Auction Price Guide Misconceptions

Auction Price Guide Misconceptions

A need to investigate real estate agents who are deliberately misleading the public in relation to price guides for auction campaigns has been raised by an article in the SMH (21.07.07).
“At the heart of the problem is the industry practice of giving a “price guide” which is meant as a clue to the true value of a property. But several sales in the east have been so wide of the mark that buyers have been left wondering whether they were deliberately misled.”
The investigation will look at an Edgecliff terrace that sold for $1.42milliion despite being advertised for more than $1.2 million, a Woollahra property selling for $1.475 million after being quoted as “above $800 000” and a flat in Bondi selling for $1.6milllion when it was suggested it would sell for more than $800 000.
These figures demonstrate that price guides being speculated to the public are misleading potential buyers. Essentially the issues that this creates is that by under speculating the true value of a property during an auction campaign, greater interest from the public can be gained and in turn a larger show of people on the day of auction will result in more competition during bidding which will inevitably increase the auction result. This is why we are seeing such huge differences in the values of properties being advertised and their actual auction result.
By utilising the service of Platinum Buyers Agent this problem can be avoided and time saved as all properties are thoroughly researched and a reasonable value of the property can be indicated.
Buyers Agents do not work specifically for the vendor, so unlike agents who are trying to sell the property at the highest possible price to keep the vendor happy, buyer’s agents are working to save the purchaser time and money. They are dedicated to assisting the buyer find the right property without the normal stresses that are involved and without the bias that exists between the vendor/agent relationships.
Platinum Buyers Agent specialises in researching, sourcing and negotiating the purchase of quality homes and investment properties in Sydney.
“Australian Property Monitors figures show auction clearance rates have hit 80% in the east, 72% on the lower north shore, and 74% in the inner west” which indicates that many vendors are using auctions to sell their property. Given the evidence of property being undervalued by agents, contacting a buyer’s agent such as Platinum can save you both time and money and offer the best strategy to secure the right property at the right price.