With property markets across Australia slowing and auction clearance rates dropping, vendors are getting nervous.
But what does this mean for buyers?
Well, it means that it’s now possible to buy good properties before they even make it to auction day — and the ball is in your court when it comes to negotiating on price, too.
There are several reasons why vendors may be open to selling before auction day.
Some of the most common ones are:
1. Nervous vendors
There’s nothing quite like the energy at an auction.
It’s tense, exciting, atmospheric — and some vendors just can’t handle it.
This is great news for you, if you’re looking to buy, because you can play into those nerves (nicely of course!) and send them an offer early on.
They might be relieved to avoid the stress of the auction process altogether — and you might have your hands on the house you wanted even sooner!
2. Sensitive sellers
Selling can be a stressful time for the vendor, and if they’re particularly sensitive — perhaps they’re quite elderly, or going through an emotional time — the thought of going to auction might create too much of an emotional rollercoaster for them.
Depending on their circumstances, they might need to sell fast and move swiftly, so receiving an offer before auction could actually save them a lot of time and stress.
Remember…you’re not taking advantage of the people, you’re taking advantage of the situation.
You’ll be assisting the vendor by relieving their stress.
3. Time is running out
If the seller has already bought a house elsewhere, they could be in a bit of a panic at the thought of being unable to sell their first property in time.
No one wants to be paying mortgages for two properties!
By giving them an offer to consider before auction day, you’re giving them the opportunity to eliminate the very real risk of the property being passed in at auction — while allowing them to move on with confidence to their new home.
4. There just isn’t much interest
No matter how hard real estate agents works to generate interest in a property, sometimes the buyers just aren’t biting.
So, if there isn’t much excitement or enthusiasm prior to auction, the agent may advise their client to consider any offers that come their way beforehand… which is where you can swoop in to save the day.
Of course you should take advantage of this situation — a nervous vendor and no or little competition puts you in the drivers seat.
You’ll be in a great negotiating position.
5. The agent is in a hurry to sell the property
You might find that the agent is very impatient to sell, ASAP.
This can happen if the property has been on the market and has been the agent’s listing for a while, or if they’re dealing with a particularly tricky seller (yes, it happens!).
Whatever the reason, a hurried agent could be a boon for you, as it means you have the upper hand when it comes to negotiating the best possible deal.
6. You have a premium offer on the table
While we sometimes wish it wasn’t the case, let’s be honest: money talks.
If you can slide through with a premium offer that no one in their right mind would say no to, then it could secure you the property in a hot second.
One thing to be wary of, is your money talking too much, and raising the bar so high that both the seller and their agent think other similar offers might be made at auction.
This is a risk of putting your best foot forward prior to auction – but it just might pay off.
The only way you’ll ever know whether you can snag a property before it goes to auction is by putting the offer out there.
The worst the vendor can do is say no, and if that’s the case, you can still roll along to the auction when it occurs and try your luck once more.
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