Sometimes we go to auctions on ended up selling for a price way in excess of what the agent was quoting. How can that happen?
One of the major tools that agents use is this, to create a situation where they’ve got competition. And like a fisherman who casts their net as wide as they possibly can to catch the fish, that’s exactly what the real estate agent does - and their major tool is under quoting to do that.
Now there is legislation in place that is meant to protect buyers from agent under quoting. But the problem is that agents are really gonna try to quite as little as they can get away with in order to build up that competition. So what should we look out for?
Agents under quote to create competition.
The guide is irrelevant to you because you need to have a look at recent sales that are comparable to the property that you’re looking to go to auction on, so that you now what the process are, how they compare to the property that you’re looking at so that you can get a realistic idea of how much you will need to pay at auction to secure that property and we we talk about this all the time.
We see hundreds of people spend money on building and pest inspections, getting solicitors to check it out, spending a whole lot of time and energy to buy a property, turn up at auction and within three bids they’ve been totally ah put out of the race. So its important that you understand what it's worth. Not necessarily what the ah real estate agent says the guide is
Research comparable sales
Know true value before spending. When you understand property values and you understand what you should be paying for the particular property you’re going for, you'll go to the auction with your asset limit in mind before you get there.
When you get to auction, bid bravely, bid strongly and bid confidently because of all the tactics that i’ve ever seen people talk about and people do at an auction, generally speaking there’s only one that really works, and that’s when you arrive confident, you look like you’ve got money to pay and you confidently are professionally intimidating other people into thinking that your here to buy no matter what.
Good luck at auction!