I am looking at upsizing our PPOR (in Brisbane) and there's a suitable candidate on the market that's due for auction in 3 weeks. I am doing some research on recent sales etc but I'd like to hear story about people's experiences and tips (of course there are plenty on the internet as well) about buying at (or pre-) auction.
A few random notes:
- I really have no emotional attachment to this house. Yes it suits our requirement but so does another 3-4 on the market. I am interested in paying fair value (although I'd be happy if it's a bargain as well), but with zero FOMO. I wonder if being a share trader has something to do with it
- The property doesn't really have a price guide. It is a newer (8 yrs old), larger and better conditioned home than most homes around the neighbourhood. I wouldn't say it is over capitalised (I am guessing the building cost was probably only 1.2-1.3x the land value), but many of the older houses (~25 yrs) sell below replacement costs anyway. This house will certainly be in the top 3% price-wise for this particular suburb. I don't particularly want to pay more than 30% above the median price for the area - but I wonder if this rule is helpful or not...
- I am not adverse to buying pre-auction. I have read about the pros and cons of doing such, and the seller's agent has advised that they will accept offer if such offer is unconditional before auction date. Any other considerations from those who's been through the process?
- The house is in a suburb that has a lower median price, but the location of the house is closer to an adjacent suburb with a much higher (~20% higher) median price. Obviously this works both ways as buyer will argue for a cheaper price while the seller will argue for a higher price on the same fact. Anyone with property experience knows how this kind of situation tend to work out?
Thanks in advance.