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In Australia a law was introduced where realtors had to provide realistic values for property that went to auction. Before that if you were looking at 2 bedroo
by 2muchcoffeeman 10y ago
In Australia a law was introduced where realtors had to provide realistic values for property that went to auction.
Before that if you were looking at 2 bedroom apartments, around Sydney, you'd just mentally add 400k. Not sure if it's better now or not.
- djrogers 10y agoThe properties in GP's post are not likely to be sold at auction - very few homes are sold that way in the US. The 'bidding war' referred to is a standard listing/sale that receives multiple offers. If the interest is high enough, the seller may counter all of the offers and reveal the highest price, forcing the bidding.
- WaxProlix 10y agoEven without revealing the highest offer, the offers themselves constitute a silent auction, which is where a lot of the information asymmetry comes from. If I could speak to each of the other people and tell them I had X amount to spend we could all agree to walk away or make offers without going through a bunch of hassle and (for 32 of 33 offerers) heartbreak. The process really highlights to me how broken certain types of 'market' can be when there's a monopoly of information.
- deleted 10y ago[deleted]
- tehlike 10y agoWhat you are talking is second price auction. Winner gets the house, but pays the price of the runner-up. I wish this existed.
- infinite8s 9y agoWhy would a seller agree to this type of auction?
- skj 9y agoTo get people to be more aggressive with their bids.
- tehlike 10y agotoomuchtodo: I am not sure if i would call it "true" value. The true value is what you'd get if you were to sell it again. Maybe at that same day, which sounds to me like the runner-up bid.
- DougWebb 10y agoWhy would the seller go along with the idea that the buyers would negotiate amongst themselves to choose a price?
- WaxProlix 10y agoThey wouldn't, because it's not in their interest.