Another strong week in local sales as:
112 Curtis Road, Balmain ($1,960,000 in 22 days),
24/1 Grafton Street, Balmain ($2,300,000 in 11 days),
11/150 Wigram Road, Forest Lodge ($1,300,000 in 5 days),
48 Mackenzie Street, Leichhardt ($1,726,000 in 21 days), and
12/68 Cambridge Street, Stanmore all sold.
The Love Triangle
Auction campaigns are a meeting of buyers and sellers who have conflicting motivations, which are exacerbated by each side having been fed conflicting information.
The vendor puts their property to auction on the promise of a high price. The buyers are attracted to the auction by the low price guide. The agent knows they have work to do on auction day to bring it all together.
To make a sale, the agent will probably need to get their vendor down and the buyers up in price.
It’s a Love Triangle – three parties - buyer, seller, and agent - looking for happiness, with three different objectives.
The vendor wants a high price. The buyer wants to win the auction for the lowest possible price and the agent wants to make a sale. When the smoke clears, one of the parties in the Love Triangle will end up the ‘jilted lover’.
Buyers who are outbid by other genuine bidders are not really victims of the Love Triangle. They have simply been outbid. All is fair in love and war, right?!
If enough strong bidders enter the Love Triangle and push the sale price over the advertised price guide, the agent can attribute it to market forces. ‘The result exceeded all expectations, how good are we?’ the agent will exclaim.
Then the agent will describe their delight to a property journalist at the sale price exceeding the vendor’s reserve price by $300,000. The only ‘news’ component of this is, it is usually ‘news to the vendor’ that they achieved $300,000 above their reserve price.
In these unprecedented buying conditions, stay alert and ensure you don't become another victim of the love triangle.