Buyer interest in $X meaning?

[TMNT]

throguhout all my years, I still dont understand every agent saying this as to prior an auction

What does it mean, people simply dont say, "well Im going to bid this much at auction" or " I think its worth $x"

in my opinion, I always mention a lower figure to condition the agent

plus in my experience, ive never been asked by an agent "what do you think its worth"

 

[property_girl]

I've been asked plenty of times, after an open inspection, how much I think a place is worth. I am happy to tell them if I am not interested in buying.

 

[Jacque]

throguhout all my years, I still dont understand every agent saying this as to prior an auction

What does it mean, people simply dont say, "well Im going to bid this much at auction" or " I think its worth $x"

in my opinion, I always mention a lower figure to condition the agent

plus in my experience, ive never been asked by an agent "what do you think its worth"

You obviously haven't been to enough inspections for auction properties

Agents ask for price feedback from buyers to pass onto their vendors (usually assists with conditioning down if they've bought the listing at an unrealistic price) and so they have a benchmark come auction day. It may also help the vendor in setting a reserve to both meet the market and ensure that they are all on the same page. In the current rising/growth market, however, it's not required as much hence the reason you may not have been asked.

 

[TMNT]

You obviously haven't been to enough inspections for auction properties

or maybe im just grossly ugly!?!?!?!?!

 

[perthguy]

plus in my experience, ive never been asked by an agent "what do you think its worth"

I was asked that question on the weekend. I was just looking at townhouses because I'm building and this one was out of my area so I had no idea of the price.

I was asked on other time on a property I was potentially interested in. The place was a total dump with a lot of issues so I lowballed the agent. Didn't work though

 

[property_girl]

You obviously haven't been to enough inspections for auction properties

... In the current rising/growth market, however, it's not required as much hence the reason you may not have been asked.

I agree with you Jacque, as I have only been asked the question when the market was flat or on its way down. The agents were trying to get a feel for what the market would pay and relay it to the seller.

 

[skater]

I agree with you Jacque, as I have only been asked the question when the market was flat or on its way down. The agents were trying to get a feel for what the market would pay and relay it to the seller.

Agreed! I've been asked plenty of times too.

One especially springs to mind. Listed for auction by an out of area agent. Small add in the local rag, but not with any of the other real estate stuff. Only available for viewing at open homes, one during the day on a Wednesday, the other on a Saturday.

I went by myself on Wednesday, told the agent it was worth $170k.

Hubby went by himself on the Saturday, told the agent it was worth $170k.

Nobody else turned up at any of the inspections. Agent thought he had two bidders. Reserve was set at $170k.

We would have been the only ones at the auction, except another investor was driving past & saw the signs. He bid against us, but we got it for $180k. It was worth $240k.

 

[Macca]

Agreed! I've been asked plenty of times too.

One especially springs to mind. Listed for auction by an out of area agent. Small add in the local rag, but not with any of the other real estate stuff. Only available for viewing at open homes, one during the day on a Wednesday, the other on a Saturday.

I went by myself on Wednesday, told the agent it was worth $170k.

Hubby went by himself on the Saturday, told the agent it was worth $170k.

Nobody else turned up at any of the inspections. Agent thought he had two bidders. Reserve was set at $170k.

We would have been the only ones at the auction, except another investor was driving past & saw the signs. He bid against us, but we got it for $180k. It was worth $240k.

I find it weird that people don't do any work themselves, simply monitoring the local ads for a month will assist greatly in finding a ball park figure as a reserve.

 

[Big Will]

I find it weird that people don't do any work themselves, simply monitoring the local ads for a month will assist greatly in finding a ball park figure as a reserve.

Or jump on to the sold section of realestate or domain and assess the sold prices.

 

[skater]

I find it weird that people don't do any work themselves, simply monitoring the local ads for a month will assist greatly in finding a ball park figure as a reserve.

Shhh! Not so loud! I like incompetent Agents!

 

[property_girl]

Or jump on to the sold section of realestate or domain and assess the sold prices.

I think that when the market moves so quickly (as it does in Canberra)-- especially when it's going downwards--the agent may have done his/her research but doesn't like what they're seeing, so they throw the question out to the potential buyer, first, to confirm their research; two, checking (and hoping) that the potential buyer hasn't done their research and will base their offer on what property prices were a few months ago; three, seeing at what level to pitch their asking price/reserve. If a dill comes along and tells them they think the place is worth $650,000 when research has shown the agent it's worth $600,000, the agent knows he's found a victim.

From my experiences, an agent will never ask this question when the market is on the way up or high. In those cases, the agent will tell you they're expecting $600K when they're planning on setting the reserve much higher.