We had 3 auctions last weekend all in different areas, from Fairfield to Keilor Downs to Elsternwick.
While we didn’t secure all of them, we did however secure 2 of them.
Each auction we attend, and every negotiation is always different in some way and you need to be prepared for that.
Know your strategy when buying a property at auction around Melbourne. Know what you plan to do in advance but also be prepared to be flexible. You might need to speed the bidding up or slow it down. You might need to increase your bids in larger amounts or smaller ones.
The key though is to be flexible in your approach and also know your limit.
And if you want to know more about how we do this then click here to read our Google Reviews.
Yes you might go slightly above what you want to pay, but paying $100,000-$200,000 above what a property is worth is ludicrous and can be very costly to you, Particularly if the valuation ends up coming in less than what you paid for the property.
So how did we go on the weekend?
The first auction in Fairfield went quicker than expected. There was a crowd of around 20 and a vendor bid opened the bidding, then our bid and then only one other. We did jump the bidding and maybe this put some people off and the auction was over within 10 minutes and the property was ours for another very lovely client (single woman with one child).
Next, we headed to Keilor Downs and the crowd here was strong with at least 50 people attending. For this auction everyone had to register and hold bidding paddles. This is something you usually only see in Sydney and not Melbourne. In any case, we opened with a strong bid comfortably above the quoted price and the bidding took off from there.
All up there were 4 bidders and the bidding just kept on going well above our expectations and unfortunately for our client, they missed out on what they thought would be their dream home.
Needless to say, we are on the lookout again for them and hopefully will find them something very soon and before these wonderful clients (couple) have their first child.
After this, we were on our way to Elsternwick to a very spacious family home in a nice quiet court location. The crowd was mainly filled with neighbours, and we were surprised that there wasn’t more interest in the home.
We opened the bidding very strongly above the quote and waited for the other 2 bidders we had identified to start bidding.
Nothing happened so the agent went inside and discussed with the vendor and when he came out, he declared the property was on the market. They had reached their reserve and were ready to sell.
We were holding the bid and holding our breath for at least one other bidder to come into the mix, but no-one did.
So, with just one strong bid the property was ours and another fabulous client (couple with one child and one on the way) had bought a really good home with much bigger rooms than in most homes we see around here.
Knowing your prices also helps
While we may have bid strongly and higher bids than the quote for all 3 auctions, we also know our prices. We don’t just bid up to any old limit.
We do an enormous amount of research into the location, the property and the prices for recently sold properties and you should to.
Never assume that the price the agent is giving you is where it will end up. Do you own investigation into where you think the property sits in price and what you think it will go for. And of course know your limit.
And if you are not sure what to do, where to start or what price to pay, then contact us to learn more about how we can save you money and time.
Until next time, be safe, be happy and love where you live!
Warm regards,
Melinda
