Novel auction in NSW on the Cards

In an article for the website Your Investment Property, Miriam Bell talks about a novel auction that is about to be held on 14th February. The auction will be one of its kind as it will set a $1 reserve price. Neil Tyagi, owner of the Blacktown House in question feels that auctions could also be made interesting and it was only important to depart from textbooks.

Novel auction on the cards

The 576 square metres block is being considered both as a family home and an investment property. While bidding might start at $1, it is only expected to reach high levels, given the interest the property has generated.

Underquoting from sellers

People in the know feel that the move of keeping $1 reserve price might just be a ploy aimed at countering the underquoting strategy of selling agents. Legislation aimed at abolishing price guides has been introduced in Queensland but no such move has been adopted in the NSW so far.

You can read the original article here.

Step pricing

Underquoting is a malady and to it the demons of step pricing are added now. It is not a great place to be in for a large number of aspiring home hunters. There has been a case lately where the advertised price was $600,000 whereas the reserved price was set at $780,000.

Selling agents counter that step pricing is not a treacherous move. It is a technique to keep up to date with the dynamic market. Be that as it may, underquoting certainly appears to be one hell of a strategy to keep the doors open for the big players even while playing out the farce of auctions.

Can you share an experience when underquoting cost you your dream home aspirations?