WHEN two properties go to auction in the Whitsundays next week, potential buyers will know the reserve price.
A beach front cabin at Peppers Palm Bay on Long Island and a block of land at Jubilee Pocket are both being offered by Harcourts Airlie Beach – and the reserve prices will be disclosed.
Agent David Telford said disclosing the reserve prices showed that the owners really want these properties sold on the night.
“It should be interesting to see the reaction to the marketing as I think the owners decision is a very brave one as the reserves for an auction property are usually never disclosed,” Mr Telford said.
“Come Auction night we only need the one buyer and as long as they bid at or over the reserve they will be the lucky new owner.
Mr Telford said he had never heard of disclosed price auctions before.
“To do something new should make for an exciting night,” he said.
The auctions will be called by David Treloar who is the chief auctioneer for Harcourts Queensland.
He has called 4,000 auctions in Queensland over the past four years and has never disclosed a reserve price.
Mr Treloar said the reserve price was well under the public perception of the value but the vendors required an urgent sale and had priced the properties accordingly.
“The property market is struggling so we must do things differently,” he said.
“We must be pro-active and not re-active.
Mr Treloar said the only legal requirement to disclose the price was that the agent had written consent from the sellers.
“Otherwise, it would be against the law for an auctioneer or an agent to disclose the reserve price,” he said.
The cabin at Peppers Palm Bay has a reserve price of $130,000 and the block of land in Kingfisher Terrace in Jubilee Pocket has a reserve of $100,000.
The auctions will be held at Peppers Coral Coast in Airlie Beach at 6pm on September 20.
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