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The Answer is Simple – Paying Too Much

The answer is ‘Paying Too Much’. With lack of knowledge and inexperience buyers are heavily exposed to overpaying for a property they are bidding to buy at auction. Nine times out of ten they are being ‘encouraged’ let’s say, what to bid before and during the auction, and even after if it did not sell.

The ultimate goal of an agent is to get an auction property sold under auction conditions as the buyer is then locked into the purchase with an unconditional contract. Even though a buyer may have a pre-conceived idea or limit of what they want to pay, if they do not have the market knowledge to base that on, they could be (let’s say again) ‘encouraged’ to pay what the agent is telling them to pay to win the auction at all costs.

FOMO – Fear of Missing Out

This number one fear can all be traced back to a buyers underlying anxiety that they will miss out and be back searching the web next week. It takes a professional many years of experience to understand the property market and even then they must keep regularly up to date with market sentiment and market movements. For an average person looking to buy their first or maybe second property ever, it takes many hundreds of inspections to understand property types. This includes the variances with both house and land types as well as how these relate to and impact on the overall value.

When the above is compounded with what a buyer is being told by a real estate agent about the property and the market it can be overwhelming, very confusing and lead to the buyer not buying at all. When a market is moving quickly and prices are being driven by demand, there is a high propensity to make mistakes and paying 5% more on a million dollar property is substantial.

Contact us so we can assist you in developing the best plan and achieving optimum property outcomes – (07) 3368 1604.