Heading to auction?
You’re not alone if price guides leave you confused. They’re one of the most misunderstood parts of the property buying process – and often, that’s by design.
Agents use price guides strategically. Their aim is to attract interest, generate competition, and encourage more bidders to show up. But if you know how to read between the lines, you’ll be better prepared to bid with confidence.
WHY PRICE GUIDES CAN BE MISLEADING
Agents are legally required to provide a price guide that reflects the seller’s expectations. But there’s still room for interpretation. Some guides are set low to create buzz, while others may shift as interest builds. It’s not unusual to see a guide quoted below what the seller will accept, especially early in a campaign.
FOLLOW THE MARKET, NOT JUST THE GUIDE
Instead of relying solely on what the guide says, look at recent sales of comparable properties. What have similar homes in the same area actually sold for? This gives you a realistic range and helps you avoid getting caught out on auction day.
WATCH THE CAMPAIGN TACTICS
How the agent runs the campaign can tell you a lot. If there’s strong early interest, the guide might increase closer to auction. If it stays low, the agent may be trying to draw a bigger crowd. Pay attention to how many contracts are issued and how many pest and building reports are being requested.
TALK TO THE AGENT – STRATEGICALLY
Ask direct questions like, “What would buy it today?” or “Where do you expect bidding to start?” While they may not give you a firm number, their response can help you gauge the seller’s mindset. Don’t reveal your own budget too early in the conversation.
SET YOUR LIMIT AND STICK TO IT
Emotion runs high at auctions. That’s why having a clear upper limit – based on research and your own financial comfort – is essential. If you know the true value of the property, you won’t be swayed by last-minute bidding drama.
CONSIDER USING A BUYER’S AGENT
If the thought of bidding at auction makes you uneasy, you’re not alone. Many of our clients feel the same way at first. An experienced buyer’s agent knows how to read the play, avoid bidding traps, and negotiate effectively both before and during the auction.
Nervous about auctions?
Our clients often secure the very first property we present. Let’s make your next move a confident one
Contact Katie Marsden at Earth Property Buyers Agents on +61 418 797 701 for a confidential conversation.
