Petition demands auction reserves be published
Petition demands auction reserves be published
Posted on Tuesday, March 25 2014 at 3:47 PM
In a bid to stamp out underquoting and dummy bidding for good, Sydney real estate author and buyers’ agent Patrick Bright is challenging the NSW Government to make advertising reserve prices on properties for sale by auction mandatory.
Launching
his own online petition, Bright called on the NSW Minister for Fair Trading to
amend the current legislation and make it compulsory to publish the reserve
price seven days out from auction.
With
auctions becoming the sales method of choice, according to Bright, particularly
in Sydney and Melbourne, it is time the NSW Government ‘got serious’ and ‘take
the lead’ about making the auction process more transparent for all buyers and
sellers.
“Vendors
who choose to sell via auction should be required to publish the auction
reserve price seven days out from auction day to create a more transparent
process,” he says.
“Under
this scenario, buyers will have the choice to go ahead and pay the lead up
costs with confidence knowing that they are actually in the running to purchase
the property.
“With
seven days notice, sellers will also have the choice to either continue with
the auction or pull the auction and pursue a private treaty sale.
“The
real estate auction process is rife with underquoting and it’s time for buyers
to take a stand and say ‘no’ to this unfair, misleading and deceptive
practice.”
Mr
Bright says despite it being a breach of the Act, many selling agents and
vendors still underquote the value of properties up for auction and this needs
to change.
“As
expected, buyers accept the selling agent’s price guides on face value for
properties listed for auction and why wouldn’t they?” he says.
“Unfortunately
though for the buyers, the vendor’s real expectations and subsequent reserve
are often significantly above the price guide and often far more than they can
afford.”
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