{"id":35505,"date":"2021-11-08T11:20:37","date_gmt":"2021-11-07T22:20:37","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=35505"},"modified":"2021-11-08T11:20:37","modified_gmt":"2021-11-07T22:20:37","slug":"the-block-2021-five-questions-to-come-out-of-the-auctions","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/the-block-2021-five-questions-to-come-out-of-the-auctions\/","title":{"rendered":"The Block 2021: Five questions to come out of the auctions"},"content":{"rendered":"

PHOTO: Who were the buyers? And did the auction order really matter?\u00a0Photo:\u00a0David Cook<\/span><\/strong><\/p>\n

There was plenty of action at this year\u2019s auctions: quirky bids, nervous starts and unexpected results.<\/p>\n

Let\u2019s look more closely at some important factors that might have shaped the results.<\/p>\n

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THE BLOCK: What really happened in the show\u2019s cheating scandal<\/a><\/h2>\n<\/header>\n<\/div>\n

Did the Fans teams redeem themselves?<\/h3>\n
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Mitch Edwards and Mark McKie, who came last in their previous appearance on the show, redeemed themselves by winning the 2021 season. Photo: David Cook<\/strong><\/em><\/figcaption><\/figure>\n

Mitch Edwards and Mark McKie, and Ronnie and Georgia Caceres were pitted against three new couples on this year\u2019s Hampton season, Fans v Faves.<\/p>\n

Both returning fan favourite couples benefitted handsomely \u2013 the Caceres pocketed $296,000, and Mr Edwards and Mr McKie won the series with a total prize purse of $744,444.44.<\/p>\n

Despite the size of Caceres\u2019 winnings, the sum placed them last of the five teams this year, raking in the smallest amount over reserve at auction.<\/p>\n

They\u00a0endured a stressful auction in 2017\u00a0when they debuted on the Elsternwick season of the show. Their property failed to sell under the hammer, but a buyer later emerged, providing the couple with a profit of $161,000.<\/p>\n

Their popularity with the audience that year compelled Nine to sign the Perth-based parents, who launched their own renovation and design advice show, Quick Room Flips with Ronnie and Georgia.<\/p>\n

Their house, which was part of a chic overhaul of a derelict and seedy former backpackers\u2019 hostel, was the most viewed listing online, but at auction, they won the least amount of money, taking home $384,000.<\/p>\n

How can the reserves be so high?<\/h3>\n
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A strong Melbourne property market means the reserves were a shock to the contestants. Photo: David Cook<\/strong><\/em><\/figcaption><\/figure>\n

Each of the properties had a reserve price \u2013 the minimum amount a seller will accept for the property \u2013 that is higher than the price guide given to interested buyers.<\/p>\n

Houses 1, 2 and 3 had publicly advertised price guides of $2.8 million to $3 million, but each had a reserve of $3.4 million.<\/p>\n

House 4 was listed with a price guide of $2.6 million to $2.8 million and also had a reserve of $3.4 million.<\/p>\n

House 5, on by far the largest block of land on the show, had a price guide of $3.6 million to $3.8 million and a reserve of $4.1 million.<\/p>\n

It is not uncommon in Melbourne\u2019s real estate market for vendors to set a reserve higher than the price guide provided to buyers, and there is no law requiring a reserve to match the price guide. It is a situation\u00a0that can leave underbidders confused.<\/p>\n

It is also not evidence of underquoting for a reserve to be set higher than a price guide or for a property to sell well above its reserve due to unexpectedly strong interest on auction day.<\/p>\n

Underquoting is very hard to prove. By\u00a0definition, it can occur when a property is advertised at a price that is less than the estimated selling price, is less than the seller\u2019s asking price, or has already been rejected by the seller.<\/p>\n

This means a selling agent and vendor can discuss their reserve price only on the morning of an auction after receiving buyer feedback through the campaign and set it at a level that may be different to the price guide.<\/p>\n

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