Greedy vendors could derail Sydney's real estate auction boom "Markets can't keep going up and up and up": Dr Andrew Wilson. Photo: Anita Jones Overambitious sellers could derail the auction boom if price expectations start to move ahead of the market, experts warn. Despite record high clearance rates agents are complaining of failed sales campaigns due to overconfident vendors. "Markets can't keep going up and up and up," said the senior economist at Australian Property Monitors, Dr Andrew Wilson. It always happens like this, one side eventually gets fed up and says 'no way'. At an auction for a three-bedroom 1930s house at 14 Francis Street, Mascot, this Saturday, underbidders were shocked to hear the vendor's bid of $1,125,000. It passed in on that figure. The price guide had been more than $1 million, but after the auction Babington agent David Carrozza said the vendors wanted "closer to $1.2 million." Underbidder Peter Dyer, 39, said: "The property is quite small for what it is ... it needed extensive renovations. I think over a million dollars in Mascot is ridiculous. Despite high clearance rates, buyers went cold on a few auctions last weekend. At an unrenovated three-bedroom bungalow in Russell Lea the gap between vender expectations and buyer reality became apparent. "All the evidence pointed to a figure of $1.1 million to $1.2 million," said Tom Penfold, a buyers agent who had his eye on the property for a client. But ... they felt because of the market temperature that their property was worth closer to $1.3 million. The property passed in and has since been taken off the market. "Buyers are getting frustrated," said Mr Penfold. We are starting to see properties that you would definitely think would sell, passing in. It was a similar story at the auction of a three-bedroom semi in Bondi. The selling agent had the property listed with a guide of $1 million-plus but the vendor wanted about $1.3 million. It passed in and is now for sale at $1,275,000. "We've gone from a fairly dormant market to a red hot market very quickly so if there was a temptation for vendors to get ahead of themselves it is probably right now," said McGrath chief executive John McGrath. It is not just vendors, some agents may be tempted right now to be slightly more optimistic in their expectations. He also said setting a reserve too high could be a costly mistake. Morton & Morton managing director Ewan Morton said some sellers were incorrect in their assumption that the whole market was booming. "People have to remember that there has been price increases in a certain bracket, I think that is up to about $1.5 million, possibly $2 million," he said. Above that confidence is back, people are purchasing but vendors just need to be careful that they don't apply the hype at that end of the market. If I was a vendor in the market today; do your deal and get out. Raine & Horne's Michael Harris said some sellers were getting ahead of themselves.