Auctions and Selling Prices
I had another busy week with eight inspections and two Auctions.
The first auction was for a modern and very well presented (9.5/10) four bedroom family home with a guide price of $1.6 million. The bidding began in the $1.5m’s with four very interested Buyers but two of them were quickly out of the race as it hit $1.65m. [Note the ‘price guide’.]
The two Buyers that were left weren’t very invested in the process, and I believe this was mainly due to the Auctioneer who would not accept increments of $20,000 or $25,000 instead forcing Buyers to go up by $50,000 each time. They just stood there for a few minutes, no doubt as stunned as we all were. I think this was an unproductive tactic as the Auction was stalled many times and people even started to leave!
The property passed in at $1.74 million even though the guide had been $1.6m.
The house sold a week later for over $1.8 million! The disappointing thing here for Buyers is that some of them felt they may have had a chance at $1.6m when in fact there was no way the owners were selling anywhere near this price.
I also attended an Auction for an older style three-bedroom villa, built around the late 90’s / early 2000’s. As this property was tenanted, the presentation overall was probably a 5/10.
The guide price was set at $1.3 million. There were around six bidders to start and the bids flew back and forth very quickly between them. Bidding started at $1.25m and it was non-stop in smaller increments and after 25 minutes sold for $1.55 million!
You only need to go to a few Auctions yourself to find many other examples such as these. Seeing the disappointment in the faces of some of these Buyers, especially the ones that felt they may have a chance at securing the property only to find out within a few minutes that they don’t have the budget for the property, is unfortunately quite common in these scenarios.
Working with a Buyers Agent to secure a home especially in areas where Auctions are common practice for selling, is an absolute game-changer. When you're investing your hard-earned money into a property, you can already be see there's so much more at stake than just the final purchase price.
A Buyers Agent can help navigate the complexities of the market, ensuring you don't overspend on additional expenses such as pest and building reports, strata reports, or conveyancers without good reason. They have the expertise to negotiate on your behalf, potentially saving you thousands of dollars.
They'll be your invaluable partner in making informed decisions and ensuring you stay within your budget, while still securing your first home, investment home or dream property.
Let’s start a conversation to see how I can help you buy your first home, dream home or investment home. Most importantly, we will discuss how I can work with you to save time, stress and of course, money!
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