Underquoting – What does this mean to the average buyer?
Underquoting seems to be the talk of the town in the Sydney market at the moment.
What is “Underquoting”? Underquoting is when the amount paid at auction ends up being much higher than the initial advertised price.
The biggest issue buyers are facing at the moment is the unrealistic price guide in which the agents are listing online. Buyers are coming in with the expectations that they have a chance of securing the property so they are paying for Strata reports and getting Building and Pest inspections done.
Without the right guidance and support, this cost could amount to thousands if you are running reports on a number of properties. We as Buyers’ agents are able to provide realistic expectations of what the property and market is doing to give our clients an understanding of whether the property is within their budgets or not.
An auction I attended at Epping sold for $215,000 above the price guide of $620,000. This amount was an incredible amount above what the price guide had indicated online. There were over 100 groups and 80 registered bidders on the day so you can only image the cost to run the reports for that property.
Underquoting costs buyers time and heartache. Avoid the pitfalls by working with a trusted buyers’ agent – Felix Taing 0412 097 661 ([email protected])