REALas Australia’s most accurate property price predictions
REALas Australia’s most accurate property price predictions

Single Bid TKO

Single Bid TKO
March 3, 2015 Josh Rowe

Single Bid TKO

Perched high on Coonans Hill – this home truly did have city views. It was auction day, the sun was shining and a large crowd had gathered. How many were nosey neighbours assessing the value of their own home and how many were real home buyers?  Located within the enrolment zone of the popular Strathmore Secondary College but within ear shot of the Tullamarine freeway and Essendon airport.

– The median price for a 3 bedroom house in Pascoe Vale South is $711,000.
– The real estate agency quoted a price range of $700,000 – $760,000
– The realAs prediction was $817,000

Here’s how the auction unfolded.

Truth in real estate …

No one ever wants to be the first bidder.

First real bidder.

More join the fray.

Multiple bidders make real estate agents and vendors happy.

That’s right, even though the property was now $15,000 over the real estate agency’s top quoting range it was still not on the market. Home buyers were clearly not happy with the auctioneer.

The bidding continued in quick succession.

Then it finally passed the vendor’s reserve price with a bid of $825,000. The real estate agency’s quoting range was $700,000 – $760,000.

That is a $125,000 – $65,000 difference between the real estate agency advertised quoting range and what the actual vendor reserve was.  Underquoting wastes home buyers time, money and causes heart ache.

It seemed as though the bidding was about to conclude with the auctioneer calling the property once, twice … then all of a sudden a new bidder arrived with an $12,000 increment to $837,000.

This was a single bid Total Knock Out. By bidding boldly and in an odd number this home buyer successfully secured a home.

The wash up was that the:
– real estate agency quote range was 20%-10% off
– realAs prediction was 2% off

realAs-Predicts-2-Mar-2015-square-results.001

More homes in Pascoe Vale South VIC.

 

 

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    The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of REALas.