher so be it - fear of a bidding war would not stop me bidding once!). The fact that he has said to the press that at the time he expected over £800,000 says something I think about his, perhaps unrealistic, expectations - see below!.

Anyway, he devised a dutch auction starting at £800,000 on 26 Sept where price drops £2000 every weekday until it sells (or he gets stroppy and takes it off the market...).

I think it a clever idea in principle but unless it sells today, tomorrow he will be 15 days in and £30,000 down at £770,000.

I wonder where it will fall to? I could think of a better time to be doing this - if it breaks below £766,000 then I think he may be in for a surprise and a long wait - if I had wanted to buy it before at "offers over" but had been afraid of a "bidding war" I think I would have been happy to buy it for 5% premium.

Do you think he has ever considered whether the original £730,000 price was overpriced? well, by end of November he'll know one way or the other!

Edited by Tempest

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20/4, Royal Circus

Edinburgh

Midlothian

EH3 6SS

£186,327

Probable sale

More Details

17 Feb 2005

Map(EH3 6SS)

16, Royal Circus

Edinburgh

EH3 6SS

£332,000

Probable sale

More Details

05 Aug 2004

Map(EH3 6SS)

22, Royal Circus

Edinburgh

Midlothian

EH3 6SS

£757,757

Probable sale

More Details

10 Sep 2003

Map(EH3 6SS)

30/2, Royal Circus

Edinburgh

Midlothian

EH3 6SS

£447,777

Probable sale

More Details

24 Jul 2003

Map(EH3 6SS)

18, Royal Circus

Edinburgh

EH3 6SS

£350,000

Probable sale

More Details

30 Oct 2002

Map(EH3 6SS)

16/5, Royal Circus

Edinburgh

Midlothian

EH3 6SS

£297,500

Probable sale

More Details

26 Sep 2002

Map(EH3 6SS)

28a, Royal Circus

Edinburgh

Midlothian

EH3 6SS

£328,501

Probable sale

More Details

22 Aug 2002

Map(EH3 6SS)

20/4, Royal Circus

Edinburgh

Midlothian

EH3 6SS

£148,000

Probable sale

More Details

28 Dec 2001

Map(EH3 6SS)

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Guys it`s pointless monitoring this situation, the vendor has put a caveat that at any time he has the right to withdraw the sale. He`s truly taking the piss. I e-mailed the agent 10 days ago and asked specific questions, not a good reply. Thay are happy to let it drift whilst it may continue to give them pr representation for no outlay. On a different theme, WTF is Edinburgh so expensive? Did it turn in to Monaco whilst I was asleep?

"There has been an unusually high number of viewers and all, bar one, has given very positive feedback on what is, by any measure, a remarkable property. Yet, after 4 weeks on the market the property remains unsold. It appears that several would-be-buyers are reluctant to formalize a bid because they believe that doing so may trigger a bidding war with the ultimate selling price far in excess of the "normal premium" to the offers over price. So, to break this impasse the sellers are pleased to declare the price they will accept."

Edited by Converted Lurker

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Not wholly pointless - it is as close as we can get to a transparent measure of exactly where the market is - what someone is willing to pay for something measured against what the seller wants for it (or believes what it is worth).

My recollection is that it is only two floors ("lower townhouse") whereas there are/have been three floor properties on the same street on for around £750k in the recent past.

He is now below the 5% premium on his original £735k offers price. I think that is significant as I would have thought that, if he was right about the level of interest, a buyer who could guarantee purchase at 5% over the offers price would have snapped it up...(ie being at or below the "normal premium" they talk of)

£800k aspiration was clearly nonsense. I now think it will go to £735k or below!

In any event, it is fun to watch a seller's pain and his realisation of the market's view of its value in real time. Perhaps he will take it off the market and wait for the spring bounce.

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Sorry, did not mean to appear harsh, the vendor is using the agent, who is quite happy to get national exposure they could only have dreamed of. As you can see by my post they are now showing a price they would accept. Renders the whole episode pointless IMHO.

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Just as a side note I work in edinburgh most of the time and the last 2 weeks I have been driving round a good part of it and the amount of flats and houses for sale is unbelievable. We are always told that the property slow down is not affecting us up here. B*LL*CKS.

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Sorry, did not mean to appear harsh, the vendor is using the agent, who is quite happy to get national exposure they could only have dreamed of. As you can see by my post they are now showing a price they would accept. Renders the whole episode pointless IMHO.

I took your point - I agree about the Agent's PR etc, and the fact he can take it off the market or not accept if he doesn't like it. However, for what its worth, the rules of the auction on the website say the "fixed price" is what the price is each day AS REDUCED. The website has shown the price in that way as a price he would accept since the outset - it is always described as "fixed price" each day - just that it is £38k less now than on day 1!

One thing, he (nor the agent) can hardly argue afterwards that the property has not had sufficient exposure!

Edited by Tempest

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On a different theme, WTF is Edinburgh so expensive? Did it turn in to Monaco whilst I was asleep?

Let me guess: the 'Scottish Parliament' and all the well-paid government jobs that came with it?

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A few years ago selling property in Edinburgh was so simple... you put it on the market, waited till a few solicitors of interested parties called your solicitor formally noting interest in bidding for the property. Once your solicitor reckoned he/she had drummed up enough interest a closing date was set, usually with a noon deadline. The interested parties' solicitors all sent in their bid at 11.55 and the highest bidder got it.. missives were exchanged and agreed within 2-3 days and that was that.

Actually I think the open auction is an even better way of doing it (whether reverse or normal) what I don't get is why some sellers seem to think their property is worth more than the highest bid. It's so simple - the property is worth what someone will pay for it.

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Since the public sector become so bloated and since the public sector pretty much pay the same wages all over the country and since the government want 99.999% of people to work for the public sector then the difference of pay between the south and north should soon be reduced to 0.

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Hmmmmmmmm, I know this is crap but just looked again and its now FP £745 which must means he stopped as 800000 - (days * 2000) cant equal 745 in my book, so looks like he's bottled out,

anyway this is more to my taste:

http://www.rettie.co.uk/buy_property/view_...rice_min=750000

Bingo.

http://news.scotsman.com/index.cfm?id=2322972005

Banker back-pedals over reverse auction to sell New Town home

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Just to break the current mould of posts on the board, I am updating my old thread on the reverse auction in Edinburgh (I was bored and wanted to find out how he got on - and I have). Read the thread above for detailed background if you have any interest.

Anyway, nethouseprices reveals that this place (Flat 20b ground and basement flat) sold in Jan for, wait for it, not £800,000, not £745,000, but...£690,000. The point being that 6 months ago the owner and agent swore blind that there were people willing to offer more than £735k but were unwilling to enter a bidding war. If he'd taken £735k in Nov he'd be a lot better off. Greed does not always pay. I suspect he'd have made more than £690k too if he'd had the balls to leave the auction running once it hit £745,000 (but he pulled it).

Good to know that an owner saying "its a fixed price of £745,000" really means "I'll accept 7.5% off asking". Maybe froth coming off Edinburgh market? or maybe not. who knows and who cares.

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Mr McGoldrick said: "Obviously the reverse auction has not worked in the way we wanted it to. We let it run until it was below the valuation of the house and decided to change tack.

I guess this is a bit of old news really but I think the above statement represents a lot about the current sellers in the market.

I was always under the impression that the value of something was what someone was prepared to pay for it. What we have here is someone saying either, 'There was no-one who was prepared to pay our valuation for it', or 'Nobody was prepared to pay more for it that it was actually worth'.

Either way I'm glad it only went for £690k!!

G-Man

Edited by G-Man

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I was always under the impression that the value of something was what someone was prepared to pay for it.

G-Man

You have no idea do you... a house is worth what the owner says it is worth. It's the rest of the world that is wrong.

I went on a valuation once and the owner said he wanted £225k for his house - I thought £200k. When I asked him why he thought his was worth £225k he replied - because the one over the road has just sold for £225k. I looked from the front door of his hovel (roof shagged, windows worse, interior appalling - illegal HMO for years by the looks of it) to an immacualte looking place over the road with a board outside. Rang the agents... it was on at £225k, dropped to £220k and sold for £205 or £210k I think.

Owner logic at it's best.

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  • 301 Brexit, House prices and Summer 2020

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