At Auction and Private Treaty Arrangements
In areas where the property market has not peaked yet, you can still witness something like the traditional buyer’s market. But to compensate for it and manage the equilibrium there are many areas registering a seller’s market, too. The true investing craft lies in wading through such market conditions. These are places where you will be forced to raise your bid even before you know you did.
Selling agents will force you to quote high
There will be selling agents waiting to pounce on your investing vulnerabilities and how! Remember, we are talking about “dig you till the bones” kind of trained professionals. It is their job to get the highest quote out of you just as much as it is your job to bid close to your budget. So let us take a look at how the scenario may unfold.
‘At auction’ bidding
You can find yourself bidding at the auction. ‘At auction’ is quite different from a private treaty. My recommendation is that you get a property valuation conducted for yourself. This will give you a fine idea of what’s its worth. If possible, get yourself a comparable sales value to prefigure the rates at which similar properties have sold in the neighbourhood.
Private treaty with single buyer
If it is a private treaty you can be the only person bidding for it or you may have competitors gunning for the same property. Whichever be the case, don’t get your rope wrong. Check the comparables, research via some web based provider and only then sit on the negotiating table. Look for creases in the deal.
It will allow you a bargaining chip. For instance, if you see there is an easement on the property or that one of its renovations has not been approved by the local council, you can always use the information. So be well-researched, it is not a fountain pen you are buying!
Private treaty with multiple buyers
In a multiple-bidder scenario be prepared for being ambushed by the seller’s agent. It is his job to entice you towards the property and then tell you just how difficult it is to procure it at ‘your’ price. If the deal is good, there is no harm in raising the quote a wee bit but then the rule is the same- stick to your budget.
All this requires professional assistance. A seasoned buyer’s agent can take you through the intricacy of the job and make a decision for you based on prudence and not emotion. You can talk more about it through my website.