Houses having higher prices than advertised when ring auctioneers?

Rudolph Claus

Hi folk,
Can anyone tell me why is it that when you ring up about a house for sale the auctioneer tells you that th house is actually at the wrong price and is in fact a little moe expensive(conveinently enough). A relative who is looking to buy a house is coming across this type of thing an awful lot.Is this a scam where an auctioneer is chancing their arm by attracting customers on cheaper prices or what is the reason of this. Cheers!

bounty

no way! all auctioneers are completely honest, and have never ripped anyone off for extra commission

Pa ElGrande

Advised minimum values (AMVs), the new system for estimating the values of homes for sale, have failed to give buyers more accurate indications of how much properties will sell for at auction.

The difference this year between the prices achieved at auctions and AMVs placed on those properties is just as big as it was in 2005 when the old system of guide prices was still in place.

Houses sold at auction in 2006 made an average of 34.5 per cent above their AMVs, according to a Sunday Business Post analysis of auction results in Dublin and Wicklow. Last year auction prices in the same area were on average 34 per cent over their guide price.

AMVs were introduced by Michael McDowell, the Minister for Justice, last January.

Estate agents undervalue auction prices by a third
http://archives.tcm.ie/businesspost/2006/08/27/story16745.asp

Of course they adhere to to highest standards and the phantom bidder does not exist either.

Rudolph Claus

Whats the best way to respond to an auctioneer when you get this spiel from them, what questions should you ask in relation to the why the price is wrong?

Sponge Bob

offer 10% below original asking is what I would do, the selling season is over for 2006 and someone will want to cut a deal before christmas.

antoinolachtnai

It could be that the price has gone up because of the level of interest. Not saying that that is necessarily it, but it could be.

Any price on an ad is just a guideline price. You never expect to pay that exact price. It could end up being less, it could be more.

The auctioneer is dealing on behalf of the vendor, not on your behalf. The vendor, not the auctioneer dictates a lot of this. You shouldn't expect the auctioneer to have your interests at heart.

Auctioneers do a lot of dumb stuff, but you have to be realistic. It's good to see auctioneers trying to get the best price they can for their property.

It isn't really worth an auctioneer's while to wast time trying to get an extra 10 grand for a property, at least as far as the commission goes. An extra 10 grand means a lot to the vendor, but it only nets about 150 euros for the auctioneer.

Pa ElGrande

Nuttzy wrote:

Whats the best way to respond to an auctioneer when you get this spiel from them, what questions should you ask in relation to the why the price is wrong?

Mostly applies to the USA

Lowballing in a cool housing market
http://www.bankrate.com/brm/news/real-estate/20060909a1.asp