As house prices and sales have fallen for months in a row, desperate Australian brokers are secretly using "low prices" to attract buyers to boost auction attendance
But buyers have to pay attention, this could be a "fall in"!
, real estate brokers secretly cut their offer by 10% to 16% in the final days prior to the auction to boost interest among potential buyers, the Australian Financial Review reported.
Melbourne-based Prestige, for example, which sells a property online for A $2.5 million to A $2.75 million, is now selling to potential buyers for A $2.3 million to A $2.5 million, a difference of about 16 percent.
Cate Bakos, the buyer`s agent, said: "if sales are not good, the agency may lower the guiding price to lure potential buyers."
It is said to be a "hidden rule" for many agencies, using low prices to attract potential buyers to auctions, encouraging bids and hoping to raise prices.
There were about 930 auctions over the weekend, but more than 2000 in the same period last year. As the number of auctions continues to decline, such an approach has been secretly promoted between intermediaries.
So in such an environment, agents are trying to stimulate the market with pre-auction deals, and sellers are likely to adapt to the market, including lowering reserve prices to ensure a deal.
Recently, Sydney-based intermediary Rhonda Yim sold a three-bedroom stand-alone house in Lewisham, in the inner west of Sydney, for A $one million two hundred and ninety one thousand nine hundred and ninety nine, just below the A $1.3 million reserve price.
She believes her real estate has been properly marketed and attracted several potential buyers.
"some people have made some money from real estate, especially investors, and they think it`s the right time to do it," Yim said. "there`s no sign of panic."
