The first one is in Galway on September 12th. I am sure 2Pack et al are only chomping at the bit. It bares all the hallmarks of a ramping up type of auction. It will be a case of trying to spot the genuine bidder among the ringers. The law on auctions is quite specific in Ireland.
Fucking sharks… First up against the wall, that lot…
Always with the confidence. What is it with this word?
Put a FTB up on the stand and all the sellers get to compete for their business?
Shark Bank Inc. have no money.
Get the message out - there are NO PHANTOM BIDDERS FOR ANYTHING.
Call the bluff, before you Gazunder, then walk away.
The simple message that is required is that no rational buyer exists right now.
All rational buyers are waiting.
The downward sloping demand curve - not much further to go.
The Auction was always a trick. Very few of them now. The same fate awaits the charlatan, it won’t be long now.
The process, unfortuneately, will continue for a few years - because - Ireland is Different.
Surely this could be classed as desperation on the part of the EA’s?
Talk about a pressure-sell!
I don’t think it’ll work very well though. Most buyers are good and cautious right now, they know prices are dropping and the only to reasons to buy in this pressurised of an environment is if you think either
· the price of the house is shorly going to rise again or
· you need somewhere to house a new family.
Now I’m going to assume that there are at least some buyers out there who think that the price of houses has bottomed-out and is due to start rising soon. I think that hardly anybody who wants to house their family is going to buy a house without at the very least walking around it and “kicking the tires” so that pretty-much eliminates buyers from the second group. Ergo I think the only people likely to buy are people from the first group who think that the market has bottomed-out and is due to rise again. I wouldn’t expect this is a very large group of people right now. And given the way the mortgage market has gone you wonder if they could get approved for a mortgage even if they do want to buy.
Imagine you’re a mortgage advisor and you find out that they bought this at auction in a highly-pressurised selling environment. Would you be keen to extend them a loan?
I didn’t think the BBC published details of when they were filming “The Real Hustle”.
but what happens when this:
“Contracts will be signed on the day and closed within a month of the auction.”
ends up with this…
“But what we’re finding now is that we’ll agree on a deal, the buyer goes to their bank, and the bank is refusing to lend them the money.”
Of COURSE there will be phantom bidders , its a large auction FFS !
and how EXACTLY does Michelle ensure that all the bidders are FTBs in the first place ???
we need clarity and confidence in Galway Michelle so hop to it .
If anyone does go to this take a video camera or digital camera with you, it would be nice to catch the sham bidders in action for a change. This is just a scheme to get people in a room and put them under pressure to bid up the price of a property and pay more than they would on the open market of they were actually interested in the property.
The only auctions that are going to be worth going to when they come up, are the repossessed properties that the banks want to offload in a hurry.
Great minds think alike…
Won’t it be great to have a tape where 5 different bidders are are driving up the price, & then the property doesn’t sell.
How will the Auctioneer explain that with five bidders, there wasn’t a legitimate bidder ?
Even the cowards at RTE would have to show that tape if it was offered to them !
No doubt it will be the holiday home in Burgas exhibition type of ringers strategically placed in the audience to hype it all up who will feature here. Plus with binding contracts signed on the day there is no ‘cooling-off’ period.
Could we alert the media to this? MB certainly will have the radio contacts with Newstalk.
I don’t believe it’s legal to have no cooling off period. It may be in the US where REMAX writes its policies for its agents, but I don’t think it is in Europe.
If written approval from a bank if a pre condition of bidding then a cooling off is not required but trying to get the bank to cough up could be another matter. I am sure the NCA has an opinion on this
The valuation of the property should come from a NAMED panel of valuers ( not just Michelle or Remax ones ) who are approved by the bank that has approved the mortgage .
But of COURSE there will be phantom bidders on the day and therefore Michelles procedure must be entirely above Board and published in detail and in advance in the Galway advertiser.
There is nothing to stop the vendors sister from getting written ‘approval’ showing Michelle the ‘apporval’ and phantoming away to their hearts content .
If I smell a rat in Galway I will post back here as a warning to all the other FTBs who could be conned at a Remax auction elsewhere.
What’s stopping both of you from doing it!? No legs? You have over 3,500 posts between you - sounds like there’s no end of enthuasism on property posts - how about something practical, like taking a mobile phone camera and posting ALL thses phamtom bidders that are going to appear?
Or perhaps all houses will sell because of the huge underlying demand out there, and that’s certianly not something you want to show I suppose!!
Only in your wettest dreams will they all sell €300k is 10x the average Galway income .
The auction process is itself a binding contract - that is the difference here. Once the hammer comes down you have entered into a contract that is enforceable. This is not like putting down a deposit on a promise to complete a contract.
Ah, fair enough. So you have to pony up the deposit at this auction too.
Yet another good reason not to get involved in it.
I’m sure Remax think it may well be a good idea. But as a FTB I’d run ten thousand miles before getting involved. It’s just under “buying off the plans” in terms of “least desirable way to buy house” options.