“Ridiculous proportions” of properties selling before auction: BradfieldCleary

In the Sydney and Melbourne markets, a large amount of stock is selling prior to auction, according to Bradfield Clearly principal, Bob Guth.

Buyers feeling panicked about missing out in the market are making offers prior to auction, however Guth suggested that with two premium offers, it’s worth waiting until auction day.

“Properties selling prior auction is reaching ridiculous proportions due to a lack of stock in the market, especially in the inner-suburban areas of Sydney and Melbourne. There is an extremely high demand for properties closer to the CBD and social hubs, so naturally there is a lower supply,” he said.

“Agents are working very closely with potential buyers over the course of a property campaign, with buyers potentially coming on as a premium purchaser. Their interest becomes above the market, where they see a property being worth $900,000 for example, a valuer may assess its value as only $800,000.”

He noted that the true power is with the vendor, who may be tempted to sell prior to auction to ensure the sale occurs.

“Vendors are still encouraged to let the property go to auction if they have two or more interested parties at premium levels. This can drive the price up, potentially selling well above the market price.”

What would you do in this situation, sell or wait until the auction?