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How auctions get lower prices
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5. BARGAIN HUNTERS
Investors, property dealers and bargain hunters all know that auctions are one of the best places to find cheap deals in real estate. It is well-known that deceased estates and mortgagee sales are often sold for a 'song' at auction. Auction agents try to justify this by saying, "Look at the banks and the Government departments. They use auctions."
But that's because they want to make sure the home is sold. The sale is more important than the price. The banks and the Government departments are not the "owners" in the way that consumers are owners. Many banks and Government departments do not realise they are under-selling homes at auction. Those who do, are now beginning to avoid auctions.
Property investors, developers and dealers often buy at auction. But they almost NEVER sell at auction. That's because auctions get lower prices.
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