Again last weekend we saw many hotly contested auctions with some extremely high figures paid for properties across many price ranges in Melbourne. $200k above advertised price ranges in some cases.
We went to buy a property in Caulfield South for a client on Saturday where the Statement of Information (agents estimate of price) was $1.1 to 1.2 million. We advised our client that the price would be over $1.3 million. We were competing against 4 other bidders, a couple of whom pulled out when bidding was in the range $1.2 to $1.3 million. We were the underbidders when the property sold for $1,404,000 !!
For the last month or so, selling prices well over the figures suggested in The Statement of Information (SOI), have been achieved across Melbourne. Exciting for some. Hard work for buyers. Our suggestion to buyers is, DO NOT expect to buy in the SOI range. Think 5-10% more. This could save a lot of time and emotional stress.
The SOI is the selling agent’s estimate of selling price based on recent comparable sales. If the comparable’s are dated before early June they are not realistic in the current market.