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how can an auction property be "ubsold" ?  i would bid a £1.  They all had reserves?

Your bid of £1 would be outbid by the wall until you were just over the reserve price. 

If only 1 person is interested there's still a 'bidding war'. Seems easier to do now since all auctions are remote, though i've noticed the auctioneers still play a good game and look in the opposite direction for the next 'bid'. Old habits i guess. 

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Your bid of £1 would be outbid by the wall until you were just over the reserve price. 

If only 1 person is interested there's still a 'bidding war'. Seems easier to do now since all auctions are remote, though i've noticed the auctioneers still play a good game and look in the opposite direction for the next 'bid'. Old habits i guess. 

Uh-huh. i wouldn't bid more than £1. So like i said the only reason they are unsold is they didnt reach the reserve. If there was no reserve the wall couldn't do this shill bidding, because they would get stuck at some point being the highest bidder and have to Auction house would have to buy the property or admit they were shill bidding. 

They only way to true price discovery at auction is to have no reserve. 

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admit they were shill bidding

They don't call it shill bidding, but it's in most auction T+Cs that they reserve the right to bid on the owners behalf up to the reserve price, which is basically the same thing. It's a right they seem to practice often. 

 

Auction house would have to buy the property

They'll avoid that eventually by not excising their discretion on the reserve price. You often see: 'Unsold, last bid: £395K available for £400K'. Any auctioneer would have accepted a £395K bid even if the reserve was 400K. The problem is the £395K bid wasn't real. 

 

They only way to true price discovery at auction is to have no reserve. 

The only time i've seen anything without a reserve is weird strips of land that sell for £1 - £5, like this

https://auctioneertemplates.eigroup.co.uk/LotDetails.aspx?LotID=989587&a=346&c=fah

I don't know who buys this kind of thing but, the buyer fees will be around £2K so it's not something you could just buy as a laugh like the people who own a plot of land on the moon. 

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  • 439 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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