Choosing to go to Auction in the Sydney Property Market
Recently I was bidding for some clients in Randwick. After finishing my price research I realized that the agent was quoting more than what I thought the property was worth. I thought it was worth between $2,450,000 – $2,500,000. I then advised my clients the best strategy was to wait for the auction. I suspected the vendors wanted more than what the property was worth as it was being quoted at $2.6.
We are moving into a buyers market, more property is being passed in, price guides are not being met at auction and we are seeing a slow decline in value across the stats of Sydney – just slightly and its across the board.
In today’s market I hear a lot of buyers talk about ‘buying property before auction’. This can be good in the right case, when there is competition however, it has to be a case by case scenario, reliant on very thorough price research and strategy. If I think a vendor is wanting more than their property is worth, in this cooling market I will often opt for going to auction on it – it can be scary but you need to be very clear on pricing.
My days of being a selling agent taught me that when a vendor is over priced, receiving an offer well below their dream price midway through an auction campaign, is not going to get them excited to sell. If you are going to put an offer in under the guide price it may in someway condition the vendor but it may not buy the property.
In this case we went to auction and as I suspected the reserve was high, set above $2.6. I used my proven buying techniques to be the highest bidder even though we had 4 other bidders against us.
The property was passed in I then negotiated with the agent to buy it under the hammer on the night well under the vendors reserve – we bought it for $2,473,000. For this buyer, I let the auction do the heavy lifting and secured a great price for my clients.