It is no surprise to see agents advertising auctions with no listed price.
The almighty Auction was invented to create demand, increase competition and ultimately ensure a house sells for the highest possible amount. Getting the most buyers there on the day is the perfect way to guarantee a happy vendor … and agent.
How bad is it?
An analysis of sales in the past 6 months has revealed how often this strategy is used. It is estimated that almost 3 out of 4 auctions in NSW are advertised with no listed price (74%). Despite the improvement from last year (80%) these numbers are still incredibly high and can be frustrating to buyers who are looking to attend auctions.
However, this figure is much better for privates sales in NSW. Only one third (32%) of properties sold came with price information in 2018, up from 27% in 2017.
How do you approach a property with no listed price?
If you’re looking at a house with no indication of pricing or starting reserve, follow these three easy steps:
- Get the best understanding of the value of the property and what it is likely to sell for.
- Make sure you keep your cards close to your chest and don’t reveal anything you shouldn’t to the agent.
- Bid sensibly on the day with a well thought-out strategy.
These tips will ensure that you know enough about the property before the auction day and make the right offer once you get there.
It’s not always that bad
Although the numbers are high, there are also many suburbs around Sydney that are usually much more generous in offering price information. Have a look at the top 5 suburbs with reliable pricing;
*numbers are based on analysis performed on a sample of properties sold in 2017 and 2018.