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Post Auction Negotiations

Discussion in 'The Buying & Selling Process' started by Art Vandelay, 8th Sep, 2015.

  1. Art Vandelay

    Art Vandelay Well-Known Member

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    My partner and I are interested in a property in North Brisbane that is going to Auction this Saturday. It is a little sooner than we were planning on buying, but our DD has checked out and it looks like it would be a good fit for us at this point in time.
    Unfortunately, our broker is overseas on holidays at the moment so we're unable to arrange finance/pre-approval prior to the auction. This will be our first IP and we only settled on our PPOR a couple of months ago, so we don't want to stick our necks out too far with regard to finance before sitting down and going through everything with our broker when he's back in just over a week.

    If the property is passed in this weekend, we would like to negotiate and make an offer. Does anyone have any tips on getting infront of the agent and discussing post auction? We plan to be there on the day, but should we discuss with the agent prior to auction?

    To date the agent has been quite slack - not advertising open for inspections until the morning of, very brief responses to questions etc. The vendor is from overseas, but not sure as to reason for selling at this stage.

    Any tips would be much appreciated.
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    If the property is passed in then you can be 3rd in line to negotiate with the vendor. First is the highest bidder. If they can't get a sale there then the second highest and so on down to you.

    After that it just goes back on the market and you can be a regular purchaser like anyone else at a private treaty sale.

    Because you're not ready, you are not a particularly attractive prospect to the selling agent at this stage of the campaign.
     
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  3. Leo2413

    Leo2413 Well-Known Member Premium Member

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    I wouldn't tell the agent before the auction, but if its passed in regardless if you think your first in line, just head straight to the agent and let him know that your interested to negotiate. They don't care who is first or last, they will listen to all offers.

    Interesting situation. Doesn't happen often but lets say that your the highest bidder at 750k and they are still going to pass it in because they want more. If you know your real price you are happy to pay is 780k, let them pass it in and don't increase it. Then negotiate after the auction. By doing this you have put yourself in a superior position to negotiate. That's just what I would do in that particular circumstance.
     
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  4. shorty

    shorty Well-Known Member

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    Keep in mind that, at least in Victoria, if you buy a property on the day of auction, even if it's private sale, it's still subject to auction conditions. No finance clause, the sale is unconditional.
     
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  5. Dan L

    Dan L Member

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    Get another broker perhaps?
     
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  6. Art Vandelay

    Art Vandelay Well-Known Member

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    Thanks shorty - any idea where to find that information for QLD?

    Very happy with our broker to date. Had arranged to organise pre-approval once he was back from holidays as we didn't have any intention of buying again so soon. Don't want to push it all through with someone else now and rush into buying at auction for the first time. Would feel more comfortable taking our chances that it gets passed - if it does then that's great, if not there's always another.
     
  7. Azazel

    Azazel Well-Known Member

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    Yep, you don't have to marry them, I'm sure they'll understand if you cheat on them ;)
     
  8. shorty

    shorty Well-Known Member

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  9. Bran

    Bran Well-Known Member

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    This happens a lot in Brisbane.
     
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  10. TMNT

    TMNT Well-Known Member

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    Yes that is correcr. Must admit its a sneaky clause or law.

    If the vendor is happy to accept non aucrion conditions i guess you could post date the contract by two days but sign at the actual post auction negotiations
     
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