House auctions corrupted, highest bids refused on “no reserve” houses

Re-posted from my original blog. With additional stuff about a 2010 case added at the end.

Here’s something I wrote on my original blog November 16 2005. I wonder how it eventually turned out ? I never heard, so perhaps they hushed it all up !

SCUMBAGS SATTERLY’s REAL ESTATE agency Corrupts WA TELETHON house auction fund-raiser
This weekend, saw the WA state’s annual Telethon fundraiser for the children’s hospital in Perth, as televised on Ch 7 in Perth and GWN in WA state country areas.

Now I don’t watch this program generally, but did see the last half-hour or so, as I was watching for the program following to start.

A regular event is the Telethon House auction fund-raiser. Held live on air, and with statewide tv coverage, including substantial televised promotions before the auction, and the auction itself. A house is built each year, the land, materials and labour all being donated by various suppliers and companies. Therefore the house cost is “free” and all money raised at auction goes into the Telethon coffers

As such, the house is (or *could* be, and arguably *should* be) auctioned on a “No-Reserve” basis.

Now although I didn’t see the auction component of the Telethon itself, there seems to have been something seriously screwy about this most recent auction.

As the Telethon was concluding, they babbled and waffled and generally spewed shite from their mouths and pitifully announced that they could not tell the audience what price the house had ultimately been sold for, and how much it had benefited the Telethon appeal, because apparently the auctioneer had refused to allow the sale to be confirmed to the highest bidder……

Der, say what ! They went onto say that the auctioneer was negotiating with the 5 highest bidders.

Der again, say what again !

All I can say is that, my understanding of an auction-without-reserve, is that the highest bidder gets to buy it, at the price he bid. I feel sorry for the guy that made the winning bid and was then apparently denied the property, unless he was prepared to enter a further, extra-auction bidding war, with another 4 or 5 of the auctioneer’s Yobbo mates, whom he rapidly rounded up to drive the price up more !

Note that the highest price bid was somewhere in the region of $700,000 anyway, certainly putting the Telethon fundraiser home far and away out of the reach of normal people.

You know there’s something pretty scumbag about the whole principal, of auctioning of a luxury type house, which is a very “exclusive” event. A far more “inclusive” way would be to RAFFLE the house off in a lottery with tickets at say $10 each, that way many many more folks could have a chance of being involved in this major aspect of Telethon fundraising.

I have always been highly suspicious of the auction system as used for house and land sales, and this is only made worse by laws which allow owners to make *dummy* (pretend) bids on their own properties (even though they have zero intention of buying them off themself, etc)

This latest debacle re the Telethon fundraiser house……ggrrr …..all I can say is I hope the highest bidder gets the house at his original winning bid and if necessary he sues the real estate agent conducting the auction, to make him honour his original winning bid, at the winning bid price (not some higher price that the auctioneer plucked out of thin air, then somehow forced on him, later, after the event)

*IF* the house IS auctioned, but with a “reserve” then how can they possibly justify a reserve on a “free” house. They can’t claim there was a “poor turnout” or etc, as it’s always televised and always huge. Surely the highest price bid, is the property’s true, and maximum value…..on the day, and the place should goto that bidder, whatever that price might be…….even if it’s a bit less than what the Chardonnay sipping, Camargue driving auctioneer reckons he’d like it to sell for !

Ha, those bastards pulled the same scam again, in 2015, they refused to accept the highest bid at auction. Given that the house and land were donated, how can they justify setting such a huge “reserve” that even spirited bidding amongst several folks, and the bastards STILL failed to sell the house to the highest bidder on the day. It really is starting to look, as if EVERY SINGLE HOUSE AUCTION is an utter fit-up job !

A url below has been tested and working, as of 7 April 2017.

http://www.perthnow.com.au/news/telethon-home-auction-dalyellup-homebuyers-have-a-second-chance-to-buy/news-story/15d9327e40d5b9ac8b5a69c28f4ba0a1