The Herald Sun is running a story that
Whilst the story will undoubtably be about a real investigation, it is in essence a massive beat up.The Herald Sun are also running a major Block Blog promotion on their online front page. These stories hitch the Herald Sun to the popularity of the Channel Nine Show.
The investigation by consumer affairs will inevitably produce exactly zip. Dont get me wrong, with the interest shown, the Block homes will produce a remarkable result at auction, and the properties will have been underquoted
The properties will have been underquoted.
The renovated homes will sell and sell well. The great unwashed will find themselves unable to resist overpaying for a piece of celebrity. The agents will be able to sight the mitigating circumstance of TV popularity to explain the overblown result.
In essence this is the core of the main problem with Auctions, there is no willing buyer. The desired set up to achieve a fair market price is
a knowledgeable and willing buyer meeting a knowledgable and willing seller, neither of whom are required to act
This can never be achieved in the heart in the mouth atmostphere of auctions. I have probably bid at over fifty auctions in my career and struggle to think of a single time where I did not act at least in part on blind emotion. Fear of losing the property, fear of being out bid, hubris and plain old fashioned ego have all paid a part. When I bid for family or friends, with their money on the line, I am closest to a willing buyer who is not required to act. The REIV how have come under my scrutiny previously, are completly unable to sort this mess. The tide is slowly turning with a growing number of agents signing on to act fairly at all times
A further question mark remains over the quality of these amateaur renovations. To the successful bidders I say;
Cavaet Emptor, let the buyer beware!