澳洲Australia property Is this property really going to sell for


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


Hi all,

I looked up this property in QLD, which appears to have been valued at $260k. It's a reverse option and will be sold for below $130k according to the ad.

This seems insane to me!

http://www.realestate.com.au/property-house-qld-slacks+creek-107432785

What does this really mean?

P.S. Just posting as I don't intend to buy in QLD yet.  

评论
APM values it (online estimate) at $284k.

It appears they are selling it for $130k or less.  

评论
but only if approx 150 bidders register at say 1000 a piece...........


ta
rolf  

评论
The starting price for the auction is being set at $130,000, this means that by being the successful bidder of our unique REVERSE PRICE AUCTIONS,this property will be sold for LESS THAN $130,000 GUARANTEED! (conditions apply).

Reverse Price Auctions is a membership based online auction system where people can buy property at a 45–55% discount - half price or less! Unlike a normal auction, once biddings starts our prices go down, not up. The successful bidder is the first person to bid the highest price BELOW the reserve price.

How can you sell a house for 45-55% below market value?
Yes, this is a real concept - we buy property at the full, independently valued price; then by creating a strong membership and advertiser base we on-sell at a huge discount. This strong base is created by connecting members with advertisers offering discounts of 10% and more on their goods and services, with discounts that can reach thousands of dollars. Membership and advertising fees enable us to purchase property at fair market value then pass on huge savings to you. It’s a win-win-win situation!


apparently........  

评论
So basically you have to pay money to be able to bid in this auction? Sounds dodgy to me!  

评论
yep - so, say 150 people pay $1,000 each for their "opportunity" to buy a $300,000 house at half it's value ... and it is then sold for half it's value at $150,000 ... and the vendor gets the money from the other 149 people totalling $149,000 ... the vendor then gets $299,000 for a house that someone bought for $150,000.

Great if you're the winning bidder and the vendor - sucks for everyone else.  

评论
but much better odds than lottery by far  

评论
thats pretty ridiculous

reverse auctions have been around for years,

the company is making a crapload if they are charging $1000 per person, although I cant seem to find the price of membership without entering in my details  

评论
It still doesn't make sense to me. If you paid to bid, heaps of people would put in a bid. Even if it went above 200K you'd still be getting a cheap home if it's valued a lot more.  

评论
I guess part of the ploy is to play on greed.

The winner is the first one in with their offer closest to the reserve ... so ... many would get greedy and try and get it much lower than the reserve, rather than going close.

I also almost signed up for an auction system in the USA called "Penny Auctions" or some such. It was a bit like ebay, but every time you made a bid it cost you 25c (I think). The eventual sale prices were really cheap - which is what lured me in - but when I read further into it, people would spend more on the "bidding" than you would on the product.

No thanks.  

评论
lizzie said: ↑
I guess part of the ploy is to play on greed.

The winner is the first one in with their offer closest to the reserve ... so ... many would get greedy and try and get it much lower than the reserve, rather than going close.

I also almost signed up for an auction system in the USA called "Penny Auctions" or some such. It was a bit like ebay, but every time you made a bid it cost you 25c (I think). The eventual sale prices were really cheap - which is what lured me in - but when I read further into it, people would spend more on the "bidding" than you would on the product.

No thanks.Click to expand...
A similar one exists here, where the "lowest unique bid" wins. But you pay for each bid. So going ridiculously low, like 1c, will probably not end up being unique. It all sounded too complicated; great for the person who wins the auction, but not for all the other suckers... I mean, participants.  

评论
Its actually not that complicated. Its just that most people have been conditioned to think like a traditional auction. Reverse auction has been around for centuries. I believe the emergence / development of reverse auctions is attributed to the dutch centuries ago during their super power days. Thats why it is sometimes refered to as a dutch auction. These auctions are quite well used even today. An example is the Sydney Fish market which runs on dutch auctions. When executed properly it is also much more efficient than a traditional auction, hence the implimentation by Sydney Fish market.  

评论
eggnog said: ↑
Its actually not that complicated. Its just that most people have been conditioned to think like a traditional auction. Reverse auction has been around for centuries. I believe the emergence / development of reverse auctions is attributed to the dutch centuries ago during their super power days. Thats why it is sometimes refered to as a dutch auction. These auctions are quite well used even today. An example is the Sydney Fish market which runs on dutch auctions. When executed properly it is also much more efficient than a traditional auction, hence the implimentation by Sydney Fish market.Click to expand...
Do you think thid one's executed properly, for the participants ?  

评论
No auction is executed to the benefit of participants. It is a tool for vendors.

Not sure if houses are a suitable product for a dutch auction. I guess time will tell. But I think this auction is structured so that no matter what the vendor comes out on top. If they don't get the minimum alloted registered bidders they won't sell and keep it as an investment. If they get the alloted bidders then they have locked in a profit. And, whilst they wait for the minimum alloted bidders they are probably holding the deposits of already registered bidders in a high interest earning account or offsetting another loan.

Not sure what the auction conditions are (registration cost, minimum number of bidders, auction date, etc) but if registration is only a couple of hundred could be worth a punt.  

评论
well think of is this way,

do you see those raffle tickets often being sold at shopping centres for $2 each, and first prize is a porsche valued at $150,000

if you look at the terms and conditions, the selling period is long , like about 6 months, and it does say, maximum or minimum of 150,000 tickets sold,

so for a $2 fee you get the chance of winning a porsche,

the person(s) running hte lottery get $300k, and then spend half of that on the porsche, minus advertising, minus wages, minus 2nd, 3rd prizes


same with this reverse auction, you pay $1000, and you get the opportunity to get a $300k property for $150k+$1k

nothing dodgy about it (but i think the lottery/charity rules are quite strict) but $1k for me is way too much to risk, imagine doing that 30 to 40 times and not succeeding  

评论
Property Meister said: ↑
well think of is this way,

do you see those raffle tickets often being sold at shopping centres for $2 each, and first prize is a porsche valued at $150,000

if you look at the terms and conditions, the selling period is long , like about 6 months, and it does say, maximum or minimum of 150,000 tickets sold,

so for a $2 fee you get the chance of winning a porsche,

the person(s) running hte lottery get $300k, and then spend half of that on the porsche, minus advertising, minus wages, minus 2nd, 3rd prizes


same with this reverse auction, you pay $1000, and you get the opportunity to get a $300k property for $150k+$1k

nothing dodgy about it (but i think the lottery/charity rules are quite strict) but $1k for me is way too much to risk, imagine doing that 30 to 40 times and not succeedingClick to expand...
We have had similar raffles in Canada. Many people say they would only win if the last ticket drawn was theirs...well that was how this particular raffle was set up. I didn't win !!  

评论
I dunno, but all these added complicaytions in my experience are usually for the benefit of the organiser to the detriment of the customers compared to the normal simple way of doing business...... with all this extra buyer beware bs added to make it sound as if you must be clever to have jumped on board as well

good luck to all involved  

评论
jaycee said: ↑
I dunno, but all these added complicaytions in my experience are usually for the benefit of the organiser to the detriment of the customers compared to the normal simple way of doing business...... with all this extra buyer beware bs added to make it sound as if you must be clever to have jumped on board as well

good luck to all involvedClick to expand...
I am looking into this for a mate , i can see the reg fee is $360 per year which allows you to bid 20 times per auction in as many auctions as you like. they are also offering refferal bouns of $15k if that person buys .... all seems a little dodgy to me , they do not seem to tell you how many people are required to start auction  

Property Investment

Australia property Selling Hints | Sydney

澳大利亚Hi folks I recall ready somewhere about what are some simple tricks for making your place more attractive during a home open. Im seriously thinking of selling my little pad and want to maximise my efforts. Any hints greatly appreciated. 评论 ...

Property Investment

Australia property Re-zoning | Sydney

澳大利亚What would the chances of a NSW Local Council allowing a community titled development (homes, community buildings, etc) on an area zoned Protected Agricultural land? Does anyone have experience in this area? Looking at the local council LEP, ...