In Part 1 of our Top Inside Tips on Buying Property, we provided you with some great ideas for finding the right property. In Part 2 of the series, we will teach you how to secure the property for the best possible price.
Top Tip # 1
Placing Offers with the Agent
It is important to be aware of the different pricing strategies used by real estate agents. Some of them include:
•Offers over/offers from – If you add approx 8%-10% to the advertised price, you will have a good idea of what the owner is looking for. The idea behind using this strategy is to get those buyers who take the price guide literally to start making offers. Once an agent has an offer regardless of what that offer is, it can be used to leverage other buyers to make higher offers.
•Private Treaty – In most parts of Sydney, this method is rarely used these days. Private Treaty traditionally means an asking price is set then you are encouraged to make offers below that. As a rule you should start no more than 10% below the ask price to be considered a genuine buyer (provided the ask price is realistic!)
•Expressions of Interest – This strategy is usually reserved for higher priced properties, however it is also very popular in some boom areas of Sydney like the western suburbs. This is where you are required to make your best & final offer on a contract with no cooling off period and within a specified time frame.
•Auction – If making an offer prior to auction, it is a good idea to attach a time limit with the offer on a contract.
Top Tip #2:
Buying At Auction
There are many different bidding strategies you can adopt when buying at auction. A couple of these are:
1. The Fast & The Furious:
* Open the bidding strong and fast (knock out half the competition)
* Respond quickly to other bids (impression of deep pockets)
* Bid in increments of $10,000 to start
* Reduce bids to $5,000 or $2,000 as needed.
2. Last Minute Nellie
* Sit back and watch
* Jump in when bidding slows (gives perception of a bigger budget)
* Bid strong and respond quickly to other bids
* May buy the property with only 2 bids
REMEMBER:
Don’t be afraid of the Auction process – it could work in your favour.
Be prepared. Ensure you have a Pest & Building report, Strata report, the Contract for Sale has been reviewed, have up to date finance & pre-approval.
On the day – write down your limit & stick to it. Make it a random number not a round number.
Take along your ID so you can register to bid.
Stay calm.
Top Tip # 3
Use a Buyer’s Agent
If you still find the buying process too time consuming and stressful, consider delegating the
searching, evaluating and/or negotiating process to qualified buyer’s agent such as Innovative
Property Advocates.
Why use us?
•We provide access to a wider network of properties.
•We help you make an informed decision.
•We source and identify the right investment for you.
•We can give you the upper hand during negotiations or auction bidding.
•We save you money, time and stress.
•We add valuable credibility to your buying process.
Innovative Property Advocates offers the following services:
1. Full service – Search & Secure (unlimited properties over a 6 month period)
2. Secure Only – when you’ve found the property and need help securing it.
3. Bidding at Auction – bidding on your behalf on Auction day.
For more information, visit us at www.innovativeproperty.com.au or email info@innovativeproperty.com.au.
Kathryn Fantov
