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

The Worst Auction Ever

The Worst Auction Ever
October 15, 2014 Josh Rowe

The Worst Auction Ever

I live tweeted a Coburg North auction last weekend.  Is this the worst auction ever?

– The agent quote for 10 Delta Ave Coburg North was $500,000 – $550,000.
– Two bidders kicked off the auction and it quickly reached the upper agent quote of $550,000.
– However, the auctioneer wouldn’t confirm if the home was on the market.
– Bidding slowed down to increments of $250 – yes, that is Two Hundred and Fifty Dollars ONLY.
– This bidding strategy was a costly mistake for the buyer.
– After the usual theatrical intermission, the auctioneer returned from receiving the vendor’s instructions and confirmed that the property was now on the market at $555,500.
– Two bidders continued to take rises of $250 to hit $560,750.
– One bidder attempted a knock out bid of $565,000, but failed.
– A new bidder (who ended up being the underbidder) joined the action at $565,500.
– All three bidders were still moving the price up in $250 increments.
– After what had seemed like an eternity the three bidders reached a price of $570,000.
– Then it was down to two bidders, now at $576,250 and then by $250 bids to $580,500.

Finally after 40 minutes of mostly $250 bids the property was sold for $583,750.

David Morrell’s advice to buyers for this type of situation is to bid aggressively and take control of the auction. By breaking the bidding down to smaller bids here – David has sometimes seen people pay $200,000 over the reserve on $1000 bids – the other people bidding think you only have $1000 left. No one can value a property down to $5000 or $10,000. So increase the amount of your bid. Turn up the heat on the opposition. If you are standing next to them, offer to toss them for the property.

The realAs.com prediction was spot on; 0.2% off and the agent quote was 17% off.

Did this Sydney buyer pay too much? The final selling price for 353 Catherine St Lilyfield NSW was 50% over the agent quote and 30% over the realAs prediction!

51 Scott St Mortdale NSW sold within 1% of the realAs Prediction

Thank you for all the replies to last week’s post, keep them coming.

 

Happy house hunting.
Josh Rowe, CEO realAs.com

PS Share this post with your friend or work mate who is house hunting

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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.


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