If you’re buying property in the Sydney market, you could be excused for thinking that every property goes to auction and sells for a sky-high price.
But have you ever thought that the best move to secure your dream home could be making a great offer well before auction day?
It’s a hot market at the moment. Properties are going gangbusters and breaking records left right and centre. And if you don’t get in early, you can very well miss out.
Personally, I’m very reluctant to purchase property on the auction day. I hate losing. And that means I have to get in there and try and win the property beforehand.
The problem I see with most people is that when they try and secure properties prior to auction, they’re simply not aggressive enough with their offers.
Now, let me spell that out.
The auction campaign generally runs for about three to four weeks. And in the first couple of weeks, you might find that not too many people have their ducks in a row, and they’re not interested in making a bid at that time.
But by the time auction day comes around, everybody’s ready, they’ve all got their wallets out, and you can be guaranteed that the there’s one person in the room with a little bit more money than sense that’s willing to spend over what it’s worth.
That means that the longer you wait in the auction campaign, the more competition there is.
And that’s why I try and get in really early and try and secure something.
Then the problem I see with most people in this strategy is that they don’t bid aggressively enough.
They like to bid around where they see ‘value’, not necessarily what might be a competitive offer.
So how can you combat this?
Well, if you first see the property and you really like it, set out a very top limit that you’re willing to spend on auction day. That’s the limit that you will go to in your negotiation prior to the auction.
That means that you’ve got a little bit more fire power there that maybe some other people haven’t considered.
And if you can get in and get in early, then there’s less players at the table and you have more of a chance of winning through a quiet negotiation, before everybody else gets their ducks in a row.
Because you can be guaranteed that on auction day, everyone will be ready and they’ll be willing to throw a lot more money at it.
So if you’re out there looking for property today, make sure that you have the confidence to bid aggressively upfront and secure that property before it goes to auction.
Josh Masters is the Director of BuySide Buyers Agency and has been buying and investing in the Australian property market for 23 years. He can be contacted at firstname.lastname@example.org