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Auction history will be made when a Sydney property hits the market on Valentine’s Day for $1.
Starr Partners Fairfield director Raj Bhandari is handling the sale of the Blacktown property, which has four bedrooms, two bathrooms and sits on a 576-square-metre block.
Mr Bhandari told Real Estate Business he is certain this is the first time a $1 reserve has been set in NSW.
He said the high-risk, high-reward strategy was the idea of the vendor, Neil Tyagi, and that he tried to talk him out of it.
“I told him it was crazy. The risk he’s taking could exceed the result he gets from the increased competition,” Mr Bhandari said.
“He’s a businessman and he said he’s always taken risks. He asked me what happens if bidding stops at $400,000. I told him, ‘Mate, you’re screwed.’”
The median house price in Blacktown is $521,000, according to CoreLogic RP Data.
Mr Bhandari said his office had received more than 2,000 phone calls since the property was listed last Saturday night.
“I haven’t been sleeping since we started working on it. He’s made a decision and he’s chosen Starr Partners Fairfield to look after it, so we want to make sure it’s done the right way,” he said.
“Our head office is involved and our team is involved in making sure that the publicity through social media and through our property channel is enough to bring plenty of competition.”
A normal Blacktown auction has five or six registered bidders, but this property is expected to attract four or five times that amount, according to Mr Bhandari.
“We believe that if there are 20 people competing for this home, even if they’re looking for a cheap value at the beginning, it will eventually give us whatever the optimum price is and the real value will come.”
Mr Bhandari has made a marketing video in which the vendor admits that everybody thinks he has gone “nuts” for setting a $1 reserve.
Mr Bhandari wouldn’t disclose what he believes is a fair value for the property, but he said he was confident the auction would succeed.
“We think we’ll get the optimum price, because we’re putting in a lot of effort in marketing now to make sure we’re not caught red-faced on the day,” he said.
- <p>Obviously the auctioneer/agent will use a vendor bid that will then unofficially set the reserve....!</p>0
- <p>David Willis, Im in Sydney NSW Australia the same place as this property in Blacktown NSW Australia. In NSW vendor can do ONE vendor bid anytime before the fall of the hammer at any price they want even if bidding is over the Reserve..</p>0
- <p>This attracts way more buyers both uneducated and educated, attraction them to get their hopes up, regardless they couldn't achieve their offers over $560,000 from early Nov after 90 days and i'm sure he would of had a reasonable offer at that time, why didn't he accept, who knows if the vendor will achieve a price over at auction but really i doubt he hill accept $400,000 or $20. Pulling the last Strings.</p><p>This has drawn a lot attention and buyers, before auction commences Vendor may say "lets change the reserve price".</p><p>Great job on marketing</p>0
- <p>Vendor bid of..... This will never go cheap - just a way to drum up some free press and marketing to boost the agencies profile. Doesn't benefit the buyer or the seller - as always, agents making the most of this as a cheap opportunity to peddle their wares....</p>0
- <p>its not that...that's for sure!</p>0
- <p>Agent88, I don't know where abouts you are, but in WA, the seller can not bid above the reserve. Good on the seller I say! Just because something is "different", or hasn't been tried before, doesn't make it deceptive.</p>0
- <p>Certainly clever marketing !! Not under quoting ..The reserve has been shared ( not normal practice) and the owner ,who suggested this is, is prepared to take the consequences .There is not an unrealistic price guide given to purchasers to bait them however i would expect there will not only be a lot of keen purchasers there ,but a lot of sticky beaks , media etc ..Good luck</p>0
- <p>If ever a movie is made called 'Cloud Cuckoo Land' guess where they will do the filming?</p>0
- <p>If the vendor bid is not waived its actually deceptive in my opinion as they are giving the indication someone could get a bargain when they cant..</p>0
- <p>So have they agreed to waive the vendor bid ?? If not it doesn't mean jack if there is no reserve vendor can still put in a bid at what ever price he wants if bidding falls short.. If they haven't waived the vendor bid then this is just BS</p>0
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