Help! What do I do tomorrow? RA told me property going to auction has an offer the owners have accep

Hi guys! Just wanting advice! I have a property I'm interested in advertised for 1.x auction guide. It was originally going to go to auction next Saturday. But the RA called me up to tell me someone's put an offer in of 1.x+50k and the owner has accepted that offer. RA says if I want the property I have to put in a higher offer tomorrow and sign the contract and give them a 66w (so no cooling down period). What are the chances the agent is just doing this to secure a preauction deal and there is no other buyer/offerer? I've asked to look at the property again tomorrow before putting in contract and I told him we may be willing to pay 1.x+60k. But now I wonder if there was no other offer and he just didn't think there was much interest of going to auction so trying to secure a better deal before auction... Help please ><.

 

Would you have bid more than that at auction?
If you think it's worth it, beat the offer. If you don't think it is, don't.

 

Do you want the property?
Are you willing to pay 1.x +60k?
Do you think you can get it cheaper at the auction?
Are you willing to lose the property?

 

I like the property, like it more then alot of the other properties I've seen recently. It's not perfect, but it's quite nice for the price range. Problem is last year another property exactly like this next to it sold for 1.x + 130k with a extra car spot but same bedrooms. I'm willing to lose it but I am also quite keen for it. OO first home buyer unfortunately T_T. I feel like there wouldn't have been too many people attending the auction to be honest. I am willing to pay 1.x + 60k but I can't help but wonder if there's no other actual offer there. Can I go back and offer 1.x +20k and force him to tell me if it's the highest current offer?

 

You can offer whatever you want, but even if yours is the highest offer the vendor doesnt have to take it. Either way you can take your chances at the auction.

by the way, you will never know if you got the lowest price. The vendor will never know whether the buyer offered their maximum. But over the long run it doesnt matter that much either.

 

You can offer 1.x + 20k, but do you think the agent might have said the same to other buyers and one of them might offer more? I recently experienced 3x pre-auction offers similar to your case, and I thought the offers were ridiculously high, but someone else rushed to beat those offers at the end.

The suggestions above are very sound. Only you know your budget, your limit for that property, how much you like it and the market conditions in the area. Just offer what you think it is worth. Good luck!!

 

This might go against the general thinking of this forum, but if its for yourself and you are going to live in it for 20-30 years, don't worry about getting the 'best price' or whether the other offer actually exists. Figure out what the value it is to you, and what price you are willing to lose it for, and just pay that.

 

I don't think that's against the general thinking at all!

 

^ This ...

 

What would your Maximum Bid be if you attended the Auction?

 

For ppor, this is a good approach.

 

Agree.

If it is what you want, put in your best offer. Consider putting in a time limit for acceptance, like 5pm the same day. This should show if the seller is genuine in price expectations.

Even if you lose, you have given it your best shot.

 

Thanks guys, ended up offering a bit more but then they came back with a bit even more.... did it once more and they came back even higher so just let it go. I don't know exactly how much a property is worth so I don't know if I can do this 'best offer' thing. I would prefer to get houses at the cheapest offer when possible XP

 

depends who the agent is. If reputable then no way it's fake as this will kill the trust with you (a genuine party)

Most likely scenario is there is an offer. A private auction has started between you and first offer and potential others

. A few points to consider and be ready for
1. Good PPOR type properties are always hot
2. Once you offer more agent will go back to others and fish out the highest unconditional offer (Have game plan ready as if it already is auction day because the auction has just been brought forward)

*Just read your post*, unlucky with someone just wanted it more than you

 

Properties selling prior to auction is par for the course in the current Sydney market.

 

Auction price guide is usually on the low end to attract you. If price guide is 1.x you can expect the reserve to be 1.x + 10%. Anything less the vendor would pass in anyways.