Far from inflamatory journalism, this article (follow link on the NEWS icon) is quite accurate. According to our experience, sales agents are NOT quoting 'on the money'...When a Sales Agent reveals how much a property is likely to sell for at auction, the figure is typically 20% under the actual selling price.
I know what you're saying to yourself. "Surely they wouldn't do this!" Alas, it's true.
The agent tells you the property is expected to go for $800k and you attend the auction with a good chance to buy, only to see the bidding approach the high 900s. Another weekend wasted.
We recommend buyers seek independant property appriasals prior to bidding at an auction. Discard the agent's valuation, as they are obliged to serve the interests of the owner - not the buyer.
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1 comment:
So true Marty, having interest in the property always makes for a good story to tell the Seller ... but is also good for the Auction.
Having a heap of lower end bidders to stimulate the early activity in an auction is also good for raising the emotion and excitement of an auction, and this is what agents and auctioneers want ... excited emotional buyers in a bidding frenzy with each other ... pushing up the price at every point of the auction.
The only way to aviod this is to educate yourself on the prices in a suburb and street by visiting agents, performing research and understanding what is really happening in the market.
Yours in Property
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