It's not a rant, but I can tell you that if I accepted the "advice" of an agent I would be $150k worse off in two months. Situation below.
A lot of people can give you statistical figures about the sudden rebound in the real estate market. Everyone has an eye for the market and how it is going and the difficulty first home buyers are having.
A can give you the simplest example possible. I will compare the sale of the same house sold last June and again up for auction yesterday (10 months apart roughly). Not a cent spent in the meantime, so it is comparing apples with apples.
The said property was in Eastgardens/Hillsdale area of NSW. The property was sold last year for $725,000. That was pretty much market value.
Yesterday the property received keen bidding which lifted it to $920,000. Way above neighbours expectations.
A huge increase of 26.8% in 10 months or 32.2%p.a. and a paper profit of $195,000 less stamp duty and legal fees and selling costs.
It is now for the most incredible thing at the end of bidding. The owner wasnt happy with the price and passed it in! I believe the reserve was set around $950,000! A 37.24%p.a increase.
Finally, the ludicrous nature of the example can be shown by my property in the street. I received a valuation from the agent for $775,000-$800,000 two months ago and the same agent knocked on the door and told me he could know miraculously get $950,000-$1,000,000 yesterday afternoon. Im not interested in going anywhere but if youre a seller it is a good time to test the Auction waters and pass it in with little cost, while panic stricken buyers are all around.
