Hi All,
As the title suggests, what would be your suggestions on bidding in a hot market.
We are looking at a property that's on auction and is likely to get a lot of interest due to the local school, proximity to trains, shops etc. To add, the house is in knockdown condition on a corner lot. We can put a double story house and a granny flat (with it's own street frontage). Total costs including purchase are around $950k-$1m (generous budget, assuming purchase is around $550k). However, we expect the end value to be around $1.1m - 1.2m. So naturally, there would be various interested parties. We aren't so emotional, but given the location, the numbers stacking up, we'd like to acquire it.
We attended an auction in August, for a 2 year old house, where the first bid was $830k (in an area where the average price was $550k not long ago). The bidders thought they would have it in the bag, but that was their first and last bid with the property selling at a record $890k.
So clearly, if we think we have a budget $x, there could be someone with a budget say $x+more. We can't control what others are willing to spend, but we want to be managing our max effectively as we do see value in the purchase.
So what would be your bidding strategy? I have seen people not bid till the end. But another one is being aggressive.
Appreciate your input.
Thanks,
MsAli
As the title suggests, what would be your suggestions on bidding in a hot market.
We are looking at a property that's on auction and is likely to get a lot of interest due to the local school, proximity to trains, shops etc. To add, the house is in knockdown condition on a corner lot. We can put a double story house and a granny flat (with it's own street frontage). Total costs including purchase are around $950k-$1m (generous budget, assuming purchase is around $550k). However, we expect the end value to be around $1.1m - 1.2m. So naturally, there would be various interested parties. We aren't so emotional, but given the location, the numbers stacking up, we'd like to acquire it.
We attended an auction in August, for a 2 year old house, where the first bid was $830k (in an area where the average price was $550k not long ago). The bidders thought they would have it in the bag, but that was their first and last bid with the property selling at a record $890k.
So clearly, if we think we have a budget $x, there could be someone with a budget say $x+more. We can't control what others are willing to spend, but we want to be managing our max effectively as we do see value in the purchase.
So what would be your bidding strategy? I have seen people not bid till the end. But another one is being aggressive.
Appreciate your input.
Thanks,
MsAli