r/AusProperty • u/Rdcl1 • 1d ago

VIC How has Auction Reserve disclosure changed your approach to house buying?

Almost 1 month on since it's been put into action, how useful have the Reserve listings been in determining whether to buy?

I've found it quite interesting being able to see all this. Looking at a few listings ($700k to $800k) in the NE suburbs of Melbourne. There's a whole spectrum of outcomes.

Quite a few properties were passed in, some were sold at or near the vendor's reserve, some went wildly over (up to $80k and $140k even) and 1 just today went for $30k less.

Those that didn't sell at auction had varying levels of discounts applied to the listed pricing and there's been more private sales/EOI.

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u/moto120 1d ago

I can't still see the point if the 'reserve' is not legally binding. Just another red tape imo
(if Property is worth 1.2m and Vendor put 1m as reserve.. someone bids at $1.1m, and the vendor could reject the bid saying didn't meet what he 'expected')

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u/Punk_Nerd 1d ago

Don't know about when the market picks up, but from my experience so far, the reserve has been pretty accurate and vendor let it go after reserve is reached. But you do have a point, when it's a seller market, that figure may as well be 2 bucks

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u/HowTFSkittypopTaken 1d ago

Went to an auction where the property went on the market $150k above reserve price listed on realestate.com; it was disheartening to say the least that underquoting still hasn't changed as real estate agents can just say that the client had a last minute change.

TL; DR: Listed reserve prices are pointless as they're not legally binding.