Hi. I've actually posted this in an entirely different forum, but have just stumbled across this one and will be interested to get your feedback here too.
Anyway, we're looking at a property which is up for auction, but "may be sold beforehand". When we've asked for a priceguide, the agent has told us "the feedback we've had from other interested parties is mid to high 6's". Our own research suggests it's worth more like just $600k. (based on extensive study of sold prices in the street and whole suburb) Now from all of the reading I've been doing here and on sites such as Jenman's, I understand that we should believe NOTHING that comes out of an agent's mouth. Also, that agents tend to UNDER quote to buyers, usually by 20%. If this is true, then this property would supposedly go for more than $700k! No matter how I look at this place, I can't see how it could fetch the kind of money the agent is talking about, let alone in the 7's.
We've talked about making an offer with the agent. He insists that there have been several offers made "in the 6's" that have been rejected, so it seems futile (assuming he's telling us the truth) to put an offer forward. He has also revealed that it is a "nasty" divorce that has forced them to sell. No way to know if this is true either and seems unprofessional to disclose such information. If our research is correct, it does not add up that they refuse to consider offers in the 6's, if they are indeed desperate.
Apart from my price research being way off the mark (entirely possible of course!), the only other thing I can think of is the agent has done the ol' quote 'em high to the vendor (to gain their business) and will maintain this charade, even to buyers, right through an unsuccessful auction, until they wear them down months later and force them to drop their price. The area we're talking about (NSW beachy) is an incredibly flat market at the moment. Many auctions being passed in and properties sitting stagnant on the market for a year at a hightly inflated price, until they drop gradually by about $100k and finally sell.
Has anyone seen this sort of thing before? Am I likely to be right about a dodgy campaign? Or is it some other ploy?
Anyway, we're looking at a property which is up for auction, but "may be sold beforehand". When we've asked for a priceguide, the agent has told us "the feedback we've had from other interested parties is mid to high 6's". Our own research suggests it's worth more like just $600k. (based on extensive study of sold prices in the street and whole suburb) Now from all of the reading I've been doing here and on sites such as Jenman's, I understand that we should believe NOTHING that comes out of an agent's mouth. Also, that agents tend to UNDER quote to buyers, usually by 20%. If this is true, then this property would supposedly go for more than $700k! No matter how I look at this place, I can't see how it could fetch the kind of money the agent is talking about, let alone in the 7's.
We've talked about making an offer with the agent. He insists that there have been several offers made "in the 6's" that have been rejected, so it seems futile (assuming he's telling us the truth) to put an offer forward. He has also revealed that it is a "nasty" divorce that has forced them to sell. No way to know if this is true either and seems unprofessional to disclose such information. If our research is correct, it does not add up that they refuse to consider offers in the 6's, if they are indeed desperate.
Apart from my price research being way off the mark (entirely possible of course!), the only other thing I can think of is the agent has done the ol' quote 'em high to the vendor (to gain their business) and will maintain this charade, even to buyers, right through an unsuccessful auction, until they wear them down months later and force them to drop their price. The area we're talking about (NSW beachy) is an incredibly flat market at the moment. Many auctions being passed in and properties sitting stagnant on the market for a year at a hightly inflated price, until they drop gradually by about $100k and finally sell.
Has anyone seen this sort of thing before? Am I likely to be right about a dodgy campaign? Or is it some other ploy?
