It is hard to find a property for sale these days that isn’t for auction and it can all be very frustrating. In my view auctions can lead to distortions because without some idea of price (read “value”) buyers have little hard facts to go on when they bid. Preparing to bid is stressful enough, but as often happens, somebody else bids the price way over what may sensible, leaving many people very frustrated . It can also be highly inflationary.
The auction system works well for the agents, especially now that disclosure rules are much tighter. Auctions are final and unconditional with little or no comeback. As CV’s are often useless I wonder if price guides should be quoted? They are after all only price guides and if someone wants to pay more so be it. Price guides are used for many types of other auctions and frequently items sell under or over the guide but at least it give potential buyers some sort of idea.
Auckland homeowners turn to auctions
Almost a third of all homes on the Auckland property market are now sold at auction.
The Real Estate Institute of New Zealand says in the year to March almost 30 per cent of sales in the Auckland region were at auction, compared with 22 per cent a year ago and just 11 per cent five years ago in 2007.
In some suburbs three out of four properties went to auction, the institute said.
“Auctions are becoming the preferred sales method, particularly in higher priced suburbs,” chief executive Helen O’Sullivan said.
“Auctions are often a preferred selling method particularly when there is rapid change and uncertainty over values.”