David Sanderman, founder and managing director of the property auction information business Essential Information Group, said he believed it was still possible to hunt out a bargain at auction.
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He said: “The definition of a bargain is a very subjective argument. For example, you see a property that has a guide price of £100,000, you are happy to go to £110,000; I have seen the property, but I don’t think it is worth more than £100,000 so at that price I pull out.
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“If you carry on bidding and you are the successful purchaser at £105,000 you have a bargain.”
He suggested that by such a definition people set themselves a limit, which if they don’t exceed, they’ve got a bargain price.
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Sanderman insisted that nobody was ‘forced to stick their hand in the air’, but admitted that people were naive, suggesting that some buyers thought it was a bargain simply because it was up for auction.
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“The perception of property always being cheaper because it is on a property auction site is wrong. You must only pay what you think it is worth, not what the market or some other fool thinks it is worth!”
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