Passed in at auction – playing the game

Passed in at auction – playing the game

Posted on Friday, April 13 2012 at 1:28 PM

With data showing the number of auction listings has increased significantly in recent peak periods, one expert is warning buyers to keep a cool head.

Real Estate Buyers’ Agents Association of
Australia (REBAA) president Warwick Brookes said buyers who were the highest
bidders for a property passed in at auction should know how to “play the game”.

“Just because a property has been passed in
does not mean that this is market price – it’s simply a price point for further
negotiation,” Brookes said.

His tips for negotiation at auction are:

outside the property

Unless it’s pouring rain, don’t follow the
agent inside. Position yourself outside where you can assess your competition.

the reserve

Most times, the reserve is not the price at
which the vendor will ultimately sign a contract. What’s the lowest price the
vendor will sell for?

on your strategy

Do your research and estimate what the
property is worth under low competition and at the upper end, where there’s
intense competition.

and minimise the outcome

The extent of any negotiations will depend
on how much the property is passed in for. Don’t be frightened to drive a hard
bargain. If there are no other buyers in sight and everybody has left, reassess
how much you’re willing to counter-offer.

a poker face

It’s a fact that 90 per cent of all
communication is conveyed through eye contact and body language. Keep a poker
face – it can save you thousands.

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