Our house went to Auction last Thursday night and we were number 18 of 21 properties up for auction on the night. Four of the five people who said they were interested in buying turned up and registered but as the properties went on the market and prices were below what was expected it became obvious to me that we may not get what we wanted.
We had the house valued pre-Christmas by the bank and had dropped the reserve price by $20k below that valuation in the hope that once we got to that stage in the auction and went on the market that the competition would drive it up towards the valuation.
The opening bid was $40k below the reserve and that was a bid by the auctioneer on our behalf. He then raised it by $10k and we got one bid only at $1k above that. Eventually we settled for a figure $2k below the reserve but well under what we were hoping for. It became very much a decision around whether the bird in the hand was worth more than any potential offer we might have gotten outside the auction. No contest really given the cooling in the market, the fact that we are facing an interest rate rise in the next three weeks and the absolute confusion over what this Federal Government is going to do with that monster lurking in the background, the Carbon Tax.
At least now we can move on and enjoy the new place.
Speaking of which the front is now rendered and the kitchen and bath room cabinets almost finished. Our site supervisor, despite earlier telling us it would be ready by the end of June, is now saying 75 to 90 days. I suspect he is just being ultra conservative because it seems to be moving pretty well at the moment with the painters due to start tomorrow.