Strategies BA use to beat competition?

In hot markets, got to have an edge. ....

Cash offers, but what else??

Of course you may not want to share

 

Leveraging agent relationships is a big one, specifically useful at the negotiation phase to get the inside running on who the other buyers are and where the offers are at.

 

They dont.
They just pay market value majority of the time.

 

So agent not working for seller in this instance?

 

@MTR as you'd know, not all competition is worthy of beating ..... and as BAs our aim is to buy within our clients budget, not overpay and be able to demonstrate value. I'd also like to point out that using a BA is as much about identifying the dud properties to clients, as it is about shortlisting the gems (unlike a selling agent, we're certainly not focusing only on the positives!)

As @fols has pointed out, solid relationships with selling agents help (they know we bring non-BS committed buyers, are familiar with the process and make their life easier for most deals) as is field and local experience, effective time management (and knowing how to use timeframes to our clients advantage) flexibility in terms/offers/solutions as well as good old fashioned practice. You do the same thing over and over again, you're bound to improve Knowledge is key in this game, and so finding out and solving vendors problems (and believe it or not, it's not always solely price-driven) also assists in good outcomes for our buyers.

Along with good ole' fashioned work an effective BA is working the phones daily, chasing up every morsel or lead of a new listing, privately canvassing for sellers both via agents and via their own means, sharing intel with colleagues, finding out information that's relevant to a sale, scouring contracts and reports etc. Acting for buyers is hard yakka, and it's not so much about having "an edge" as it is about just getting on with it and doing all the usual DD as part of our job.

Also, as a market increases (as this one currently is here in Sydney) time really is money and so missing out continually can cost dearly, as prices continue to climb, yet buyers heads are still stuck in the 2020 clouds of hope. As BAs we provide current realistic reviews on price, so our buyers are educated and confident with us in the process.

Enough raving from me...

 

Anyone heard of this, I have.... with multiple offers

BA will include clause in contract

‘ $1000 above highest offer’

Is this legal???

 

Written letters submitted via the agents directly to sellers, with adaptable various offers.
Need to learn some more negotiating skills, its about knowing what sellers want and making it win/win situation. Doesn't always work but it did for friends of mine.

 

BA: Well Mr Jones, you've just bought this lovely place for $2,501,000.

Mr Jones: whaaaaaaattt?!?!? My limit was 2.3m...!!

 

Can comment on whether it is legal or not.

IMHO, it is very risky, verging on stupid.

What buyer would sign an offer/contract with no control over their purchase price?

 

Or, even worse:

BA: Well Mr Jones, you've just bought this lovely place for $2,501,000.

Mr Jones: whaaaaaaattt?!?!? My limit was $300,000...!!

 

Buyer probably delusional in that instance, budget of 300k looking at multi million dollar properties

 

Nah, buyer looking at a $300k property and REA enticed Joe and Jill Blogs to submit a $2.5M offer, all knowing it would be the second highest .

As I posted:

 

Holy Hell

 

But is it legal??

 

Lets move on..... back to the topic......

Strategies that BAs use to beat the competition?

 

We are on topic.... do BA use the strategy to shoot competition as I mentioned? and is it legal

I am pretty sure it has been used....

 

I am pretty sure no BA and/or no buyer would be that dumb ....

 

Not sure? Could be buyer doing this.

 

Then it ain’t a BA strategy?

Off topic?

 

Imho in current markets, the best a BA can do for a buyer is short list the the properties they are looking for and help buyers to act quick and decisively by getting in as fast as possible. Its possible BAs have good networks and relationships which may alert a BA to certain properties they are looking at, or the BA may be able to get an off market listing and take it to their client ASAP to get a decent deal. But from how i see it, the value of a good BA (especially in current markets) is to help the buyer try and lock down a property they are looking for asap, at least at a fair price. If they can somehow find a seller who is motivated for whatever reason to sell off market and the price is somewhat of a bargain based on recent comparable sales, then that would be a-mazing. But I wouldn't be banking on that scenario.

Lets not forget, and I know heeeeaps of people who fall into this category. Often, buyers are very:

1. Time poor. (time is definitely money in current markets)
2. Very emotional.
3. Don't have the skills/confidence to short list properties at a competitive speed relative to other Gazumpers.
4. Posses limited/no negotiation skills. So if a good deal does happen to come along, they either wont recognize it fast enough and or wont have the skills to snatch it up asap.

A good BA can greatly help in all those areas.