I recently attended an auction of a 2 bedroom apartment that was being advertised for 360+, It was my first inspection and I was in no position to bid, there was little turnout and the auctioneer drew no bids other than his own vendors bid at 360. Immediately after the auction the auctioneer approached me because obviously nobody else was interested. I found myself in a position of uncertainty with how I should play my next move. I would like some other people advice and opinions on how I should have played my next move?The auction tells me that the market value isn’t 360+, so what should I do?I later put in an half hearted offer of 330, needless to say, it was refused and the property is relisted at 388 .Thanks
walk away, even you yourself mentioned it is your first inspection. In this current market, you should not be paying market rate.
disagree totally, after all what is market rate, it's a silly term really, I mean market rate is what someone is willing to pay. So, what are you willing to pay for it. Make the offer a little less than you would like to pay and then you have a little movement, if that doesn't work,and they don't accept your final offer than look elsewhere.Some people try to be a bit too clever and will still be making low offers, looking for the bargain long after prices rise.
360k is the lower end of the market and depending, of course, on where you are the lower end of the spectrum has not seen much of a drop and in fact some areas have increased over the last 18 months. My personal opinion is a property should only go to auction if a price can not be established and this is generally relating to the higher end. A two bedroom unit can be priced very easily as there a plenty of them around. The agent tells the vendor that an auction will get the price on a upward scale, and yet a buyer goes to an auction to get a bargain don't they? so how is that ever going to work unless it is a unique property, something a two bedroom unit is not. So don't be so sure the auction is telling you anything at all.
Check what the unit is worth by looking around and talking to agents, make a reasonable offer and see what happens. you never know.
thanks your your advice.. its been very helpful!
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