My friends, a couple, are looking to buy a house and in one of their pursuits last Sunday I accompanied them to get a first hand experience of how an auction happens.
To get a realistic feeling, I role played wanting to buy teh house and looked around the house to see how I will settle in there, see where my computer would go, where my bed would go, how convenient eth kitchen was etc. I then calculated, based on location, size and the market price, what I thought would be a good price for the house. I arrived at 300 K. The reserve price, apparently, was 270K. Not bad aye!!!
The auction started and the authorised agent was so animated in his explanation of the process and in giving the details of the house. The look on each of the bidders/onlookers faces was interesting to note. Some people seemed to have decided not to bid, other felt it is worth a try while some really wanted the house.
When bidding opened, for a good 2 minutes there were no bids and that had be surprised. From one corner came a voice from a lady who offered the reserve price at 270K. From that time it was bidding bidding and only bidding. The price was going up by 25K each bid and then by 10K each bid. The price had reached the 320K mark when one person bidded for the first time. THe bid reached 350K and then became a 2-way fight. With 10K jumps becoming 5K and then 2K and then 1K and 500$, the agent was really marketing the property a lot. By this time it was clear that both parties really wanted the property and the stakes went on increasing.
It reached 376.5K when the agent went 1st call, 2nd call and SOLD! Phew!!! It was hugs in the contingent that won the bid and the guy was a young bloke, am sure buying his first home. A proud moment for him.
It was an amazing experience and to see the price go from a reserve of 270K to 386.5K shows what the Melbourne Real estate scene is like!!!!!
As for me, i was not too sure if I could buy a house on auction as its a momentary decision and I like to take time on big decisions, esp when its a huge investment. Perhaps a private sale is best suited for me. Anyways, I will cross the bridge when I get to it.
Subscribe to:
Post Comments (Atom)
7 comments:
hey rp,
ditto!! i can't buy a house in auction... i can't take such a decision that fast :)
Thought i never been to house auction.. I have had many of my paints auctioned for few good causes...so I kinda can guess the mood there... :) I mean the mood of the Realtor! :D
hi
I hv seen d auctions in movies only. where the villian bids for double money than the hero does.
n then hero bids double than the Villian n so on...............
zephyr : I can take fast decisions, but prefer not to with the big ones :)Welcome here!!!
Curious (Mami): Un(ga) range-e thani :D:D:D:D
Sandhya : Oh well the auctions are quite similar to those, just that theres no hero and no villain.
hi pramod !
i can take auction route for low cost items. eg. when in school, we had auctions for used cricket gear of school cricket team.
but buying a house is going too far, at this stage of my life. (will think about it when i become another warren buffet !)
thanks. (lionking)
vera yathachu auction irrundha sollu!!!! nd house ellam auction le vangarathu namaku velaiku agathu!!
nov sometime i'll b der in b'lore....letz do some house puja neibhour :DDDDDD
Vamsi : Welcome here mate!!! I agree. I remember those auctions as well but never got anything at an auction in my life, not yet!!!
Prasad : Ah ha sooper machi!!! sure we will do house warming:P:P:P
Post a Comment