How To Prepare For Buying A Property At Auction

As a potential purchaser of real estate in NSW, your emotions are bound to rule logic and affect the negotiations for the property of your dreams.  Yes, it’s quite easy to get tangled in your thoughts and end up paying a lot more than you should.  Along with approaching the negotiation processes from a position of strength and knowledgeable detachment, it is well advised to have accurate knowledge about the value of property and the right due diligence reports in place.

Here, we give a fair idea of what pre-auction procedures you need to know to minimise how much you pay for your next property. Take a look at the best ways of securing a property before the auction and ways of using some proven negotiation tactics to remain ahead in the game.

Rules of Engagement

It is important to understand all the terms, conditions and the rules of engagement specified by the company.   As these will predominantly be in the vendor’s favour, you need to know more about the deposit, quoted price range and more. A thorough research of the neighbourhood and a comparative study of property values and their recent sales can help you establish a ‘walk away’ price. If the price on offer exceeds this, then you are better off getting on with your search and not dwelling on what could have come your way.

Top tips for Negotiating Pre-auction Purchase

* Knowledge about the price that you are ready to pay is one of the best weapons to make competitive offers against other potential purchaser. So, refrain from “flying blind” while trying to secure a property. Know the value of property in question and the market and do not be scared to put forth your best offer first.

* Though you would hate to be on the losing side at the end of your negotiation campaign, its far better to walk away rather than be over-committed to a residential/commercial property that has managed to blind you. So, learn to lose gracefully and you may find yourself emerging as the winner in your next round.

* Avoid a “Dutch auction” at all costs. This is a situation where two or more purchasers end up putting “blind bids”, before the property goes to auction. Dutch auctions push the cost of a property to unreasonable levels. Here, emotions always get the better of all participants.

Last but not the least, getting advice from an experienced property lawyer like Greg Eliades protects you from indulging in illogical and expensive errors and ensures the best results from your investments in property. By following their advice, you can also look forward to avoiding several pitfalls; before you sign on the contract.

All the best!

 

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