We often get asked what the best purchase and negotiation strategies are for both private sale and auction campaigns. There is no clear cut answer unfortunately; it is all dependent on a combination of factors; the type of property, its location, the Vendors circumstances and the target market.
For a Private Sale, as a potential buyer you must: have your finance pre-approved, know exactly what the property is worth (market value) and know what the Vendors situation is as early on in the marketing campaign as possible. Once you have inspected the property you are then in the box seat to get started on negotiations.
Negotiating with agents is tough and frustrating at times (well – all the time really!). Knowing your numbers and being confident in your offer and terms increases your chance of securing the property of your dreams at a realistic price. The alternative if you haven’t done your homework or engaged a professional to do it for you, are missing out altogether or, over paying.
In this month’s case study we’ll be sharing with you the details of stunning property we secured in the outer South East of Melbourne. Our client had an arrangement that their family/friend would be living in the property so there was quite an extensive wish list in regards to the property itself and what was required. We had to combine this with ensuring the property met our due diligence and was a sound long term investment making this assignment a little more complex than usual.
- Good surplus cash flow
- Existing property owner
- Budget up to $750,000
- Buying for investment but plans for a good family friend to occupy the property for the long term
- Can afford up to $150 per week to put towards new investment property
- Would like to purchase another investment property in the short to medium term
Client Wish List
- Suburbs: Berwick, Narre Warren, Beaconsfield, Cranbourne North, Clyde North
- Minimum 4 bedrooms
- 2 bathrooms (2 master bedrooms preferred with a 3rd general use bathroom but hard to come by and not a must have)
- Minimum 2 formal living areas plus dining area. Ideally the 2 formal living would be opposite ends of the house
- Double garage
- Large kitchen
- Reasonable size rear yard with enough room for dog and kids
- Entertainment area, nice enclosed outdoor area, large shed or we can convert the garage if need be
- Enough space to minimize noise cross over, specifically with the 2 formal living areas as they will both be lounges/theatre being used at the same time.
- Possible 2nd entry to house to avoid trafficking through areas as much as possible.
- 4 bedroom + study
- 2 bathrooms
- Double garage with side access
- Stunning, large and unique undercover, decked alfresco area
- Excellent location in prestigious estate
- Close proximity to ample existing primary and secondary schools
- Only 1km from shopping centre
- High quality finishes including timber floors, alarm system, high ceilings and high quality appliances
- 670m2 block
This property came onto the market and we attended the first open for inspection along with over 40 other parties. We knew this property met our criteria and we also knew it would be popular with competing buyers because of the quality and location. Our competitors would be families and downsizers in the area who would be highly emotional and probably prepared to pay more than this property was worth.
We jumped onto our research immediately and after dissecting over 10 comparable sales in the area we valued this property at $670,000. We promptly put in a firm offer on the Thursday prior to the second weekend of opens and before the property featured in the local newspapers. We kept the pressure on the agent and although we had to increase our original offer, we managed to secure it for $650,000 with unbeatable terms. If there had been a second and third weekend of opens as well as a local media campaign I have absolutely no doubt we would have ended up in a bidding war with numerous other parties and it would have taken a much higher price to secure it.
Big congratulations to our client and to the PW team for some bold and quick decision making!