Deceased Estates are always thought to be sold at a “song” and always tend to attract a horde of buyers looking for a bargain. The reserve price is always low however we have found that they never turn out to be a “steal” (certainly in the last few years of buying) at deceased estate auctions. I think the fact that buyers have spent money on building and pest inspections and are also emotionally involved with the property they make a psychological decision to buy the home come auction day.
Combined with the fact that when there are so many people bidding there is the illusion that it must be a sought after property. Unfortunately we have seen buyers pay way more than what the deceased estates are worth.
It’s easier to fool yourself on a value of a home when you keep bidding over what you initially thought it was worth because other people have bid higher you end up justifying to yourself that it must be worth it.
Too bad the sellers of these homes aren’t alive to enjoy the proceeds of their sales.
By Robert Skeen