Often, at an auction, the first bidder to reach a round number ends up buying the property. When buying property, most people think round numbers in big increments, i.e. $100,000, $50,000, $25,000, $10,000 and $5,000 lots when setting their limit. No one thinks in terms of a specific number, such as $428,200. Because they don’t bid and value the property each weekend, they tend to round off numbers. When instructing someone else such as an uncle, aunt or brother, to bid on their behalf they usually set a round number as the limit and it’s usually a big one, eg. $500,000 or $600,000.
Often potential buyers will have two round numbers, eg. ‘We would like to buy it for $450,000, but we will go to $475,000 if it looks like we might be able to buy it.’ If they are bidding for themselves, it’s often a spur of the moment decision: Let’s try another $20,000 and see if that will secure it.’ I always suggest that purchasers have two extra bids, other than a round number. The opposition may get to the round number first or add an extra thousand and then you lose the property by $1000.
Those who secured their home by bidding in a round dollar amount ending in “000” were in the clear majority. Over 90 per cent of sales in May 2015 were sold with the very clean “000” on the end. The next most popular winning bid ended in “500” the half way mark to one thousand dollar increment.
However, it’s not until the tenth and final spot on our Top 10 list that the lucky number “888” pops up. In Chinese numerology, 888 has a different meaning, triple fortune, a strengthening of the meaning of the digit 8. For this reason, addresses and phone numbers containing the digit sequence 888 are considered particularly lucky, and may command a premium because of it.
The winner bidder at the auction of 135 Fox Valley Rd, Wahroonga NSW secured the home with a bid ending in lucky “888”.
Whilst the home buyer for the private sale of 2/6 Prentice St, Altona North VIC secured the home with a rare ending of “099”.
Have you used odd numbers in your property buying strategy? Did it work for you or did someone else just round it up to the next $1,000?