How to make an offer before auction – Buyers Agents Sydney | Good Deeds


(acoustic guitar music) – How to make an offer before auction. Most property buyers don’t like auctions. They worry about getting
caught up in a bidding war and will often do anything
to avoid the pressure. But is it always in your best interests to buy before auction? The answer is not always, so it’s important to understand how market conditions affect
things before you act. In a hot market, it’s really hard to buy a
property before auction. Agents prefer to avoid taking offers because they hate messy
negotiations with multiple buyers and also the possibility of being blamed by those who miss out. And on the other hand, in a slow market, it’s usually very easy to buy
a property before auction. And, in fact, some agents
will sell as many as 80 to 90% of their
listings before auction. Now of course, you have to wonder why. Well I’ll tell you why. When buyers are thin on the ground, there’s often only one serious
buyer for each property. Before the auction, you won’t know you’re
the only interested one, but the agent will. And a smart agent will
engineer an offer from you rather than let you get to auction and realise that you’re their best buyer. Now how do they do this? Be on the lookout for an
agent suggesting the vendor is seeing something
that they’d like to buy so they’re now motivated to take an offer before auction day. And another common clue
is when they suggest that other buyers have made offers, but they want extended settlements, which doesn’t suit the vendor. One of the benefits of
an auction for buyers is that they’re transparent, whereas if you make an offer beforehand and the agent says somebody
else is interested, you’ll have to take their word for it. If you call their bluff
and that buyer does exist, well there’s a risk they’ll
sell it to them and not to you. But if you keep it cool and hold your fire until the auction in a slow market, there’s a good chance
you won’t have to compete and even if you do, it’s
less likely to be frenetic. Now auctions are a whole lot less scary if you’re well-prepared, so I’ve created a free Ebook for you. The link is below in the notes. Now if you still want to
make an offer before auction, it’s important that you
get your timing right. Week one in an auction
campaign is usually too early. The owner won’t have had
enough exposure to the market to feel inclined to sell unless
your price is ridiculous. The last week of the campaign
is not a good time either, because there’s a greater
risk of competition. Any other buyers that are
interested in the property have also had the opportunity
to get ready to act. However if the agent is encouraging you to make an offer in the final week, that’s a clue that you
might be the only buyer or at least the strongest buyer. And in this case, you’d be better off to wait and go to auction. The optimum time if you’re going
to make a pre-auction offer is in the middle of the campaign. Usually the second week. The vendor’s more likely to feel that they’ve had enough
exposure to the market by then and it’s also before most other buyers get themselves ready to compete with you. You also need to know that all agents manage offers differently. To maximise your success, ask what process the agent will follow once you have made an offer. And don’t try and play games. Lastly, if you do make an offer, make sure you’re ready to sign
the contract unconditionally because you’ll need to buy
under auction conditions. (acoustic guitar music)

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