
On Saturday I went to bid at an auction on behalf of a client. About 5 minutes prior to the start of the auction – a lady started handing out leaflets to every person in the crowd.
The leaflet (which is attached) read like this:
‘How much is ………. really worth? It is up to the Market to decide, BUT when the real estate agents are feeding us misinformation, how can we tell?
Not only is (the property) being falsely advertised as a three bedroom home (with a study), ………… (The Agent) gave us a select comparative report of select three bedroom homes sold, all between $720 – $770k.
But, in 2010 there have been 21 homes sold with a comparable land size in Coburg. The average price for all three bedroom’s sold was $705,800. The average price for two bedroom homes during the same period was $616,330.
A home in Strathearn Ave, Coburg 2 Bed, 1 Car, 1 Bath (497sqm) sold for $711,000 in early 2010. Another house in Maranoa Cres (643sqm) 2 Beds, 1 Bath sold for $625,000 in Feb 2010. Both of these homes are just around the corner.
Potential bidders, you and I make up the market. Here is some information that you may not have been told, use it wisely’
Following this was a standard pest inspection report and pre purchase inspection report with a manicured selection of text that they wanted other bidders to read.
My gut feel suggested a certain bidder (leaning on the fence) on Saturday was the person responsible and that they had hired ‘outside help’ to pass around the flyers.
To be honest, I think it’s pretty disappointing from the buyers angle. This doesn’t (and didn’t) stop people from bidding. In fact, if the house was such a dud then they wouldn’t have been bidding. I felt it gave other bidders confidence by the desperation of this flyer.
Many neighbours were incredibly disappointed when they were handed this flyer also. This is almost like having a shot at them – not a good way to introduce yourself to the neighbourhood if you’re the successful buyer.
Fact is these tactics often misfire. You’ll find that vendors won’t want to sell to you or will be unfair in any negotiations if they have a ‘gut feel’ on who it might be, agents will be avoiding you, and your new neighbours will be very cranky indeed.