At an Auction today, a bid was made by the sole bidder at 1.6 million. This was swiftly followed by a Vendor Bid at 1.9 million. Needless to say, the property did not sell.
This Auction is a classic example of when the seller and buyers are not on the same page. The seller is clearly overly ambitious in terms of the price to be achieved.
In addition, throughout the marketing campaign, the selling agent has been extremely vague when asked about the price guide. In fact, the agent often downright refuses to answer the question on price.
This means that buyers are mentally and financially unable to prepare themselves for Auction day. If the selling agent had been more open with an accurate (and realistic!) price guide throughout the marketing campaign, the Auction may have attracted buyers with the right budget.
Consequently, the lesson to be learnt is that: an unrealistic seller + incompetent agent = no sale.
About Oliver Stier
Oliver J. Stier is the Director of OH Property Group, a leading Sydney buyers agency. He studied Quantitative Economics and Finance at Cambridge University (UK), University of Toronto (Canada) and Princeton University (USA). In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation.