Tips for Private Sale Before Auction

As a potential home buyer in Melbourne, I've spotted a unit of interest that is being advertised for private sale ($610-650k) with several open inspections before it goes to auction in early September. The agent told me today that I would have to make an offer on the higher end to have a chance at getting it before the auction.

In this scenario (that is, available by private sale with a future auction date), does anyone have any advice around making a successful offer? What sort of price would be feasible/likely for the seller to accept?

Comments

  • +1

    Assuming it is an auction, then do some homework and see what is a realistic price for the property - forget the advertised price range as they are always BS. All things being equal I would expect a sale price of closer to $680k than $650k.

    Tell the agent you are a serious buyer and ask what it would take to buy the property now. If he won't give an indication, and you really want the place offer them $660,000 - in writing. If that is knocked back, which is quite possible, tell the agent you want to know what will be accepted - don't get into a one person auction (yourself). If the agent is still not co-operative tell him/her you expect them to amend the advertised price range (on the basis they have a firm offer above the quoted range) otherwise you will report them to Consumer Affairs.

  • +1

    Offer $680k.

  • Tip: Your offer becomes the reserve at auction.

  • +2

    Do not offer anything. Wait for auction. If you win at the price you like GREAT. If not, there are thousands of apartments for sale at the moment in Melb.

    DO NOT fall in love with one.

    They are a dime a dozen and NOT worth fighting over.

  • +1

    Remember:

    If your offer is accepted less than three clear business days before the auction date, you do not get a cooling-off period (time to change your mind).

    https://www.consumer.vic.gov.au/housing/buying-and-selling-p…

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