How to buy a home by making a winning bid
When buying land, it is one of the hardest challenges to figure out how to make the winning bid on a home, whether by private treaty or pre-auction.
How can you figure out that a bid is enough to keep your home safe? Are there any well-tried tactics to position you at the front of the line that you should adopt? And, most obviously, maybe, how do you escape the risk of paying to much?
It is important to ask the agent a few main questions.
They could be stuff like, 'What is the highest bid the sellers have declined to date? 'And' What would buy the property?' You may be shocked by how many agents are going to tell you those responses honestly, but the trick is to read into the sales pitch to figure out the facts.
It's also nice to have a second property alternative up your sleeve and casually drop it into the discussion instead of as a challenge.
Obviously, the size of a bid is key and the reward will still be won by a massive amount of money, but making sure you don't spend well over the odds is crucial.
It is about finding the sweet spot between pricing and pacing and what the seller is trying to accomplish.
It is important to do all the necessary analysis in terms of comparative recent offers for the same location and type of house, changing the price according to how your target fits up, and checking at existing listings in order to figure out how much the bid could be.
At the moment, certain assets are under-quoted with agents seeking to bring the price down to lure individuals.
Buyers will have to come to terms with the fact that it is impossible that making a pre-auction bid at the same position where much of the interest lies would win the bargain for you.
This is not going to be enticing at all for the seller.
If you want to buy anything in advance, it needs to go above most rates, maybe paying a premium to secure it.
Be ready to behave
In order to prove your willingness to pay the deposit and complete the deal, it is also important to have your funds set up and ready to go.
There are no terms that sound sweeter to a seller than, 'I'm a cash-buyer.
They might produce a deposit cheque, but most commonly it's done on money transfer these days, so they can bring a copy of their bank account to prove that they have the funds. And if you've already completed your inspection of pests and buildings with a home, or strata inspection of an apartment, saying you should sign a contract that day will place you ahead of 90% of your rivals.
Professionalism and versatility
In advance, you should already have a good understanding of the terms of settlement and what you are willing to sell a seller.
From maybe six to 10 weeks, sometimes manufacturers prefer longer and more flexible settlements, but if you suggest you'll give them the flexibility, that might also make your bid more appealing.
Often, engage with and handle the agent with respect.
So many people fear them, so it's like a breath of fresh air when you're friendly and professional, and they'll endear you to the agent. Such flexibility areas can include giving the seller access to the deposit and waiving any cooling-off time, but before making these compromises, it is best to obtain expert advice.
Present the case
Another strategy preferred by the seller is to ask the customer to write a letter detailing why they have made their bid.
They should list the other properties they have reviewed, the price points at which they have sold, how this property could differ, and explain the offer they make. Buyers frequently see many more homes than brokers and would tell that, having reviewed so many, instead of $1.5 million, they are now paying $1.4 million for this one.
It lets the customer care about the challenges, and it confirms to the seller that their bid is real.
Some people even want to share how enthusiastic they are about the possibility of moving there, and how much they love the house, but I still recommend that they keep it straight.
If they put out a good deal, the early bird catches the worm.. Set up a deadline
Finally, according to one negotiator, aim to gain hold of the negotiating process.
Put a time limit on your bid, claim, ‘We can only wait until 12pm tomorrow' for a response if they do not agree, as you want to bid on the second house. This positions the seller 's focus and drives their 'fear of losing'.
The fact that in a much earlier discussion you raised the second property gives it more weight now.
Note this article is not a financial or legal advice. Please check with your financial and legal qualified advisors before taking any decisions on your own.
For further information about real estate in this area, contact No Bull Real Estate, your most reliable and friendly real estate agents in Newcastle & Lake Macquarie. Buying, selling, leasing for residential, commercial, industrial property, contact your local expert to buy, sell or lease today on 49552624 or https://www.nobullrealestate.com.au