Multi Bid Negotiations

Thursday, 12 March 2015 11:00

Multi Bid Negotiations

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In this strong market, getting a bargain sometimes loses precedence to getting the deal. Many negotiations turn into an auction very quickly after the first bid is made. Some things can be done to assist clients in these situations, but often it comes down to which bidder has the deeper pockets. Once someone has invested a lot of time and a bit of money doing due diligence, missing out on signing the contract can often feel like being stood up at the wedding. Here are a few things that can assist you getting over the line ahead of the competition: Do the pest and building inspection and look over the contract before making an offer. Once you are sure this is the one, have as few conditions as possible: not subject to finance or a delayed settlement, etc. Have the deposit ready and transfer it as early as possible. Once you have an offer accepted, push to exchange as quickly to beat out opposing bids. The deal is not done till contracts are exchanged. A local solicitor/conveyancer is preferable as rural legislation differs from the city and local networks count to push things through. Sometimes I'm asked by clients if an agent is using a phantom bidder just to push the price up. I have been involved in many multi bid negotiations and I am sure it rarely occurs. An experienced agent is never going to risk their licence with such a maneouvre. However, if you have doubts or just want to be reassured, you can ask the agent to send you the written offer with any names or contact details blacked out. Unfortunately, multi bids happen a lot and its mainly due to tribe psychology. No one wants something untill someone else wants it. A property can be on the market for a while with no bids then someone jumps in and its all on. Knowing when to get in early, make an offer and get out is tricky but experience and market knowledge is helpful. Another reason for multi bids is this is the way most agents play a successful sale these days. It used to be the accepted strategy to list higher than the market rate and hope a buyer will jump as close as possible to the listed price. These days, agents encourage a vendor to list lower than what they will accept for two reasons. They want to manufacture a mult bidding situation. Also the internet is such an important factor. Listing high means you are missing out on many potential buyers who are searching in the lower bracket. Byron Property Search is available to anyone wanting assistance in the negotiation process. Often, just knowing how the process works is invaluable. Yes, it is just a matter of who offers the most money, but all the subtleties of human interaction and personal dynamics come into play during a negotiation. Most buyers are in the buying property mode every seven years at the most - the time of the average property churn. Sometimes it helps to talk to someone who does it all the time. Maybe the amount you spend on someone to consukt with is going to save you in the long run.

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Myocum Byron Bay 2481

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