I attended an auction on behalf of my brother in law 7 weeks ago (he just settled last week).
There were two units for sale in the same block. One was upstairs and in a run down condition (tenanted). Other was downstairs and was just immaculate (owner occupied).
Brother in law and his wife liked the one downstairs, but thought the one upstairs might be cheaper due to its run down state.
Negotiated with the agent, got a price buy before auction price - felt it was too high, declined it.
Went to auction, there were a fair amount of people, didn't even get chance to bid for the upstairs one. Sold for $619k. (The buy it before auction price was less than this - i felt a bit upset by it).
Obviously brother in law and his wife were feeling rather down thinking they wouldn't be able to get into this market. I told them to go to the auction for the other place which was scheduled later in the afternoon. His wife refused and said "whats the point - its not like we can afford it".
I called him, he gave me the same story. I yelled at him and called up idiot and whole variety of colourful words for giving me the same sob story.
Anyway, made him go to the auction (his wife didnt attend - she went out with her friends). He won the property for $571k (this amount was less than what the buy before auction price for the upstairs unit).
The turn out at the afternoon auction was less than the morning one, guess most people got scared off by morning auction and had the same opinion as his wife.
Best part was probably that this was the unit they wanted more - and they got it for less! Instant equity!
