Saving $140k at Auction—Is That Even Possible?
Saving $140k at Auction—Is That Even Possible?
As 2024 comes to a close, our Buyer’s Agent team at Genie Homes achieved a truly remarkable result!
Last weekend, I had the privilege of representing a client at an auction for their dream home. Like any buyer’s journey, it involved weeks of property inspections, research, and strategizing. One property, in particular, caught their attention: a beautiful home in Algester.
This property sat on a generous 800m² block, featuring 4 bedrooms, 2 bathrooms, and space for 6 cars, including a double garage. After conducting a thorough building and pest inspection, we confirmed that the home was in excellent condition—making it a fantastic opportunity.
But here’s where the story gets interesting—it was an auction by mortgage.
The Auction Advantage
Many people shy away from auctions, believing they’re risky or overpriced. While that can sometimes be true, entering an auction armed with the right knowledge and strategy can completely change the game. This was no ordinary auction; it was a mortgagee sale, where the creditor (the bank) takes control of the sale process.
Here’s the key: in a mortgagee auction, the bank’s primary goal is not to sell at the highest price but simply to ensure the property is sold quickly and efficiently. Unlike a typical seller who might hold out for a higher price, the bank prioritizes a swift transaction over record-breaking profits. The selling agent, too, is incentivized to move the property quickly by setting a competitive reserve price.
The Winning Strategy
With the client’s trust and support, I crafted a bidding strategy that balanced precision and patience. I also understood the psychological dynamics at play—there was always the possibility of an emotional bidder driving up the price. But luck was on our side, and the auction played out exactly as I anticipated.
We placed the final bid, securing the property for $140k below market value at the time—a staggering outcome for my client and a moment of immense pride for our team.
Why Use a Buyer’s Agent?
This success story highlights the importance of partnering with an experienced Buyer’s Agent who knows the rules of the auction game and can navigate complex scenarios like mortgagee sales. At Genie Homes, we specialize in giving our clients a competitive edge, whether at auction or private sale.
Would you like to learn more about how a Buyer’s Agent can help you secure your dream property at the best price? Contact our team today.
