Robust auction strategy secures this property for our client
We recently purchased this property in West Auckland for our client at auction. This 1960’s weatherboard home is a classic example of the type of property that has proven over time to provide great capital growth for our clients – full site, great street appeal, elevated city views and north/ east facing – we knew it had sound investment potential.
After researching comparative recent sales we assessed the property’s value and agreed a maximum spend level with our client prior to the auction of $645K.
On auction day the bidding stalled after 5 minutes. There had been a few interested parties, but only one other serious competitor. When bidding stopped we held the top bid at $590K, however this did not meet the reserve price set by the vendors. They had hopes for something in the mid 600’s!
The vendors were also reluctant for the property to be passed in, having already bought and moved elsewhere and sent the auctioneer across the floor to get us to their desired mid $600’s. After some drawn out negotiations we secured the property for our client at $615K – $20k below where we believed market value to be.
On auction day it is important to read the room, and remain confident in your understanding of a properties worth. Otherwise emotion will take over and you may end up paying a premium. In this instance we could have easily spent more to quickly ensure a successful purchase, but as the buyer’s agent our job was to secure the property at the best price possible on the day.