I was recently asked by the daughter of a close friend, to look through pest and building reports on an inner western Sydney apartment, her and her Boyfriend were trying to buy, these were supplied by the vendor. She told me it was going to auction and the price guide was $700k After going through the reports and doing some research on the property and location, I called her to tell her it all looked good and some advice on repairs. I mentioned that I was surprised at the price, and I thought something closer to $1 million would be likely. She told me that they had a budget of $850k,and they couldn't go beyond that, and the agent had adjusted the guide to $800k
It went to auction and sold for $956,000
So much for underquoting being policed, 37% above the original advertised guide.
