Under quoting auction price

[Kirsti]

There's a house for auction near me advertised at "Bidding guide $295,000"
That really caught my eye because I would have pegged fair value at around $400k (a nearby one of similar size & age went for $435k at auction a few weeks ago, but this one backs onto a train line).

Is it normal for the agent to under quote by that much?

I wasn't planning on buying anything for a while but if it could go for under $400k I could be tempted to have a look

 

[Propertunity]

If it backs a railway line, depending on the suburb, it may sneak in under $400K. I think my record for seeing agent under quoting is an initial price guide of $1.1M which was increased to $1.3M during the campaign, that ended up selling at auction for $2.56M. So nothing seems unusual to me anymore.

 

[littletee]

If it backs a railway line, depending on the suburb, it may sneak in under $400K. I think my record for seeing agent under quoting is an initial price guide of $1.1M which was increased to $1.3M during the campaign, that ended up selling at auction for $2.56M. So nothing seems unusual to me anymore.

That's disgraceful, how is it not criminal?

 

[Jins13]

Would love to see some changes in the industry from under quoting. I personally do not attend any auctions due to it being a waste of time for me, but guess through the normal route its almost like an auction in itself.

 

[Scott No Mates]

Raise the issue with OFT now, take a snapshot of the webvert with the selling guidelines. You never know when the OFT inspectors will go to the auction.