Buy by negotiation, sell by auction
In a hot market, says David Whitburn, vice president of Auckland PIA, there's plenty of buyer demand for property and the auction process gives a lot of drive to lift prices.
"But competition is not so good for investors. Auctions are good for selling, not for buying."
He recently went to an auction attended by over 40 people with many registered bidders. "The home sold for around $60,000 above the CV and for $20,000 more than the registered valuation. That's not good from a buyer's perspective."
Another Auckland investor, Ian Rainey agrees. "There's increasing hype in the market at the moment. In auction situations, people tend to get very motivated and often pay more than they would otherwise. It's not a good environment in which to pick up a bargain."
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
