Close auction loss

Just lost an auction on the weekend. House was marketed at an estimated range of $620K to $680K. Property was declared on the market at about $700K, and after about the $750K mark it was only us and one other bidder. At the end we were going up in $1000 increments, however I didn't feel comfortable going higher when the price reached $810K.

I'm experiencing a bit of doubt and regret. This was going to be a PPOR and it ticked all our boxes. There is nothing else currently on the market that we are interested in. I've been constantly wondering whether we should have had a few more bids and maybe we would have won it. I was conscious about overpaying, as I had previously thought that it wasn't worth more than $800K, but I'm not so sure as there aren't many recent comparable sales in the area. We had spent money on a building and pest inspection already which was basically fine except for a few minor issues.

Anyone been in this situation before, hoping for some positive advice for the future!
 
Yep, I've definitely been in that situation before.

Being able to walk away from a deal is an excellent trait to possess in the property game so you should be very pleased with that. I missed out on properties that could have made me heaps and also one that would have bankrupted me.

There are always more properties.
 
You used your head instead if listening to your heart. You made a sensible decision instead of running with your emotion. Embrace that.

Another PPOR will be there for you, and you will get it at market price because you know your market.

A rare trait indeed.

pinkboy
 
Can't say I can empathise, but I proffer:

1. Know the market (values) as well as you can.
2. Pay for an independent valuation, or two to get a qualified, second and third opinion.
3. Determine your maximum spend based on the above.
4. Go to auction, emotionless (or send someone on your behalf).
5. Bid, but don't exceed your limit.

You did a sensible thing not exceeding your limit. There'll be another one soon enough.
 
...Just lost an auction on the weekend...This was going to be a PPOR and it ticked all our boxes...
Had a mate for the last 6 months, same thing every week, blaming everyone else for outbidding him in the same range, advising they paid too much. Finally he bought for $800K 2 weeks ago and the stories have ended.

...I was conscious about overpaying, as I had previously thought that it wasn't worth more than $800K...Anyone been in this situation before, hoping for some positive advice for the future!

Trust the numbers, trust your numbers. Market knowledge is key and if it's not worth it to you, then it's not worth it. If someone wants to pay x amount more...let them. Keep looking for what is suitable for your situation.
 
I might be able to empathise with you. My highest bid was rejected on Tuesday morning. Gutted. If I went any higher, the numbers wouldn't have added up and thats how you need to look at it. Being your PPOR makes it more difficult. In your case, you would've always felt as if you overpaid for the property and probably felt doubt and regret regardless. Trust your instinct and let the numbers speak for you.

For example, I had a friend who was outbid at an auction. A couple of weeks later the owner called her back as the bidder had trouble with getting finance approved. Her lower bid was eventually accepted.

From here, pick yourself up and move onto the next property. Thats how this works. There will always be an another property and there will always be an owner willing to take your money.
 
Take the price guide, add $100k, then be prepared to go 10% above that

Many people go by a rule of 'top of the range and add 10% (or 20% or whatever) but of course this is too simplistic and cannot be relied upon. These attitudes really only perpetuate the lies that some agents advertise. If an agent decided to advertise a realistic range, it could make it more difficult to sell, as many buyers will dismiss it because they assume the owner wants an extra 10-20%.

At least this property was on the market at about $700k, (so the range wasn't too far off) but that is probably an indication that the owner didn't know what it was worth.
 
Sorry, bit off topic.. but just wondering, does the guide price serve any purpose at all in Victoria?

For those familiar with their chosen market the price guide serves the purpose of needing to factor in at least another 10-15 % over and above the advertised guide.

I don't agree with it, however it is how the games are played in Melbourne.
 
Short answer, no. If you rely on price guides you are a fool.

The recent deceased estate across the road was listed (from memory) for $730-760K for about 3 weeks and in the last week before auction was changed to $750-770K and went for $900K !

I follow unit prices and some houses in Melbourne and simply the Buyer Enquiry Range is way off. Sometimes it maybe by design, however it may also be by a hot market.

It helps if you know your market, and often comparables don't make much of a difference.
 
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I have been to several auctions in the last few weeks and I believe in every case, the reserve price was greater than the top figure in the estimated price range. Doesn't give you much confidence in agent's ranges at all!
 
In my case it was very difficult to know the market as it's a very small area with not many comparable sales. I do wish I had bid higher as I could have afforded it but was just concerned about the rule of not breaking my predetermined limit. In hindsight if I'd got the property I wouldn't have cared in the long run about the $10K or $20K extra.
 
Short answer, no. If you rely on price guides you are a fool.

Indeed.

I went to an auction a few weeks ago in Marrickville, expecting the place to fetch around $650k. It had been marketed at $550k+.

First bid was $600k and almost the entire swarm of registered bidders (most of them young couples, I'm guessing first home buyers) sighed in shocked unison and dropped their heads (and bidding numbers).
 
I have been to several auctions in the last few weeks and I believe in every case, the reserve price was greater than the top figure in the estimated price range. Doesn't give you much confidence in agent's ranges at all!

it is an auction. The vendor sets the reserve not tge agent or auctioneer. The guide bears no relationship with the reserve - greed will increase the reserve, fear will reduce it.
 
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