You find a property listed at $700,000 to $750,000, stretch your budget to make it work, do your due diligence and turn up to auction ready to bid. Then it sells for $850,000. So what happened? And can you actually trust the price guide?
In this episode, Veronica and Meighan unpack the complicated world of property underquoting, why lower price guides attract more buyers, and the psychological effect those numbers can have on your expectations. They also explore why underquoting continues despite being illegal, how different states approach price guides, and the role of agents, owners and buyers in the process.
Most importantly, they explain what buyers can do about it. Rather than relying on an advertised guide, you need to understand what the property is actually worth, what you’re prepared to pay and how the auction method of sale works.
If you’re buying at auction, this episode will help you understand the game you’re stepping into, ask better questions and prepare properly before you ever raise your hand to bid.
Episode Highlights
01:37 – Underquoting: How the Property Pricing Game Works
04:14 – The Psychology Behind Low Price Guides
09:55 – Forget the Guide: Learn to Price the Property Yourself
17:19 – Buying at Auction? Learn the Rules Before You Bid
20:12 – How Price Guide Loopholes Can Be Used
23:08 – Don’t Trust the Guide: Work Out Your Own Price
25:45 – Preparation: The One Thing No Law Can Do for You
Course Details:
- THE First Home Buyer Course is our Step-By-Step, No BS Guide to Every Stage of The Home Buying Process – It’s the next best thing to having your own buyer’s agent. With our expert guidance, you’ll know what to do at every step along the way. Become a home owner faster and easier. Click here: https://homebuyeracademy.com.au/YFHBG
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