Buying at auction - questions from agent / conducting yourself at inspections

Discussion in 'The Buying & Selling Process' started by filipe, 25th Feb, 2017.

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  1. filipe

    filipe Well-Known Member

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    Sydney
    I am curious re how everyone handles the various 'interrogation' that the agents do when you are a prospective buyer looking at properties up for auction.

    For me, I'm looking for a PPOR that I can also build a GF at the back. My budget is anywhere up to about $1.1m. However, some places I look at are worth about 800k. Some 1m. Some 1.2m.

    Often they ask what am I looking for so they can help me with other listings/future, and what my budget is. I have learnt to NOT tell them about development/granny flat plans, because they hear about this then they tell other people at the opens "you can build a granny flat here!".

    But how do I handle the budget question? Do I just give a wide range e.g. 800-1m, or say it 'depends'? I usually say 'up to about $1m but depends on the property'. However then if I am looking at a place worth ~900k, they could then note this budget and it could result in a vendor doing a higher reserve (long shot, but possible if they pass this info on?).

    I find generally they don't ring about other properties anyway, and are more just mining for information. Besides, if they have another listing I will see it myself anyway. Should I just be trying to be vague and not give them any real answers, or does it not really matter? I don't generally see them write any of this down, unless they do it straight after I leave.

    I am still learning on how to show I am interested, so I get kept in the loop re offers from others prior to auction, etc, but not express too much interest that I have shown them my cards, so to speak. Any tips appreciated!
     
  2. The Y-man

    The Y-man Moderator Staff Member

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    We usually give a yield figure we are chasing. Even if it is a PPOR, you can still ask for this. Tell them you are going to rent it out but MAY live there in the future (work situation now means you have to live elsewhere etc) - NEVER tell them it's a PPOR as they will know it will be heart over head)

    The Y-man
     
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  3. filipe

    filipe Well-Known Member

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    That's a good point Y-man, I did not think of this re saying it was a PPOR! From now on I will say it is an investment. Because I have a varying budget, it's very hard to place a real metric on what it is, I guess if they ask what my budget is I should just say I have no set budget, and am aiming for a yield of 3-6% or something like this? Enough to not be completely vague, but also to answer their question and fob them off in a way. Maybe even 2.5% yield, if I said 3%+ there is not a lot of properties left...in Sydney!
     
  4. The Y-man

    The Y-man Moderator Staff Member

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    Work off the yield for similar properties in the area.

    The Y-man
     
  5. kierank

    kierank Well-Known Member

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    Whenever I go to an OFI, I ALWAYS tell the REA that "I have just started looking, that I am currently in research phase and that is the first property I have seen".

    Then, my answers to all REA questions are like "I don't know", "I have decided", "I haven't determined", ... all seem plausible.
     
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  6. Perthguy

    Perthguy Well-Known Member

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    If I am asked about budget I always say 'no sure', I am currently working through my borrowing capacity with my broker.
     
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  7. lightbulbmoment

    lightbulbmoment Well-Known Member

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    I think anyone who is looking to spend 800k and upwards on a house is well aware of granny flat potential. Also the Real estate would also be well aware of this. We are currently looking to get our third Ip at the moment and our strategy is going to be to play like we are a struggling FHB who are currently renting. If we told them our actually situation we think the real estate agents who are a lot of the time are young fhb themselves wouldn't like it. Like tall poppy syndrome they wouldn't want to help us. But if we play the priced out FHB hopefully they will want to help us more and in the future.
     
  8. GoOnAndTell

    GoOnAndTell Well-Known Member

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    Melbourne
    i always play dumb and say just starting looking. If i have to discuss property things that indicate i am not a first home buyer i speak vaguely about owning some things in the country or other side of the city.

    We have been struggling first home buyers about 5 times now :) its not as fun as the tight arse 'big shot' investor who will walk away if he gets bored, but it gets results.
     

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