Let’s learn how house auctions in Sydney work.
Back home when I used to hear the word auction, I used to think that someone is in deep financial distress and the thing will sell for a dirt cheap price.
This is seldom true in Sydney and particularly when a house is being auctioned.
Let’s try to understand how house auctions work in Sydney: –
- You go to open the home of a house and you come to know that it will be sold via auction.
- You get interested because the thought of getting it at a dirt cheap price (due to cultural differences) kicks in.
- If the median price of the suburb is 1.5M, you will be told that the homeowner is in distress and is in urgent need of funds.
- You will normally say that your budget is 1M or 1.2M and will be informed that it is good news because no one is interested in this home and there is not much interest you can certainly buy it at the 1M to 1.2M price range.
- You get super excited.
- You will ask for the contract and will spend money on getting it reviewed by the solicitor.
- You will be told that the house will be sold at a bargain price, there is no interest from buyers and the owner is in urgent need of funds as he bought interstate elsewhere and urgently need to settle so that they can move on.
- You get more excited and you will then spend money to get building and pest inspection done for the house.
- You and your family now dream of living in that house.
- You even tell your family back home how you are going to get a cheap bargain and how smart you are.
- Your kids will fall in love with the house.
- You will inspect the house multiple times at different times of the day.
- You are now fully convinced that you can easily buy it at auction, how intelligent you are and why people struggle to buy a house in Sydney.
- The day of the auction comes, you dress up for the occasion, and with million dreams you reach the auction venue.
- You are surprised to find out why there are so many people at the auction.
- The bidding starts, at least 10 families are fiercely bidding, people are fighting with each other, and everyone is outbidding each other.
- In the end, 2 families are left who are competing towards the end.
- The hammer falls and a new suburb record of 2M is achieved.
- You are not a successful bidder, and you start the above process next week all over again for a different property.
- Now you clearly understand why it is hard to buy a house in Sydney.
Disclaimer: Articles in this blog are just the author’s or authors’ personal opinions.
It may or may not be correct. Please do your own due diligence and seek professional advice according to your own personal circumstances. The author or authors cannot be held responsible/liable for any content in this blog.
