someone told me 'guide price' can mean an unrealistic rock bottom price that
no seller would accept

anyone any exprience of houses bought/sold at auctions?

--
http://www.gillsmith999.plus.com/

"Gill Smith" wrote in message
o.uk...
someone told me 'guide price' can mean an unrealistic rock bottom price
that no seller would accept

anyone any exprience of houses bought/sold at auctions?

--
http://www.gillsmith999.plus.com/



I think guide prices are there to attract punters. In my experience the
reserve is within the guide price range. I've bought several houses at
auction and found it best to ignore the guide price and make my own mind up
as to what it's worth to me.
Quite often the property will sell within the guide.

If a house doesn't reach it's reserve and is not far short the auctioneer
will usually invite interested punters to come and have a word after the
auction. Often the vendor will take a bit less than the reserve rather than
pay to go through the process again.

mark

"John Rumm" wrote in message
o.uk...
On 07/07/2011 14:25, Gill Smith wrote:
someone told me 'guide price' can mean an unrealistic rock bottom price
that
no seller would accept

anyone any exprience of houses bought/sold at auctions?

At auction, the seller may well accept the guide price - much depends on
the circumstances and state of the place and the amount of competition for
it.

When selling by sealed bid, the the guide price is often deliberately kept
on the low side to encourage more viewings and bids. In the same way that
an auction sale may have a reserve, a sealed bid sale does not obligate
the seller to accept any of the bids.

--

With a sealed bid it isn't always the highest that wins. The vendor or his
agent will consider the bidders ability to progress and complete the sale.

mark

"Gill Smith" wrote in message
o.uk...
someone told me 'guide price' can mean an unrealistic rock bottom price
that no seller would accept

anyone any exprience of houses bought/sold at auctions?


Another consideration is that if you are a successful bidder you will need
to put down 10% on the day and the rest within 28 days or whatever the
contract requires. Defaulting is an expensive option. Usually a high
interest rate on the o/s monies and ultimately they can re-auction the house
and if it goes for less you owe the difference plus selling fees.

mark

Gill Smith wrote:
someone told me 'guide price' can mean an unrealistic rock bottom
price that no seller would accept

anyone any exprience of houses bought/sold at auctions?

I agree that guide prices are often set very low to sucker people into the
room. Usually, the reserve is somewhere around the guide price, and the
property will usually be bid up well above the reserve.



--
Murphy's ultimate law is that if something that could go wrong doesn't,
it turns out that it would have been better if it had gone wrong.

On 07/07/2011 17:04, GB wrote:
Gill Smith wrote:
someone told me 'guide price' can mean an unrealistic rock bottom
price that no seller would accept

anyone any exprience of houses bought/sold at auctions?

I agree that guide prices are often set very low to sucker people into the
room. Usually, the reserve is somewhere around the guide price, and the
property will usually be bid up well above the reserve.



I've been to an auction where the winning bid was above the guide price
and the auctioneer then announced that it had not reached the reserve.

"Andrew May" wrote in message
...
On 07/07/2011 17:04, GB wrote:
Gill Smith wrote:
someone told me 'guide price' can mean an unrealistic rock bottom
price that no seller would accept

anyone any exprience of houses bought/sold at auctions?

I agree that guide prices are often set very low to sucker people into
the
room. Usually, the reserve is somewhere around the guide price, and the
property will usually be bid up well above the reserve.



I've been to an auction where the winning bid was above the guide price
and the auctioneer then announced that it had not reached the reserve.

There was one that I looked at which IIRC has a guide of 120-140 and when at
the end of the auction it didn't sell, it was revealed that the reserve was
180!

I've also seen auction property which sell, on the day, at 10% below the
guide.

So the rule is, there is no correlation at all between guide and reserve.

However, looking across a range of auction most properties will either sell
at a price between guide and +20% or not sell at all. Some will sell at
much more than +20% but that will usually be because there are interested
OOs prepared to pay over the odds for it!

tim

On Thu, 07 Jul 2011 17:45:28 +0100 Andrew May wrote :
I've been to an auction where the winning bid was above the guide price
and the auctioneer then announced that it had not reached the reserve.

Standard practice here in Melbourne where there are hundreds of auctions
each week - it's the normal way of selling in many suburbs. Guide price
in the adverts will be (say) $600K-650K and then the Sunday paper will
say that it was passed in (not sold) at $680K.

--
Tony Bryer, Greentram: 'Software to build on',
Melbourne, Australia www.greentram.com