Why isn't housing a normal auction process?

[Kewitt]

Because that's not how real estate works.

Really real estate works a lot closer to an Auction then you think... More so when 2 people want the same place.

[seraphuslol]

Uh.. that's exactly how it is actually... especially if there's multiple offers for the parcel or property.

Not gonna argue. Reevaluate your statement after you actually buy a house

[Gyson]

If someone is willing to bid 4 million gil, they're willing to bid 4 million and 1 gil. Auction sniping is a real issue no matter how you spin it, the only solution is to have it so you have to outbid someone by a certain percentage, say 20%.

Then make your initial bid 4,000,001 gil if that's what you were willing to bid. You also have it within your power to set your max bid at 4 million + 20%. If you were willing to pay more than that, then obviously you're not placing your maximum bid and making yourself vulnerable to snipe bidding. That's why I said "bid the maximum amount you're willing to pay".. "maximum" meaning just what it means.

At a certain point there's a number where you're going to be saying "I'm already paying far more than I wanted to and refuse to pay even a penny more", and then if someone outbids you that's how the cookie crumbles (regardless of when it happens). Be honest with yourself (particularly when a smart-bid system is in place) and snipe bidding becomes meaningless.

Not gonna argue. Reevaluate your statement after you actually buy a house

Congratulations to you if you were fortunate enough to buy real estate in real life without entering a bidding war with other interested parties. Suggesting it doesn't happen is incorrect, though.

[seraphuslol]

Really real estate works a lot closer to an Auction then you think... More so when 2 people want the same place.

Housing market is polar opposite.

Material merchandise auctions (non estate) start low and progressively go up until someone wins by time or reaches the buyout price.

Housing markets do the opposite. Sellers start high and gradually lower their price to find acceptable buyers.

EDIT: I'm not saying bidding wars never happen, is just incredibly rare that housing does turn into an auction IRL.

[Kyuuen]

Not gonna argue. Reevaluate your statement after you actually buy a house

Housing market is polar opposite.

Material merchandise auctions (non estate) start low and progressively go up until someone wins by time or reaches the buyout price.

Housing markets do the opposite. Sellers start high and gradually lower their price to find acceptable buyers.

If a single offer comes in on the house then yes, you are right. However if multiple offers come in on said property then a bidding war can be started. In which it's the sellers option to choose who it goes to; which more often than not, will end up going to the highest bidder.

[Iromi]

Because that's not how real estate works.

But this isn't real life..its a fantasy game? And also that is exactly how it works..people place their offers for a house and then once the time is up, the seller chooses. So..wat? Of course if you build your own house then it is different ^.^

But yeah, houses don't usually go for auction like cars and so forth...but OP idea is better then what we have now. Either that or allow people to purchase one house only per FFXIV account! My FC have a large house and that is all we need tbh!

[Colorful]

At a certain point there's a number where you're going to be saying "I'm already paying far more than I wanted to and refuse to pay even a penny more", and then if someone outbids you that's how the cookie crumbles (regardless of when it happens). Be honest with yourself (particularly when a smart-bid system is in place) and snipe bidding becomes meaningless.

Then we have two different mindsets, if I think that 6 million is the most I'd ever be willing to pay, I'm going to go the extra mile and pay a few gil extra. I'm willing to pay 6,000,230 gil, but now 6,500,000 gil. A dungeon run gets me what, a few thousand gil?That's the ability to have a sniping war for quite a lengthy amount of time depending on how soon they snipe. All it really results in salty players and however places the last bid by some lucky miracle. Disregarding the sniping argument, there's still the situation where only rich players have access to even small housing. Are you honestly telling me those who play the game all day crafting and making hundreds of millions should be the only ones allowed to own a house? In what way is that a better system than what we have now? It's an alternative, in no way is it better.

[seraphuslol]

I understand this isn't real life, I also understand that people (including those in this thread) can't complain that they want immersion and realism and then cry when immersion and realism happen.

Also, unlike auctions, housing sellers can simply decide not to sell. Auction rules state that the item WILL be sold. That's not the case with real estate. Selling is at the discretion of the entity selling.

[Jeykama]

The main problem is that the housing prices haven't been adjusted since 2.38. There has been a considerable amount of inflation since with no new gil sinks. Dutch auctions are all good if people aren't willing to pay the max price, but here the max prices are cheap enough and land scarce enough that people will do it with an adrenaline rush in their haste.

Auctions by default take the ecosystem into account, and also give time for people to pay what they're willing (and any reasonable auction system would have minimum bid increments to prevent penny ante + time extensions to prevent obscene bid-sniping). True, the rich will win out over the lucky, but is it really fair to be lucky? Or maybe it will just make RMT more attractive, but I don't see that getting any worse. You'd get 80% back just by letting the land rot, so it's not like you'd losing everything by sinking gil into property.

One personal house per account should have been there from the start but it's too late now barring mandatory relinquishment (get full $$$ back I guess).

[Gyson]

Q:

Are you honestly telling me those who play the game all day crafting and making hundreds of millions should be the only ones allowed to own a house? In what way is that a better system than what we have now? It's an alternative, in no way is it better.

A:

While I disagree with the auction suggestion, snipe bidding only works when people are attempting to be cheap.

/10char