Quick auctions not in vendor's interests: Helm

Friday 9 August 2013

A property sold at auction this week, less than two days after it was listed online.

By The Landlord

Property commentator Alistair Helm said he was speechless at the move.

The property was a two-bedroom home in Auckland’s Pt Chevalier.

The listing appeared on Trade Me on Wednesday, with an open home that evening. The auction was scheduled for the next day at 4pm.

Helm said he contacted the agent and was sent an automated response saying that there had been a pre-auction offer.

Helm said: “I am struggling to understand how there can be a pre-auction offer when the property only came on to the market today? Clearly the agent has been marketing the property within a database of buyers prior to its listing. That is perfectly acceptable, but what eludes me is why the agent should imagine that the only buyer should be within the agent’s database of buyers. I might be interested in the property but the agent does not know me?”

He said it was hard to see how the process could be in the seller’s best interests. “Vendors deserve the opportunity to see what comes of a reasonable marketing campaign especially in today’s market where we are constantly told that demand is high and supply low.”

He said it was impossible for buyers to properly prepare themselves to bid at an auction within less than two days.

“The real estate industry needs to take a good hard look at this situation and ask the question of itself – is this really how we want to be seen by our customers?”

The property sold for $1,050,000 after six bids.

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