A financial adviser has called for property auctions to be more tightly regulated or banned because they “crucify” fire home buyers.
Rod Schubert, managing director of Rod Schubert Financial Advice (RSFA), said first home buyers often found themselves forking out $2000 for valuations and building reports before they could raise their hand in an auction room.
“It is jaw dropping what this entails in terms of the average estimated cost to the first home buyer, and goes something like this: $1,000 for a valuation, $500-$600 for a full building report, say $300-$400 for checking a LIM and title,” Schubert said.
“If they were heading to a few auctions, let’s say five, that wipes $10,000 off their hard-earned deposit.”
Someone selling a house has the right to choose whatever medium they think will get them the best price.
It is frustrating to spend money on a potential house and not get it, but this is not restricted to auctions. You go through this for tenders also.
Also in recent times it has become more common for vendors to make a LIM and building report available to all interested parties, as that increases the number of people willing to make an offer.