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

Entertainer

The Strettons auction in September was also like this, lots routinely going for 30%+ above guide price, a combination of aforementioned false guide prices and a feeding frenzy of interest.

Really2

Entertainer wrote: »

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

So they were trying not to sell last year then.

The fact of auctions are.

The closer the guide to the achieved price the more reputable the auction house becomes.

What some people seem to forget their is someone selling the lot..

Auction. We will undervalue your property on purpose to generate interest.

Seller. OK so why not put a guide of £1 for everything?

Auction. Because people will only think they will be worth £1, would you sell your house for £1?

Seller. No but I would not want to sell it for less, so won't you get less for it for undervaluing.

Auction. Errrrrrrrr.

mizzbiz

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:

Who were you posting as last year Hamish?

Entertainer

Really2 wrote: »

So they were trying not to sell last year then.

The fact of auctions are.

The closer the guide to the achieved price the more reputable the auction house becomes.

What some people seem to forget their is someone selling the lot..

Auction. We will undervalue your property on purpose to generate interest.

Seller. OK so why not put a guide of £1 for everything?

Auction. Because people will only think they will be worth £1, would you sell your house for £1?

Seller. No but I would not want to sell it for less, so won't you get less for it for undervaluing.

Auction. Errrrrrrrr.

In September, a flat in Kensington sold for £615,000 — 146 per cent above the £250,000 lower limit.

Yes, because flats for £250k are ten a penny in Kensington.

Countrywide, Britain’s biggest estate agent, sold a two-bedroom cottage near Truro in Cornwall for 109 per cent above its guide price of £60,000 in September. A spokeswoman for Stratton Creber, which marketed the cottage near Truro, said: “We were surprised but think it attracted so much attention precisely because the guide was set at £60,000.”

Straight from the horses mouth.:T

Really2

So it is true then.

If they are selling below guide house prices to fall.

If they are selling above they are being undervalued.

What happened the sale price to guide price being a "direction the market was heading"

I do wish some of the bears would be a bit consistent on their sound bites.
http://forums.moneysavingexpert.com/showthread.html?t=959303&highlight=auction+under+guide

toby3000

Maybe this is a North-East thing, but I have been to a few auctions and they always start bidding at the guide price, which I thought was most bizarre... here it seems to be the starting bid rather than an actual guide price (they very rarely went below it, even if it went unsold)

HAMISH_MCTAVISH

Really2 wrote: »

What happened the sale price to guide price being a "direction the market was heading"

I do wish some of the bears would be a bit consistent on their sound bites.

:rotfl:

Indeed.

It's immensely entertaining watching them squirm with every bit of good news and desperately make up new explanations, all the while contradicting their earlier assertions.

Priceless.... although a little pathetic.

mewbie_2

HAMISH_MCTAVISH wrote: »

:rotfl:

Indeed.

It's immensely entertaining watching them squirm with every bit of good news and desperately make up new explanations, all the while contradicting their earlier assertions.

Priceless.... although a little pathetic.

Battenburg.

It's my intention to get more oblique as I get older.

nembot

The lovely spacious detached bungalow in a semi rural location I rent for £600 per month dropped from 325k to 195k in 6 months, went to auction twice... the result, well I'm still renting the same place, from the same landlord, this time with a 12 month contract, work it out.