VICDOC Winter 2022 - Magazine - Page 36
PA R T N E R C O N T E N T
Wakelin Property Advisory is an
independent buyer’s agent specialising
in acquiring residential property for
investors. www.wakelin.com.au
SUCCEEDING AT
POST-AUCTION
NEGOTIATIONS
—
M
elbourne’s clearance rates have been
tapering off this year, as the market
rebalances following the feverish buyer
demand of late 2021.
As such, we’re likely to see higher volumes of
properties passed in, meaning increasing numbers
of buyers will need to negotiate after auction.
Negotiating with a trained real estate
professional can be daunting, especially after
the draining experience of an auction.
However, if approached correctly, the postauction pass-in can put a buyer at a distinct
advantage relative to the seller, which
represents a significant shift in power
from the pre-auction situation.
The golden rule for post-auction negotiations
is to always hold the highest bid when a property
is passed in, giving you first right to negotiate
and making you privy to the vendor’s reserve.
If a property is passed in, the agent and
vendor are highly motivated to seal the deal
on auction day.
If you’ve secured the highest bid, you’ll be
warmly approached by the auctioneer and invited
to come into the property to negotiate — politely
refuse. Advise the agent that you will conduct your
side of the negotiations from outside the property.
Firstly, it is difficult to discuss the matter
privately with a companion when the agent and
vendor are close by.
Secondly, it is an old estate agent’s trick to
bring people inside and tell them that there are
other bidders circling outside, ready to pounce.
Too often this is simply a ruse to place you under
unreasonable pressure.
The next crucial element is to remember that,
as the highest bidder, you made the last offer,
REPORT JARROD MCCABE
DIRECTOR, WAKELIN
PROPERTY ADVISORY
so the onus is on the vendor to move off their
reserve in order to begin negotiations.
Don’t make any further offers. Wait for the
agent to provide you the reserve, and do not
feel you need to accept it.
In all likelihood what you are told will be higher
than the true reserve — the minimum the vendor
is willing to accept.
Ask the agent to justify the vendor’s reserve.
Does the agent have examples of comparable
properties that have sold around this price?
Also remind the agent that no one else who
attended the auction was willing to pay what you
offered, let alone the reserve.
Ideally, at some point, you’ll agree to a middle
ground. If so, happy days. Otherwise, you’ll have
to decide whether to accept their last offer or
walk away.
The threat of walking away may lead to a
change of heart from the vendor.
However, there are risks involved in not sealing
the deal there and then. It is possible that other
prospective buyers will emerge.
Be careful not to get greedy or bloody minded
in negotiations.
If you know in your heart that your negotiations
have resulted in the current offer being fair and
reasonable under current market conditions,
and it is within your budget — accept it.
Quibbling over the last few thousand dollars
or so is not worthwhile given how costly in time
and money it is to find and adequately screen
another property.
Finally, if you’re not a strong negotiator, give
serious consideration to bringing an experienced
negotiator with you.
FOR MORE INFO:
(03) 9859 9595
WAKELIN.COM.AU
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