Auction or Private Sale

Thanks @The Y-man for the wisdom. finance and s32 all good. In suburbs where I am looking, competition mainly from overseas buyers who most likely are not affected by what’s happening here. So, when I spot a potential IP passed in and within my budget, I try to snatch it. I will keep remembering the strategy you share

 

Hi all, just an update.

The property is now back again in the market with price listed 100k more than the highest offer on auction.

Not sure, who will buy that property, but with most potential buyers are from overseas it may happen.

I guess putting the house on auction was the wrong move from the Vendor.

 

What suburb? Box Hill?

 

You always pay what the seller wants otherwise there wouldn't be a sale.
And you won't get your first purchase perfect.............

 

None of this matters. Dont waste your time with overpriced properties, unless its waiting for them to come to there senses.

 

Thank you @The Y-man It was below $1m mark.

Prior coming to auction, I've checked the RP, bank valuation, onthehouse etc, and the auction highest bid actually way beyond what was estimated.

I am just reflecting and learning from this event, let say if I was the highest bidder during the action and got the opportunity to negotiate with the Vendor, I may be able to secure the house at better price rather than negotiating down from $100k mark up they've set up now. Hence the reason I ask the question at the first place.

It seems I'll skip this property as no way I'll be paying 100k more from the highest auction bid. I've already communicated my best offer to the REA and the ball is on their court now. Probably they'll get an overseas buyer who did not know about the auction and have no concern about money & value.

Btw has anyone ever got a bargain buying at auction?

 

Yes

 

In a crappy market, where few bidders turn up, for a buyer who knows the value, with a seller under pressure.

Its the wrong question. You can overpay or underpay for an auction, private sell, or whatever. If your new you dont understand the things that create a bargain.

Someone has, but you probably wont.

 

One day when your a seller you will look at this differently. Make your offer and move on.