Commerical property/auctioneer

my_self

Hi all,

I found a commercial property that I'm fond of. I think the property is priced quite reasonably. The auctioneer informed me that there was a little over the asking price already on it. I took advice of friends, who said "the auctioneer is bluffing and that I should call their bluff". So, I put in an offer of the asking price, below what was on it. The auctioneer again told me it wasn't enough. My friends seem to think give it some time and the auctioneer will come running back. So, does ghost bidding really go on? It's been less than a week since my offer, how would you play it?

Part of me thinks my friends are right another part of me feels the property market is starting to pick up and I should up the ante. So, would you be concerned about missing out on a particular commercial property? I know there is a glut of commercial property on the market at the moment, but few are what I'd consider nice properties. Any opinions or advice greatly appreciated.

euroboom13

Make an offer that your happy with.
Then inform the auctioneer that you have found another property that fits perfectly and that if you can't go sale agree with in 10days you will be withdrawing.(this will prevent the auctioneer peddling your offer to other buyers to up the bid)

All property will fall in value next year!
1)new lending regulations.
2)end of capitol gains exemptions.2014

I feel bad even giving you this advise because already you want to(or are willing to) get into a greed driven bidding war, Which is the kind of stupidity that has this country ruined.

Commercial property is not like residential and is subject to rates.
goodluck

ToxicPaddy

A lot of people forget that an Auctioneers job is to sell a property and get as much as possible or as close to the asking price for their client, the seller.

Yes, a lot of them do resort to underhanded tactics like claims about ghost bids etc. But if you stick to your guns and don't play their game it may work in your favour.

But in the end it's your call.

NewCorkLad

I dont think this would be a good strategy for the auctioneer if it was a ghost offer. Surely he would have accepted your offer first to get you invested in the property and then come back with a higher offer. Decide how much you are willing to spend and put in a higher offer if you feel its worth it.

euroboom13

Its for a private sale not an auction, bids are for auctions. offers are for private sales, bidding on a private sale is bad practice , at least at an auction house you see the other bidders(rep).

Make a final offer if you like, but walk away then or prepare to be robbed!