Its Not Always The Highest Bidder That Secures The Property
Cohen Handler buyer’s agent Clive Delmenico, explains how it is not necessarily the highest offer that wins you the property.
You may have seen recent media reports on the fact that a lot of buyers were taking the opportunity to buy property prior to the July 1 introduction of the First Home Super Saver Scheme (FHSSS) and stamp duty exemptions. As positive as these schemes are in assisting first home buyers to enter the market, in reality we may see a $20,000 jump in property to factor in the ‘free grant money’, so anyone buying before this time will be dodging a bullet.
This was the case for Clive’s client who was in a position to buy last week. An opportunity arose to buy a one bedroom unit that was a great fit for this particular client. Clive attended the first open with the client and they noticed at once that it was extremely busy, lots of of interest and there were a number of contracts requested on the day. This wasn’t surprising because the property was desirable for both investors and occupiers.
Getting the edge on higher bidders
Having a client who knew what they wanted and was prepared to move quickly was a great advantage. Clive immediately organised the due diligence to be done as soon as possible but also had a business day public holiday slowing them down.
The real estate agent informed Clive on Wednesday that they had until 2pm that Friday to put forward our best offer… This a ‘tough scenario’ indeed, many people offer too low and miss out or overpay to make sure no one else on that Friday would be intervening.
Having strata and building reports done asap, Clive was in a position to be ready for Friday, so now the big question was how much to offer. As an owner occupier, the client was keen to pick up the property, but no one likes to pay too much. Taking into account past sales, estimated rental yields and where the investors would sit we came up with a number.
By Friday, 2pm, the offer was submitted with bank cheque, signed contract and the ability to exchange on the day.
Success! The offer was accepted even though the agent informed Clive that they were not the highest bidder – although it was very close with only a couple of thousand dollars difference.
Why did Clive win? Because the offer was unconditional – that’s what got us over the line. We had done our due diligence and were prepared to make the deal on the day. Moving quickly and working together, the client and I managed a great deal. Most importantly the result was a very happy client.
If you would like the assistance of the Cohen Handler team of buyer’s agents to help you win the right property for you, get in touch with us today.