Insights

Due to a speculated fear of missing out, real estate agents are reporting buyers who are prepared to bid up to 1 million and beyond at auction the same day they see the property for the first time.

Among those to make such a purchase are the buyers of 11 Roma Street, Bentleigh. The buyer had only seen the property briefly before the auction. The underbidders had not visited the house at all before the auction but both parties fell in love with it immediately .

This phenomenon has been growing, according to Hodges’ Director Frank Ruffo. “We had three scenarios recently where the underbidder went to over $1 million on the property they had never seen,” Mr Ruffo said.

It comes as Melbourne auction numbers are expected to soon lift for spring. About 673 properties went under the hammer this weekend, but a Real Estate Institute of Victoria forecast is tipping 800 by the final weekend of August.

Read the full article here.