If the mere thought of an auction gives you heart palpitations, buying a property through private treaty is the logical way to avoid the stressful bidding war.
But what happens when you make an offer on a property, only to discover you’re not the only interested party?!
You’ve entered guerrilla territory, but never fear — it is still possible to come out on top when negotiating a sale, when there are multiple offers on the table…
1. Make sure your finances are in order
You want to be sure you’re putting forward the strongest possible play.
This is why finance pre-approval is essential when going head-to-head with other hopeful buyers.
It could give you the upper hand on your competitors, who may be unable to commit to a faster settlement or higher price, and it gives you the confidence to outbid them.
Getting the green light from your lender is something you’ve probably already done, but if not, get onto it ASAP.
2. Offer a larger deposit
A larger deposit is often seen by sellers as a more secure guarantee that the purchase will go ahead, and this peace of mind could lead them to accept your offer over that of a fellow buyer who has less cash on hand.
If you have some spare cash you could use to beef up your deposit, it’s worth a try.
3. It’s not just about the price…
Don’t simply focus on the price.
Sometimes, the ability to compromise on other conditions of the sale might just sway the seller in your direction.
When the contract is subject to building or pest inspections or finance clauses, the seller still runs the risk that the contract will fall through.
If you’re in a position to delete these clauses (i.e. your finance is watertight) then this could be the right play.
Meanwhile, flexibility on settlement times can give sellers the quick sale or breathing room they might require.
Lay your cards on the table and explain that you’re willing to bend a little in these areas if it helps move your offer forward.
4. Raid your unique arsenal
Every estate agent can tell you a story about a time they’ve sold a property, not to the highest bidder with the best offer, but to the people the sellers liked the best.
Whether it’s your super-cute kids who struck a chord with the old couple who miss their interstate grandchildren, or the fact that you and the seller both barrack for the same footy team, don’t underestimate the power of emotion when it comes to getting the seller onside.
Selling a family home is an emotional experience, and some vendors feel really strongly about the kind of people they’d like to live in their old home.
Knowing you’ll love, cherish and look after it just as they have could be the clincher that seals the deal.
5. Don’t get carried away
Remember, it’s not an auction — you don’t need to work yourself up into such a frenzy that you outbid your nearest rival by $50,000 and totally blow your budget.
The advantage of negotiating a private sale is that you have a little more time to think, breathe and reassess as you go, without an intimidating man with a big hammer demanding an immediate response from you!
If things get too heated and you’re maxing out your funds and stress levels, it’s OK to walk away — remember, there will always be another property.
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