Readers ask: What Is An Auction Guide Price?

What does auction price guide mean?

A price guide is exactly what it says it is, an estimation of price, based on recent sales of comparable properties. A practise known as ‘underquoting’ has been known to occur within the industry where real estate agents deliberately quote lower than the estimated property price in a bid to gain more interest.

Do auctions start at the guide price?

Each auction property is offered at a guide price and is also subject to a reserve price. The guide price is the level where the bidding will commence. Both the guide price and the reserve price can be subject to change up to and including the day of auction.

Can I offer less than the guide price?

It is certainly possible to offer lower than the guide price. For example, if similar properties in the area take too long to be purchased, or if they are selling below the guide price, the buyer will automatically deduce that the offer can sensibly be lower than the price the vendor is selling it for.

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What does price Guide mean?

Underquoting is about misleading sales practices by agents. The NSW legislation defines the reasonable estimate as: “the price or price range specified in the agency agreement for the sale of the property as the agent’s estimate of the likely selling price of the property”.

Do bidders see the reserve price?

A reserve price is the lowest price you’re willing to sell an item for. Bidders can’t see the reserve price, but they’ll see whether it has been met.

Is having an auction worth it?

If you don’t have enough merchandise to meet the auction house minimum, you’re better off selling the more valuable items individually on eBay or Facebook Marketplace instead of lumping them into an estate sale. It may be worth a lot to you, but its market value is minimal, and it’s not going to lift itself.

What is above auction price guide?

This is a figure at which the property can be sold and will be set within 10% of the guide price. This figure can be subject to change, but will never be more than 10% above or below the guide price.

Can you back out of an auction bid?

In many cases — yes. Buyers who have placed a bid can retract their bid any time before the auctioneer announces the sale has been completed. If the buyer does not complete the transaction, they may be liable for any damages to the seller if the item is resold for a lower value.

Is it better to auction or sell a house?

An auction gives property owners the best chance to sell their real estate quickly. That’s far more efficient than selling real estate by listing it with a real estate agent and waiting patiently for the best offers to come in.

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Can you offer 10 below asking price?

However, if you find out from the estate agent the sellers motivation is finding the highest offer, you may have to submit a less cheeky offer, only 5-10% below asking price, which the estate agent should advise the seller to consider, as this is actually the true value of the house.

Should you offer under asking price?

When should my offer be below the asking price? You may be able to buy the property for less than the asking price for a number of reasons. If you feel as though the property is worth less than what the seller is asking, go in lower, but be fair. Offering half isn’t likely to go down well!

Should I offer over the asking price?

But when should you offer over the asking price on a house? You should only offer over the asking price if you’ve done your research and consider the house to be worth the offer over and you can afford to buy it at that price. You shouldn’t offer over asking price if there are no other offers already on the table.

Is domain estimator accurate?

Domain is the most accurate by far according to our research. Will be interesting to see what the agent says in a couple of weeks time. All values stated with high confidence. I’d say they are reasonably accurate given all three were within $10k either way of the actual purchase price.

What is a bidding guide?

In New South Wales, agents have three options for quoting an auction price guide: Quote the exact price that they put on the agency agreement. So for instance, if they put $700,000 to $750,000 on the agreement, that’s what they’ll quote. Now I can tell you, you don’t come across many agents who do that.

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What do you do on auction day?

Pre-Auction Tips: 9 Things To Do BEFORE Auction Day

  • Check Your Financial Capacity.
  • Vet the Sale Contract.
  • Make Sure You Have a Professional Building Report.
  • Check More Than Just The House Condition.
  • Register to Bid with Proper ID.
  • Visit Auctions.
  • Have a Bidding Limit and Stick To It!

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