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Property going to auction - pricing

Discussion in 'The Buying & Selling Process' started by mc123, 23rd Mar, 2016.

  1. mc123

    mc123 Active Member

    Joined:
    28th Jul, 2015
    Posts:
    29
    Location:
    Australia
    Hi All,
    My investment property is going up for auction soon.

    I haven't told my agent the reserve price I will sell at, but I will decide a week or two prior.

    Should I be showing all my cards to the agent by telling him what price I am chasing, how open should I be to him?

    I guess i'll have two price points, the absolute minimum and a price that i'll be happy with.

    I just want to make sure he doesn't play any games and lower my expectations.

    Cheers
     
  2. TFBoy

    TFBoy Well-Known Member

    Joined:
    9th Aug, 2015
    Posts:
    94
    Location:
    Sydney
    I will condition them to the upper end of your price range/reserve, motivate and get them to work harder!

    Last thing you want is they start to go easy becoz they know it will be sold.
     
  3. SmashedEconomy

    SmashedEconomy Active Member

    Joined:
    26th Feb, 2016
    Posts:
    42
    Location:
    Brisbane
    The two important prices, will be
    • the minimum (reserve) you tell the agent you will accept, and
    • the actual amount less than the reserve the agent will try to bring you down to as it schemes with bidders to make their low ball offers clinch a sale.
    So then state your reserve to be 5K, 10K, or even more above your true reserve. That way when the agent inevitably tries to lower your reserves, you have scope to appear conciliatory without losing more than you wish. Mind games? U betcha!
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,563
    Location:
    Sydney or NSW or Australia
    The agent is the one selling their skills to you at their presentation - they show you the comparable sales to establish the price in your mind.

    The agent fills in the sales agreement with the guide written on the contract.

    The agent should provide guidance during the auction campaign to firm up your reserve at the auction.

    You do not need to disclose the reserve to the agent, only the auctioneer - this may remain in a sealed envelope.