Auction Prices Soaring.... Setting records above guide price

Thrugelmir

Here are the results from Strakers auction on the 24th September.

(Auction results September 2009) Lot Property Guide Price Sale Price

1 6 Weavers Cottages, Seend, Near Melksham £70,000 Plus £115,500
2 442 Carnation Lane, Bowerhill, Near Melksham £85,000 Plus £160,000
3 Building Plot adj 1 Bradford Road, Corsham £40,000 Plus £63,500
4 30 Cullerne Road, Swindon £130,000 Plus £162,000
5 1 Ash Walk, Warminster £130,000 Plus £151,000
6 3 Cannon Green, Westbury £130,000 Plus £150,000
7 23 High Street, Upavon £100,000 Plus Sold Prior
8 39 Fairfield, Upavon £210,000 Plus £228,000
9 Development Site at Seymour Road, Trowbridge £175,000 Plus Under Offer
10 50 Manor Road, Trowbridge £90,000 Plus £91,000
11 25 Southside, Shipton Moyne, Near Tetbury £155,000 Plus Under Offer
12Land & Stables at The Common, Rowde £70,000 Plus £80,000
13 4 Swindon Road, Old Town, Swindon £140,000 Plus £144,000
14 7 Meadow Drive, Devizes £135,000 Plus £143,000
15 2 Silver Street, Warminster £160,000 Plus £196,000
16 8 County Road, Swindon£95,000 Plus Not Sold
17 Rosegate, Kilmington Common, Near Warminster £220,000 Plus Available
18 13 Old School Close, Bromham, Near Chippenham£75,000 Plus £90,500

Total Sales £1,924,500 78% SOLD

Majority of property sold over guide price. So not sure what you can determine from price alone.


http://www.strakers.co.uk/auction-details.ashx?aid=16

lostinrates

julieq wrote: »

That could possibly happen when buying furniture or paintings, though in my experience auctioneers don't behave like that, it is more important to them to give a fair valuation to induce sellers to sell in the first place. But it's not credible to claim that this is normal behaviour for anyone buying a house.

If you have actual evidence that auctioneers are manipulating purchasers in the way you're suggesting then maybe it would be a good time to present it, otherwise it's really just conspiracy theory.

I could point to a couple of things I think have been valued low to encourage people to look...but the ones I have to hand I might go along to bid on...and with the friendliness of the board I don't think that would be wise! The mortgage broker suggested this was happening: I guess he sees more uction properties than I do.

Really2

Thrugelmir wrote: »

No, as the guide is the minimum price the auction house property will sell at, (in the auction room).

No it's not thats a reserve.

Guide is what they estimate it will sell for.

I used to buy and sell from auctions when I was a nipper not houses but the system is the same.

robin_banks

So it's quite easy to manipulate a margin then ?

i.e. A 3 bed terrace needing loads of work has a guide of £55k, I know full well said property will reach at least 80k because houses in good condition on that road go for 100k.

Really2

robin_banks wrote: »

So it's quite easy to manipulate a margin then ?

Yes either way.

But I think the problem is auctions tend to use previous similar selling prices (especially for repos etc) as guides.

That could be last years prices
So in 2008 all the guides were way over (as they were rating off 2007),
In 2009 they are under (as they are rating off 2008 prices)

In the end of the day the only way to find out is picking out lots finding their previous sold price and comparing that against a HPI calculator.

IveSeenTheLight

Thrugelmir wrote: »

Though lowering a guide price has the effect , like all good marketing , of sucking the punters in. A few well priced properties in an auction catalogue give the perception of value. The auctioneers know the particular property will sell above its guide. The punters flock to the auction, are disappointed not to win this property. Then start bidding on something they've never even seen the inside of. Their second choice property. In the belief that they are getting a bargain.

Much in the same way the journo who pulled the article off the newswires has done.

That's amazing they have thought to just start doing this after months of reported auction prices going down :rolleyes:

g_attrill

Really2 wrote: »

Yes either way.
But I think the problem is auctions tend to use previous similar selling prices (especially for repos etc) as guides.

I read an article from earlier this year that auctioneers would be setting much lower guide prices for 2009 because many sales in 2008 ended up selling for well under the guide price.

skap7309

HAMISH_MCTAVISH wrote: »

:rotfl:

Indeed.

Judging from some of the posts lately, I think they've now moved past denial and into the fear stage.....

I'd almost feel sorry for them, but as we all put up with so much abuse last year I think I'll just continue being smug instead.:beer:

Resists temptation to bite and instead quietly waits for the moment to come....

The :beer: icon is on hold for now, eh Hamish.............

Feel smug if it makes you feel better - i still stick by my prediction that you would not be on such a mission unless you made some kind of MONUMENTAL mistake regarding property.

Entertainer

julieq wrote: »

That could possibly happen when buying furniture or paintings, though in my experience auctioneers don't behave like that, it is more important to them to give a fair valuation to induce sellers to sell in the first place. But it's not credible to claim that this is normal behaviour for anyone buying a house.

If you have actual evidence that auctioneers are manipulating purchasers in the way you're suggesting then maybe it would be a good time to present it, otherwise it's really just conspiracy theory.

I know an auctioneer personally and he tells me they blatantly put in low guide prices just to get interest.

IveSeenTheLight

Entertainer wrote: »

I know an auctioneer personally and he tells me they blatantly put in low guide prices just to get interest.

And they didn't do that in previous months / last year :rolleyes: