While ‘playing it cool’ can be a clever way to get what you want at times, it can also backfire majorly if you push the boundaries too far. Case in point: Many House hunters in Melbourne have become increasingly cautious, concerned about changing mortgage lending requirements and a general cooling of the market.
We are now seeing fewer bidders at auction and many are deciding not to compete at all. Why is this? Well, some buyers think they can hang back with the hope of negotiating a good deal after a property passes in. As a buyers agent, I always encourage my clients to have the property pass in to them. Under this scenario, that gives them first right to negotiate at the vendors reserve. In my experience after a short interval the agent usually comes out and sticks a sold sign up on the For Sale board. If you don’t bid , you don’t get that first right to negotiate which is dangerous.While conditions have swung toward buyers, the market is now more balanced and whilst some properties are passing in they are usually sold shortly after.
The problem with waiting until a property has passed in after auction is that buyers will then have to compete against multiple others in a non-transparent private sale process. Ultimately, homebuyers will often end up paying more than if they had put their hands up at the auction. Or, worse yet, they’ll miss out on the property entirely. Read more over at News.com.au here.