The client managed to secure the property for $25,000 less than the budget set aside for the auction. The schedule of the auction was two days later.
So, how did the buyers agent managed it?
The following are the top tips on how to secure a property before auction day.
1. Know the Property’s Value
Get a fair and reasonable knowledge of the property’s value so that you will be sure of yourself when negotiating with the agent. You have to evaluate the property in detail in order to accomplish that.
Each property varies. When looking at properties, look at whether the property suits your needs and budget. Note: the property is not worth pursuing if you don't have the budget.
2. Know the Motivations of the Seller
There may be multiple motivations as to why a seller has decided to sell before auction. However, the common motivation is due to wanting a shorter campaign which is marked by the auction itself.
From the perspective of the seller, they eliminate the stress and anxiety of going through the actual auction as well as potentially get paid for the house much quicker.
3. Learn of the Agent’s Plan
After you have found out the property’s value and the vendor’s motivation for selling, the next step is to learn what the agent’s plans are for the property. Try to work as closely with the agent as possible. Find out all there is to know about the property and build a relationship with them.
4. Prepare for the Negotiations
Don’t forget that you potentially place the seller at a disadvantage if you abandon the sale, as there’s one less person who wants the property. Be prepared to negotiate fairly and reasonably. And, don’t forget that there is likely to be more competition come auction day.
5. Realise that Timing is Critical
For the Edwardian property, the buyer's agent had four days’ notice before the day of the auction to work his magic. He secured the property early and eliminated his clients competition.
But bottom line, timing is just as critical as the actual offer.