Do you think this Strategy works

[Truly Exotic]

in the area Im staying in

all private sales are advertised $880k-$900k+
however all auctions are 'above $660k-$690k

I personally think its disgusting

 

[MTR]

in the area Im staying in

all private sales are advertised $880k-$900k+
however all auctions are 'above $660k-$690k

I personally think its disgusting

Seen the same, this is absolutely disgusting

 

[MTR]

I think you could advertise at 510-520k and negotiate from there. If you advertise at 485k you will get offers around 470k etc... and you will be too far away to negotiate (In my opinion)

Chomp

That is what many think but you are wrong, I have proven this in a bust/shocking market.. However the key is a gun/agressive agent, he works it up. Most fear this as they think as you do. A good agent wont bring offers below, I certainly would not entertain working with anyone whose not prepared to work hard for their commission

 

[knightm]

I will leave the misleading conduct debate to others.

But if you are prepared to commit via auction then it shouldn't be illegal.

That show hot property a few yrs back used an eBay style auction to drum up the interest.

Cant remember exact numbers but say the house was worth $350k, They published a super low $200k reserve in all their marketing to the public, confirming the property would sell at the highest bid over that amount. Big marketing campaign. Huge crowd, property sold over market in the end due to the sheer number of bottom feeders that turned up.

 

[knightm]

in the area Im staying in

all private sales are advertised $880k-$900k+
however all auctions are 'above $660k-$690k

I personally think its disgusting

Agreed unless the reserve is actually at the lower price. They have to be prepared to put their money where their mouth is.

 

[knightm]

Seen the same, this is absolutely disgusting

Isn't this what you are asking about though MTR?

 

[MTR]

Isn't this what you are asking about though MTR?

Nope, not the same whatsoever.
I am talking about a range and what I would be prepared to sell it for if I had to in a slow market. I certainly would not be prepared to sell for $100K less, this is what some agents are doing, which is pathetic.

Is common to use a range when selling in my State.

 

[knightm]

Nope, not the same whatsoever.
I am talking about a range and what I would be prepared to sell it for if I had to in a slow market. I certainly would not be prepared to sell for $100K less, this is what some agents are doing, which is pathetic.

Is common to use a range when selling in my State.

Ah ok I understand now.

I think baiting is very unfortunate but ultimately a waste of time. Agents have to deal with huge numbers of enquiries and end up with the same few serious buyers who pay market value for a house. I guess for some of them its about face or ego and also building a database of enquirers for their mailing list.

I have clients send me properties with baited ad prices and I tell them its going to sell for much higher and they have trouble believing me until its happened.

I prefer the reverse - poorly advertised over priced properties that go cold for months, and then when you speak to the agent they quietly tell you the owner is desperate and will take an offer much lower than asking.

 

[MTR]

I prefer the reverse - poorly advertised over priced properties that go cold for months, and then when you speak to the agent they quietly tell you the owner is desperate and will take an offer much lower than asking.

That's a very good strategy, those lazy out of area agents with big mouths I like

 

[cadence]

happens a lot in NSW me thinks

a similar situation when agent provides very low guide for auctions

unit down the road was up for auction, asked agent for guide and was verbally advised >$675k which we knew was way low

sold last week for $760k ...

must not be illegal in NSW? see it happen to often ...

 

[Big Will]

I think you could advertise at 510-520k and negotiate from there. If you advertise at 485k you will get offers around 470k etc... and you will be too far away to negotiate (In my opinion)

Chomp

What if the place was worth 700k? I am sure you would have someone offer 600k..

 

[Big Will]

Ah ok I understand now.

I think baiting is very unfortunate but ultimately a waste of time. Agents have to deal with huge numbers of enquiries and end up with the same few serious buyers who pay market value for a house. I guess for some of them its about face or ego and also building a database of enquirers for their mailing list.
I have clients send me properties with baited ad prices and I tell them its going to sell for much higher and they have trouble believing me until its happened.

I prefer the reverse - poorly advertised over priced properties that go cold for months, and then when you speak to the agent they quietly tell you the owner is desperate and will take an offer much lower than asking.

More so they might find another vendor or another buyer for another one of their listings. Also sounds good when an REA says I sold a house for 100k+ above advertised price than I sold for 5k above advertised price.