Certainly don't agree with this. Have been to countless property auctions and the hammer price is usually 5-10% below the market value. If 5-15% above market value, might as well buy from market and avoid all the uncertainty such as unit condition, outstanding utility bills and so on. Most of the people present are usually agents on behalf of interested buyers, thus, they are experienced and not impulsive bidders.

Just my 2 cents.