Auction clearance rates have improved substantially in many markets around Australia this year. The clearance rate is up by about 20% on last year and hit a peak of 81% last week in Sydney, according to Australian Property Monitors.
- Tell the agent you’re interested and ask if the vendor is willing to sell privately. If the agent gets a flood of offers after the first open and you haven’t made yourself known to them as a serious buyer, you might not get the chance to make an offer.
- Let the agent know you have pre-approved finance. This is a very important signal that you’re a serious buyer.
- Offer a price that is close to your walk-away figure. Vendors will only entertain the idea of selling prior if a premium price is put forward. As with all negotiations, the vendors will assume your first offer isn’t your best so leave some wiggle room.
- Do more than a verbal offer. The best way of showing you’re serious is by signing the contract and attaching a cheque for the deposit. Alternatively, put your offer in writing and mention you have your finance approved.
- Offering odd amounts is a great tactic especially after making a couple of lower offers. For example, rather than offering $460,000 or $465,000, offer $463,500. An odd amount suggests there’s some logic to your offer and it also implies that you’re at your financial limit.
Looking at purchasing a property? Speak to your local Discovery Finance Specialist today to arrange a preapproval.