How Home Buyers Can Beat Property Underquoting
As the Sydney property market continues to heat up, many home buyers are turning to auctions in the hope of securing their dream home. One of the most significant tools buyers use to gauge their bidding strategy is the auction price guide. However, many are starting to question if these guides are accurate or if they’re deliberately underquoted. Let’s dig deep into the issue and try to uncover the truth about auction price guides in Sydney.
What is Auction Price Guide Underquoting?
To start, let’s define what we mean by underquoting. Underquoting occurs when a property is advertised for a lower price than the sellers and real estate agents expect it to sell for. This is misleading to home buyers who may believe they have a greater chance of securing the property at a lower price. Underquoting is illegal, and agents found guilty can be penalised.
What is the Purpose of Auction Price Guide Underquoting?
Many home buyers believe that underquoting is rampant in the Sydney property market. They believe that agents deliberately set auction price guides lower than they expect the property to sell for to attract more attention and create bidding wars between buyers. However, there’s evidence to suggest that this isn’t always the case.
How Does a Real Estate Sales Agent Set and Auction Price Guide?
Real estate agents have a legal obligation to set an auction price guide that gives buyers a fair and accurate estimate of what they can expect to pay for a property. This means considering recent sales of comparable properties in the same area, current market conditions, and the unique features of the property on offer. If they fail to do so and deliberately underquote, they can face hefty fines.
However, determining the exact value of a property isn’t always easy. Many factors come into play, such as the emotional attachment a buyer has to the property, the level of competition at the auction, and the state of the property market at the time. Because of this, auction price guides are often subjective estimates rather than concrete figures.
Auction Price Guides Aren’t The Holy Grail of Information for Home Buyers
It’s essential to note that auction price guides are just that – guides. They’re not guarantees or firm predictions of what a property will sell for. In many cases, properties sell for well above their estimated price range, leaving buyers shocked and disillusioned. This is a common occurrence in hot property markets, where demand outstrips supply, and buyers are willing to pay top dollar for their dream home.
So, are auction price guides underquoted in the Sydney property market? The answer is not clear-cut. While it’s true that underquoting does occur, it’s not totally widespread. Real estate agents must adhere to strict laws that prohibit them from misleading buyers. However, determining the exact value of a property is subjective, and auction price guides are estimates and not guarantees.
As a home buyer, it’s crucial to do your research, consider recent sales in the area, and understand current market conditions to make an informed bidding decision. Don’t rely solely on the auction price guide; it’s just one of many tools at your disposal. Whether you’re after a real estate buyers advocate that knows the ins and outs of property auctions, or you’re looking for an auction sniper that will win your dream home within your desired budget, give us a call on (02) 8916 6172 or email our team at firstname.lastname@example.org!