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Million Dollar Underquote

Million Dollar Underquote
February 23, 2015 Josh Rowe

Million Dollar Underquote

It was no normal auction.  A coffee van was parked in the lane to stimulate the synapses of potential bidders.  A camera crew, presumably hired by the real estate agency, recorded the event.  There was excitement in the air.  At least one journalist and two buyer’s advocates were in attendance.

With no expense spared, this was either going to be a hot auction or the real estate agency was wasting a whole lot of marketing dollars on nothing.

The quoted price from the real estate agent was $1,500,000+

The opening bid came from a buyer’s advocate at $1.5m and three more bids took it to $1.7m. The advocate asked if the property was on the market which the auctioneer declined to answer.

Four more $50,000 advances took the property to $1.95m. Where the auctioneer gleefully declared that the property was on the market; 30% above the quoted price.

The bid ticked over $2m with new bidders joining the fray.

With seven real bidders the contest continued.

Bidding slowed, finally reaching $2.43m …

… and that was where it was sold almost one million dollars over the agent quoted price.

David Morrell stressed that Middle Park buyers did not need to panic but might need time to digest that it was a one-off result.

“This is not indicative of the market, I cannot stress that enough, this was always going to be an out-there auction,” Mr Morrell said.

“If someone goes off and buys something on the strength of this, this afternoon, at an over inflated value, then they are an idiot. Sit in the corner, have a Bex and a lay down.”

How did the real estate agency get their quote so wrong?  Was the quote deliberately misleading, did the agency not know their local market or was this truly an unexpected result?

 

 

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