Hi ,

You have finally found the most perfect property. You have fallen in love with the house, land and lifestyle that you could have – you have even visualised where your furniture will be placed. But now you are faced in a bidding war against equally motivated buyers wanting to purchase YOUR dream property! 

This is yet another challenging scenario that a Buyers Advocate is equipped to deal with. Remember that sometimes we need to remove our emotions and be realistic about the pricing and not overpaying for a property, despite other buyers' interest.  

A Buyers Advocate can negotiate through the common four methods of sale, whilst ensuring that they are meeting their client's best interest. When purchasing a property through these various methods of sale, each have their own pro's and con's and discussing these options with your Advocate before jumping into a sale is essential.

Private Sale
This selling method gives both the buyer and vendor the most flexibility to negotiate price and purchase conditions. Prospective buyers make offers on the property while it is on the market. Private sale means you have the option of attempting to negotiate the price and/or other selling conditions with the owner’s real estate agent. 

Auction  
A common form of sale in Victoria, giving you a chance to secure a property for a good price. However, this is dependent on low the interest/competition is from other bidders. 

Most vendors will have set a reserve price – the lowest price that they are willing to accept for the property. If no bids are made at or over this reserve price, the property may be passed in– giving the highest bidder a chance to negotiate with the vendor in private. In this event, you may have an opportunity to negotiate a sale with the owner (via the Real Estate Agent) and this may fall into a private sale method, if conducted outside of the auction. 

Expression of Interest (EOI)
This is a formal process for when a buyer is wanting to place an offer on a property with the view to purchase. The offer is presented in writing via a specific document EOI (expression of interest or tender document) which is then passed through the agent and presented to the vendor for review and consideration. 

Remember that your Buyers Advocate works in these scenarios daily. It is highly likely that they have built a rapport with the listing agent and/or Auctioneer over their career. Whilst no “special deals” can be made, it is certainly appealing that the relationship between these parties can ensure that communication, commitment and deliverance on a successful outcome can be achieved.