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Hi all i often look at lots that come up for auctions
I look at the guide prices and notice that certain auction houses are quite realistic in terms of the guide being somewhere close to the the reserve . I have bought from Clive emson , Barnard marcus sutton kersh and allsop at guide prices or somewhere close. When ever these companies produce catalogues it makes the initial assement of a potential investment so much quicker.
Then you have the likes of SDL who put guide prices that have no correlation to anything when i look at their catalogue its hard work to get approximate values of properties on offer as the guide prices are just fantasy . For example guide price of 50k for a property value of 120k .
Is this a case of just trying to get bums on seats .
Whenever they publish a catalogue its just hard work !
As I understand it, the guide price serves as a reflection of the seller's reserve price (normally <10% variance ?). It is no way intended to reflect what a property may or may not sell for. Auctioneers please comment.
Yes thats as i understand it but SDL guide prices are not even anywhere near 10 % of reserve prices. All of the other auctioneers i mentioned are within that window.
SDL is closer to 50% ! the guide price is just ridiculous
I have stopped bothering with SDL due to this practice in my area - they have a few individuals who sell a large majority of the plots (they are normally the early no’s, when more people in the room) who set a low guide price to get vast levels of interest to spark a bidding war....These normally have 8-10k in fees attached, with the legal packs only being made available typically 24-48hrs before the auction.
Now you mention it the legal packs not available until 24hrs before their auctions also rings true. This is where you will also find the high fees i assume.
See this thread: "Guide price" at auction - insights & issues
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
If auctioneers are supposed to have a reserve of not more than 10 percent above the guide price, how is it that a house price guided at 250000 got a bid of 335000 in the room but was not sold at that price? The reserve must have been more than 10 percent over the gp?I saw this recently at a London auction and had previously seen it at Savills auction in London??
I'm in Derby and SDL had a guide price of 25k on a 2 bed terrace, never seen so many people at a viewing! needless to say on the day it went for 108 k... bit of a difference there!
No matter where you go, there you are...
I have seen properties reach way over ten percent and still not meet the reserve. I have also seen shill bidding, which is allowed in property auctions though not on ebay. Some auctions have got very dodgy imo since we first bought at auction more than twenty years ago and they all seem to have changed practices in favour of the sellers.
I am now intrigued. I watched a video on this site with some high up from EIG group and a woman I think might be Propertytribes own Vanessa, and he said auction reserve prices cannot exceed ten percent above the guide price (I think that was what he said. Others might watch the video and comment??)So recently a house I was interested was pg £250000. The bid in the room was £335000 but it was not sold and was made available to buy after the auction for £340000. So is there an auction rule about guide prices???
Just looked at the results from the last SDL birmingham auction . I think the best way to view the guide prices on the houses as 2.5 -3.5 x guide to get approximate sale value .