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bidding auction can get way better value when selling your house

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  • Jul 14th, 2015 11:51 am
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9 replies
Banned
Jan 16, 2015
869 posts
86 upvotes
Toronto, ON
First there is the greed then there is need.
[OP]
Banned
User avatar
Sep 1, 2012
1783 posts
78 upvotes
did it actually work? seller super happy?
Deal Guru
Dec 31, 2005
13306 posts
741 upvotes
I have seen it a couple of times in the Bridal Path area....both times, it did not reach the reserve and was cancelled.
Deal Fanatic
Jul 4, 2004
7534 posts
791 upvotes
Toronto
nalababe wrote: I have seen it a couple of times in the Bridal Path area....both times, it did not reach the reserve and was cancelled.
Yeah. Not like an auction is going to drum up a ton of bids for stagnant properties that have been on the market for a while. If someone wanted them, offers would have gone in - auction or no auction.

It's pretty clear that the Bridal Path flip is actually a huge flop.
Deal Addict
Jul 6, 2005
4297 posts
1901 upvotes
Toronto
the house in the OP's picture looks so bland...
Deal Addict
User avatar
Aug 14, 2006
1271 posts
615 upvotes
GTA
It's a risk. When I bought my house, my agent told me that essentially, some houses are listed at significantly lower than a seller's expectations to attract more people to see it. That might incite a bidding war but at the end of the day, an educated buyer will see what market value is (agents will give their clients historical selling prices of houses in the area anyway) and may not really go significantly over what 'fair' market value is. You might get the joe schmoe that falls heads over heels for the place and outbid everybody else for it.

But then again, you know what they say about people that wins auctions/bidding wars: 'the only thing they really win is the right to pay more for something that nobody else was willing to'
Deal Fanatic
Nov 23, 2008
6299 posts
2533 upvotes
auctions are the norm for most residential real estate in australia and new zealand. Its just what they're used to.
Deal Expert
Feb 29, 2008
29093 posts
4782 upvotes
Montreal
Probably more transparent than the current system where buyers can't see each other's bids.
Deal Fanatic
Jul 3, 2011
6517 posts
3788 upvotes
Thornhill
mr_raider wrote: Probably more transparent than the current system where buyers can't see each other's bids.
Not as transparent to the buyer as you might think. The reserve bid is a big secret. Meanwhile all auction bidders must buy the property with no conditions and put up a stated deposit.

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