Steve Koerber's Old Blog

Remuera's house sold name since 1998 – 021864166

$1 Reserve and No Reserve auctions

Posted by Steve Koerber on May 31, 2008

Yesterday (31 May 2008) a West Auckland home went under the hammer with a $1 reserve price and fetched $395,000.  The owner had paid $400,000 for it 12 months earlier.  At the time of writing this post, many owners who purchased 6 or 12 months earlier are selling for 5 – 10% below their original purchase price.  Many sellers who are pricing their homes just above what they paid 12 months ago are not receiving any offers and are experiencing (and arguably contributing to) a “slower” market.

Since 1999 I have conducted two “no reserve” auctions.  Both of them were very well attended and both properties sold for good prices, very close to vendor “hope” prices.  If marketed widely, no reserve (or $1 reserve) auctions are a great way to sell.  I know of another “no reserve” auction that sold for a good price also.

Every time I hear “no reserve” auctions discussed, I hear people say “they’re not for the faint-hearted”.  Based on the results I have observed, I would have to disagree.  They work well.

Has anyone heard of a “no reserve” or “$1 reserve” property auction that has failed dismally?  

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