Competing with a neighbour's sale

Generally, what is the outcome when two properties of comparable value and attractiveness go for sale at the same time?

We had wanted to liquidate a property, one week from listing on the market, we hear rumours (later confirmed) that the neighbour next door was just about to list his property.

The agents are saying to beat them to the market and that the lagging party always loses.

I'm not so convinced though since it seems like buyers now have a choice.

Does anyone have experience in similar?

 

I don’t know whether it is generally true but the lagging party doesn’t always lose. I just bought a flat for $380k that has been on the market for six months. Two weeks later, the identical flat immediately downstairs sold for $400k. I think the sale of the first created a sense of urgency for the second. Another flat that I looked at while I was on the market sold for $353k, four months after one of its neighbours sold for $320k. It depends on the market.

 

In traditional real estate, i always found when you listed and promoted a home, it was a call to action to other home owners in the street to list as well ,plus you can capitalise on other agents marketing.

 

If it is a bog standard lot, there's nothing to lose - they play off each other (it will probably be the same gene pool of buyers looking at each property).

If two lots would lead to development opportunities, then it can play to your advantage to list at the same time (and possibly with the same agent).

 

my block is 820m2 and his is 855m2. probably very large for the inner west suburb we are in.

a developer could certainly buy bother and build a row of town houses or something but at the price we are both asking, it's probably not financially viable.

 

800+sqm does sound big in the inner west..

Its usually preferable that the better property is sold first, so that it sets a benchmark for the second one. So if yours is the smaller block, all things being equal I think a week or two after is good as potential buyers will see yours during the first one's campaign.

 

Depends upon what you mean by inner-West (800m² in Glebe or Camperdown could be 6 or 7 homes vs Strathfield = nothing special).

 

Wishful thinking that it might be Annandale or Enmore?

 

It is BS lagards definetly don't always lose. I would consider getting a new agent. Don't know about Sydney, but what I have seen the laggards get better prices and more spirited biding. Bidders wont bid to the absolute max if they know they have another option. Less supply and FOMO is a powerful force. If some-ones wants both and acquires the first one they may pay more for the 2nd one as it may even increase the value of the first one, it is how aggregators work, bid up property to increase values on one, if they have 5 properties it increases the value of the other 5, then they can more easily buy more.