Bidpro has uncovered a rare find for circa $600,000 property investors.  At this time when the property market is as flat as we have seen it for many years, there is very little to get excited about on the investment front.  That’s what we thought until we stumbled on a Queensland Sunshine Coast development that looks a clear standout.  25 house and land packages are about to come to the market in what is quickly becoming one of Queensland’s fastest growing regions, spurred on by an estimated $15.3m of infrastructure expenditure in the immediate future.   Here are the findings of our due diligence investigations -    Residential vacancy rates in this area are currently at 1.5%, representing a market in undersupply.  Pressure is therefore on rents to the extent that the gross return on these properties will be close to 5% on completion.  Situated only10 minutes from Maroochydore, 8 minutes from Mooloolabah, 15 minutes from the Sunshine Coast Airport, 2 minutes from the Sunshine Coast University and with schools, shopping centres and public amenities all within a stone’s throw, the location is AAA.  The following are just some of the things that are about to happen within proximity of this development that will no doubt have a further impact on rental and property prices -   ·     Sunshine Coast University Hospital ($1.8 billion) opened in 2017 with 450 beds and will grow to 738 beds by 2021.  Will create 4,500 direct employment opportunities and generate more than 11,000 construction jobs.  ·     Sunshine Coast Airport Upgrade ($347 million). New facilities catering for international flights. Will contribute $4.1 billion to the regional economy between 2020 and 2040 and 2,230 new full time jobs by 2040.  ·     Bruce Highway ($120 million) to widen from four to six lanes.  Due for completion in 2020.  ·     Insurance giant YOUI to make the Sunshine Coast its permanent Australian and New Zealand headquarters. With an estimated 3,000 staff (1,700 in Stage 1 by the end of this year), the total forecast economic benefit for the Sunshine Coast is $1.2 billion.  ·     Sunshine Plaza Redevelopment ($350 million) to create 5,700 jobs across the project.  ·     Proposed SunCentral Maroochydore, Oceanside Kawana and Aura Caloundara mixed use developments with a combined value of $10.6 billion, that will create many thousands of jobs in the development phase and on final completion.   Housing to accommodate this growth is in very short supply. This is therefore a unique opportunity to invest in property that will not only deliver strong returns from day one but will also gain further momentum from this incredible level of infrastructure commitment.   High rental returns combined with the prospect of strong capital growth is not easy to find, especially in the current Australian property environment.  That is why we find this opportunity extremely attractive and one that we are highly recommending to our clients and associates.  For further details, please don’t hesitate to give me a call on 0418 511 390.     Shane Heffernan  Managing Director  Bidpro Property Advocates 

We believe we have unearthed some exceptional residential property investments in one of Queensland’s rapidly growing regions which is earmarked for an extraordinary level of infrastructure expenditure in coming years to cater for a growing population.

Buyer's Market Returns

Buyer’s Market Returns … a time to consider your next move

After a sustained period of solid growth in the Melbourne residential property pricest, we are now seeing a significant switch from what was a seller’s market to a buyer’s market.

Auction clearance rates have fallen to circa 59% from a high of 82%, the number of bidders at auction has reduced to an average of 2 from a high of 5 and many auctions are now being passed in on “vendor bids”, which often means that a bid from the crowd was not received on the day.

The change in the market has been brought about by three principal factors:

1.     The major banks have tightened their lending practices…lower LVR’s and stricter lending criteria.

2.     Overseas buyers now operate under tighter regulation which makes it more difficult and more expensive for them to hold property in Australia. This has significantly reduced market competition.

3.     Adverse media commentary surrounding household debt in Australia and the prospect of interest rate rises at some time in the future.

It is in these changing times that people tend to “close up shop” by postponing the purchase of their new home and/or investment property.  Whilst this is a perfectly understandable response, it can also prove to be a time of lost opportunity.

We are now seeing some real value in the real estate market. There are many motivated sellers and fewer buyers.  Not all properties are being advertised on the open market, many are now being offered to us “off-market” and at very realistic prices that reflect the changed market conditions. 

The key is to make sure you buy at today’s value which is not always its asking price.  In the words of the great Warren Buffett:  “Price is what you pay, value is what you get”.  The message is to get value in the price you pay.

The following graph shows the trend in Melbourne median house prices in the period 1966 to 2016.  It demonstrates clearly the resilience of property to withstand the most severe of financial downturns.  

 

Median House Prices.png

 

In the period 1990 to 1992, interest rates in Australia were hovering around 17.5% in the “recession we had to have” according to our then Federal Treasurer, Paul Keating. A fall in house prices was followed soon after by a long, sustained period of exponential growth over a period of some 16 years, save for some minor short term dips along the way. 

In 2008, world financial markets were thrown into turmoil with what became known as the Global Financial Crisis.  Within 18 months, following a short term drop in overall property prices, the market recovered to register yet another period of solid growth.

It is impossible to predict how long the current dip in property prices will last but history tells us clearly that those who purchase in times of subdued property market conditions stand to make exceptional gains in the medium to long term. 

 

For other property related articles by Bidpro, please visit our Resource Centre at

www.bidpro.com.au 

If you would like to learn more about the services we offer, please contact Shane Heffernan

0418 511 390

 

Longer settlement periods when buying or selling property

The slowing of Australian residential property markets, triggered mainly by tighter lending criteria, now calls for a more flexible approach to the terms on which property is sold. 

Uncertainty is a key factor in dissuading vendors and purchasers of property from making good lifestyle decisions and now the biggest of the uncertainties is the time it will take to either buy or sell a property in the current real estate climate. 

Throughout the property boom we have recently experienced, sellers of property had little concern about bidding for a new home before they sold their own, knowing that there were plenty of buyers for their current home and that even if they didn’t sell in the usual time frame, bridging finance would be readily available at low cost.

This is no longer the case. Quality property is still selling well…but not all property. Some property is taking longer to sell and vendor expectations have needed to be adjusted to reflect the changed conditions. Bridging finance has become more difficult to obtain.

And so we are now seeing a very different environment….  

Sellers have become more reluctant to buy before they sell in a market where there are fewer buyers for their current home. They are also concerned that if they sell before they buy, they may not find a suitable property to move into within a reasonable time frame.

Buyers have become more reluctant to purchase prior to selling when there is uncertainty on how much their current home is actually worth, how long it well take to sell their home at a reasonable price, and fearing that bridging finance may not be available to them.

The common denominator in all of this is “time”. If buyers and sellers had more time to satisfy their transactional needs, more property would become available, more buyers would re-enter the residential property market and therefore more property transactions would result.

The simple solution is for vendors to offer longer settlement periods than the 60/90/120 days to which we are accustomed. A settlement offered at 6 months from the date of sale, with the right of the parties to settle earlier if mutually agreed, would significantly alleviate the pressures we are now experiencing. Vendors would have more time to source their next property after they have sold and purchasers would have more time to sell their homes once they have purchased. With these pressures reduced, people’s needs could be better met.

Last weekend Bidpro purchased a property in Kew on behalf of a client and negotiated a 5 months settlement to enable the purchasers to organise the sale of their current home. The vendors had not yet purchased a home as they had no certainty in relation to achieving a sale on the day, no certainty on the price they would achieve and no certainty of a likely settlement date. The longer term settlement in this instance is a clear “win-win” as it now enables both parties to achieve their objectives with greater certainty, in a timely manner and without the risk of making hasty decisions.

We believe that even in stronger market conditions, longer settlements will become a more accepted practice. They will be especially relevant to the downsizer/retiree market where vendors are selling their family home to move to something smaller such as an apartment that may not be ready for occupation for some time. Longer settlement periods can often be the difference between making the right move and not moving at all. They can also avoid having to make two moves…and no-one really wants to do that.

If you need “time”,  never be afraid to ask for it.

Property Advice for Under 25's

Much has been said and written in recent times about housing affordability and whether most young Australians will ever be able to afford to buy their own homes.  This debate follows a period of exponential growth in Australian house prices, especially within the eastern states of Melbourne and Sydney.

These concerns tend to be overstated and can often result in poor decisions being made by those who develop what we call “a fear of missing out”.

How often have you overheard the comment “at least you’re in the market” being uttered to a young new property owner?  This is usually code for “well, it’s not the greatest property but at least you’ve made a start”.  

Yes, everyone does need to make a start at some time but a decision to purchase must be based on sound principles that will deliver strong financial reward. Your first property purchase that can set you up for the future and provide a springboard for bigger and better things to come in later life. It is important therefore that you get it right.

And so what do you need to achieve your goal of owning a property?

Sure, money rates highly…but so too does patience.

In the current climate, if you are short of the required funds to purchase a property that will deliver strong capital gain in the future, the best strategy is to wait, save more and buy when the time is right. There is simply no point in purchasing a property that has limited upside, all for the sake of “being in the market”.  There can be far better ways to invest while you accumulate a larger deposit.

It must be remembered that the on-costs associated with buying a property are considerable. In a slower market they can take a long time to recoup before you begin to see a profit on your investment. Stamp duty and legal fees alone can amount to in excess of 5% of the purchase price.  Remember also that if it is an investment property you have purchased and not a home for your personal occupation, capital gains tax will be payable at the time you sell.  This is an additional cost that will further reduce your end profit.

Sound property investment involves ticking all the boxes. Location, condition, scope for further improvement, public transport proximity and potential for strong capital gain are some of the many considerations that need to be taken into account. So too are demand and supply factors, especially if you are contemplating the purchase of an apartment.

Ticking all the boxes comes at a cost and if you can’t achieve it within your current budget…wait, be patient, the time will come.

In determining your financial capacity to purchase the “right” property, there are a number of strategies you may also wish to consider:

  • If you are purchasing a property for your personal occupation, you may think about sharing the property in order to defray the cost of the mortgage payments. This can also be a great way to build equity in your investment.

  • If you do not wish to share the property, think about deferring occupation for a period of time by installing tenants for a year or two.

  • Whether for personal occupation or investment, co-ownership with a family member or friend could also be considered. This can be tricky but providing you have proper agreements in place to cover changes of circumstances, this can be an excellent way of buying a quality property and accelerating your property ambitions.

There are many ways of entering the property market and you can be assured of success providing you are smart in the way you go about it. Understand what you are doing, take advice and protect both your legal and financial position.  And yes, exercise patience.

 

For other property related articles by Bidpro, please visit our Resource Centre at

www.bidpro.com.au

If you would like to learn more about the services we offer, please contact Shane Heffernan

0418 511 390

 

Who can you trust ?

In almost every aspect of wealth creation, most people take advice on how best to achieve a successful outcome.  Whether investing in a business, shares, property or currency, good results are usually underpinned by reliable, informed advice from people who are expert in their field.

When buying a home or investment property, buyers must understand that it is the real agent’s responsibility to act first and foremost for his client, the vendor.  The agent must endeavour to achieve the maximum price on the very best terms and is under no obligation to protect a buyer from making an uninformed decision on any aspect of the property transaction.

It follows, therefore, that prudent buyers will engage a trusted, reliable advocate to help them through the maze of issues that need to be addressed when buying real estate. There can not only be a great risk in relying upon information provided to you throughout the marketing campaign but there may also be important, undisclosed information that needs to be considered.

Here are just some of the issues you will need to address:

Are there any local developments that are likely to affect its current and future value?

Are there any town planning or environmental controls that will limit its scope for further improvement?

Who do I engage to undertake a thorough structural assessment of the improvements?

Should I have a legal review of the sale documents and who should I appoint to do this?

What will be the impact of any heritage or vegetation overlays?

A professional advocate will readily identify the issues and provide informed advice on how best to deal with them.

Your advocate will also help you in answering the many questions that determine whether the property is the right one for you and what your parameters of purchase should be:

Is this a good location?

What are the property’s prospects for future capital gain?

What is the maximum price you should pay?

Should and can you obtain an extended settlement period?

How do you handle the sale of your existing home?

Should you bid at auction yourself and what advantages are there in having an advocate bid for you?

And so…….Who can you trust to be your reliable, informed advocate?

There are now many property advocates operating in the marketplace who provide the expertise and reliability you need.

At Bidpro, we believe we are at the forefront of providing property advocacy services. You can trust us

to provide reliable, honest and informed advice based on our wealth of experience.  

Our track record and reputation speaks for itself.

 

For other property related articles by Bidpro, please visit our Resource Centre at

www.bidpro.com.au

If you would like to learn more about the services we offer, please contact Shane Heffernan

0418 511 390

 

Why engage a professional bidder?

Q.  Why engage a professional bidder?

A.  To ensure you give yourself the best possible chance to secure the property of your choice.

Many people believe that bidding at auction is simply about putting your hand in the air in competition with other parties and hoping the highest bid lands with you at the conclusion of the bidding process.

In essence, that is what it is… but how do you know you are doing everything you can to deter competition, minimise the price you pay and thereby end up with the keys to the property on favourable terms?

A quick test

If you have previously had the experience of bidding at auction, rate yourself by answering the following questions:

Was I successful in purchasing the property?

Did I purchase within my budget?

Did I enter the bidding at the right time?

Where did I stand throughout the auction?

What did I do to break up competitive bidding?

Was my body language right in acting as a deterrent to other buyers?

Did I show any weakness or nervousness throughout the process?

Were there any times throughout the auction that I was uncertain about where the bidding was at?

Was there any time throughout the auction that I was uncertain as to whether the property was on the market to be sold “under the hammer”?

Did I feel after the auction that I could have done things differently to achieve a better outcome?

If the property was passed in to you, ask yourself the following additional questions:

Did I secure the property?

How clear was I about how I should handle the post auction negotiation?  Offer more?  Not budge on price?

How comfortable did I feel in the negotiation process?

Did I walk away feeling I offered or paid too much?

If unsuccessful, should I have offered more?

Your score

If you scored 100% in this simple test, you don’t need a professional bidder to act for you in the future.  In fact, you should become one!

A score of 95% or less should have you seriously thinking about engaging the services of a professional.

Professional property advocates are trained and experienced in performing under stressful auction conditions and in most cases can save you not only a lot of anxiety, but also a lot of money.

Without the necessary knowledge and experience, auctions are not only intimidating, they are confusing.

Anonymity

Many of our clients, for all sorts of reasons, prefer to stay anonymous when buying a property.

If you are known to the selling agent, it can sometimes work against you. If you are a person who seeks privacy in your day to day dealings, the auction system doesn’t provide it, unless you engage someone to act for you.

Staying anonymous can be a smart strategy that can work in your favour. 

At Bidpro, we are regularly engaged to bid at auction on behalf of our clients.  Often we do this under Power of Attorney.  

For other property related articles by Bidpro, please visit our Resource Centre at

www.bidpro.com.au

If you would like to learn more about the services we offer, please contact Shane Heffernan

0418 511 390

Is now the time to buy property?

Is now the time to buy property?

This is a question we are being asked by our clients on a regular basis in response to significantly changed property market conditions.

Our answer is quite clear

NOW IS A GREAT TIME TO BUY PROPERTY providing you are selective in what you buy and you only buy quality.

We are now seeing some excellent opportunities that meet our strict selection criteria, both on and off market. Importantly, they are correctly priced to reflect the current downturn. 

Many prospective purchasers remain concerned that prices will reduce further and it is therefore better to wait a little longer before re-entering the market. Our response to this is yes, it is possible that prices could fall a little further but no-one can say for certain that this will be the case nor can anyone predict by how much.  In the meantime, holding back may result in missing out on an outstanding opportunity that simply won’t be available in a stronger market and certainly not at the price at which it can be purchased today.

History tells us that property downturns are relatively short-lived and when recovery occurs it is both quick and emphatic. Given that the typical home in Australia is now owned for some 10.5 years, purchasers in today’s market have before them one of those rare opportunities in the property cycle to buy at discounted prices with the potential to benefit from strong capital gain over the ensuing decade.

The graph below shows the trend in Melbourne median house prices in the period 1966 to 2016.  It demonstrates clearly the resilience of property to withstand the most severe of financial downturns.  It also maps the most significant economic events to hit the Australian economy over that time, the resultant short-term impact on property prices and the ensuing sharp, somewhat exponential, recoveries. 

Median.png

What this graph tells us is that losses in value are generally very quickly recouped following a downturn and that holding back for too long can often limit the opportunity to benefit from significant future capital gain. This was particularly evident at the time of the 2008 Global Financial Crisis.  The dramatic drop in median house prices was fully recovered within 18 months of the beginning of the GFC.  This period was then followed by a sustained period of strong price growth.  

The current downturn in the property market has been triggered in part by a major turnaround in the lending policies of the major banks. Stricter criteria now applies, loan to value ratios have been reduced,  interest only loans are being phased out and bridging finance has become more difficult to obtain.

As a result of these changes to lending policies, there are now several steps you must take before considering your next purchase:

1.     Ask your bank or broker for an estimate of how much they would be prepared to advance?

2.     Obtain written pre-approval for the proposed loan.

3.     If you are thinking of selling your home to upgrade and want to purchase before you sell,  check with your bank that bridging finance will be available to you.  This may be necessary should it take longer than anticipated to sell your existing home. If bridging finance is not available, you will need to sell before you buy.

4.     Establish what your existing home is worth and take 10% off that value to determine how much you can afford to pay for your next home.  Better to be conservative than optimistic. Windfalls are a cause for celebration but shortfalls are a cause for castigation.

Having ticked off on items 1 to 4, it’s time to decide what to buy, where to buy and when to buy. 

Not all property comes with a “buy” recommendation from Bidpro.  Some property we recommend you simply “don’t buy”. It is important to seek independent advice…and that’s what we are here for.

 

For other property related articles by Bidpro, please visit our Resource Centre at

www.bidpro.com.au 

If you would like to learn more about the services we offer, please contact Shane Heffernan

0418 511 390

Take a break and grant Power of Attorney

So, you have booked a long overdue holiday and the house you want to buy has come on the market and will be auctioned while you are away.

This can be one of many reasons why people need someone they can rely upon for help in securing a property in their absence. Work commitments, business conferences and sickness can be others.

We at Bidpro can help with a very simple solution. We often act for clients under Power of Attorney. This means that before you depart, you complete a legal document that authorises us to sign the Contract of Sale on your behalf for the purchase of a specified property.

You can go away knowing that you will be represented professionally and with all legal safeguards in place to secure the property of your choice and within the limits of your budget.

We have a standard POA document we use which has been prepared by property lawyers and meets all legal requirements. The document is also accompanied by a form which states clearly the maximum price to which you authorise us to bid for the property.

Your absence from an auction or sale negotiation never presents a problem. We can handle everything from go to whoa, giving you peace of mind that you are not walking away from an opportunity to purchase a property that you really like or need.

 

For other property related articles by Bidpro, please visit our Resource Centre at

www.bidpro.com.au

If you would like to learn more about the services we offer, please contact Shane Heffernan

0418 511 390

Tips for downsizing

You love your home, especially since it’s the home you have seen your kids grow up in, every corner reminds you of a special memory. The thing is, the kids are gone now and it feels pretty empty at times. Why do you need that much space?

The Federal Government is encouraging “empty nesters” to downsize by offering significant superannuation incentives to do so.

For those wishing to capitalise on these changes, there are some tips to be aware of to make sure the big move ticks all boxes:

  • Start making a list of essential requirements:

1. Where you would like to live in terms of proximity to family, friends, medical facilities and recreational interests

2. Number of rooms needed to match your planned lifestyle

3. Size of rooms to accommodate not only your favourite furniture items but the number of people who will fill those rooms

4. Public transport and shopping proximity

5. Outdoor living and garden preferences

6. Pet suitability (where applicable) in terms of size and permissibility

  • Surf the recognised real estate portals to develop an idea of what will and won’t work for you e.g. style of accommodation (apartment, townhouse, etc), floor plan and location.

  • Get an objective opinion and ask family and friends what they believe would suit you best. Those looking from the outside sometimes have a better idea than those looking from within.

  • Know what your existing house is worth and how much you will have to pay for a suitable downsized replacement – if anything at all.

  • Buy and sell in the same market unless you are confident there is financial advantage in doing otherwise.

  • Don’t cut corners, buy or build quality…the rewards will follow.

  • Determine whether downsizing can be achieved on your existing land through subdivision and/or redevelopment. This option is not often thought of but can produce a win-win scenario.

Decisions to downsize are often placed in the “too hard” basket and will often not eventuate. Remember, the decision to downsize is rarely regretted by those who choose it and is often the beginning of a new lease on life. It can deliver a fresh lifestyle you never even dreamed of.

There are many factors to be considered in deciding on whether to downsize.

Consider getting help from someone with market knowledge, search capabilities and negotiating skills who will ensure you buy the right property at the right price.

A property advocate can assist you in determining the likely price you will receive for your existing home and the best strategy for achieving an excellent downsizing result. He can also act as your advocate in purchasing your new home.

 

For other property related articles by Bidpro, please visit our Resource Centre at

www.bidpro.com.au 

If you would like to learn more about the services we offer, please contact Shane Heffernan

0418 511 390

Don't let a dark cloud block your vision

As media commentary continues to depict dark clouds appearing over the residential property market, we need to constantly remind ourselves that these are in fact times when future wealth can be genuinely created.

The property market today

We have seen some significant falls in Melbourne’s property prices over the past nine months, brought about largely by a change in bank lending policies.  Tighter lending practices of the major banks has lead to fewer buyers, fewer properties on the market, lower auction clearance rates and yes, lower prices.

And so does this mean we should all pack up shop and hold back decisions to purchase property?  Definitely not!  This is the time when you can really set yourself up if you are smart in the way you go about it.

The recession “we had to have”

 Let’s cast our minds back to the early 1990’s when home loan interest rates hit highs of around 17% and unemployment in Victoria rose to 11.4%. At this time, the median house price in Melbourne dropped 7.4% in the two year period 1990 to1992. We were clearly in deep recession.

And so what followed?  The market made a quick recovery and within 12 months the median house price was back to where it was before the recession began. A relatively flat period followed, after which we experienced an exponential rise in property prices lasting some 12 years with the median house price gaining a whopping 325%.

The Global Financial Crisis

 In 2008 the Global Financial Crisis (GFC) swept through financial markets, threatening to destroy the world economies, including Australia’s.

This was widely regarded as the greatest financial crisis the world had experienced since the Great Depression of the 1930’s.

Again, as with the early 1990’s recession, we experienced a sudden drop in property prices… but once again the fall was short lived.  By mid 2009, the Melbourne real estate market was back on an upward trajectory with median house prices rising some 30% in just a little over 12 months.

So where to from here?

Some pundits are predicting a major correction to property prices over the next 12 months while others are forecasting a soft landing. Bidpro tends to support the latter scenario.

Even if we were to take the worst case scenario, history tells us that if you buy in the down times, there is big money to be made when the market recovers.

Will interest rates take a dramatic rise over the next couple of years? Probably not, unless we are set for a major world economic reset … and none of us can predict that.

By purchasing in a depressed market, there can be a huge upside in times of recovery.

Will bank lending criteria become any more stringent than it is at the present time? …probably not, the belt tightening appears to be already in place.

It looks awfully like a good time to buying property.

The key is to stick to the fundamental rules -

  • Right property, right location, right price.

And remember -

  • Quality property can lose value in difficult market conditions but it generally loses the least value, is always the quickest to recover and will always outpace inferior stock.
  • When a market recovers, everyone chases the quality stock first and the competition simply drives prices higher.
  • Wealth creation can be fast tracked when adopting counter cyclical strategies.  By purchasing in a depressed market, there can be a huge upside in times of recovery.

There are quality properties available right now. Many are off-market and most vendors in the current climate are prepared to sell at very realistic prices that reflect the changed market conditions.

It could be a good time to make a move.

Don’t let a dark cloud block your vision!

 

For other property related articles by Bidpro, please visit our Resource Centre at

www.bidpro.com.au

If you would like to learn more about the services we offer, please contact Shane Heffernan

0418 511 390

13 rules for successfully bidding at auction

For many people, bidding at auction can be a daunting task. There are many things to consider, some of which require good judgement calls and quick responses. Do I open the bidding or hold back and wait?

  • If I open the bidding, do I open high or low?
  • What demeanour should I portray at the auction?
  • How do I take control of the bidding process?
  • How do I best fight off competitive bidding on the day?
  • If the property looks likely to be passed in at a figure I can afford, what do I do to ensure I am open to the negotiation?
  • If the property is passed in to me, how do I handle the negotiation so that I don’t pay too much?

These are only some of the many issues that may need to be dealt with at auction and if not handled professionally, can often lead to you either missing out on a property you really want, or possibly paying more than you needed to.

Rules to follow

To put all your chances on your side, you should engage the services of a professional buyer’s advocate but if you choose not to, here are some handy hints that may help during an auction:

  1. Never give the selling agent a hint on the price you may be prepared to bid to for a property.
  2. On the day of auction, arrive early and try to get a feel for who else is there and whether they are genuine buyers or just onlookers.
  3. Before the auction begins, place yourself in a prominent, visible position in the crowd.
  4. Always project confidence throughout the entire auction process. It makes the other bidders think that you have deep pockets and no limit.
  5. Decide on the day if you are going to open the bidding or hold back. This will often be determined by the level of interest in the property. As a general rule, hold back when there is minimal interest; go hard early when there is strong interest.
  6. If you hold back in the first instance, ensure you are loud, clear and authoritative when you eventually enter the bidding.
  7. Call out your bids in full (in other words $700,000 instead of just increments of say $10,000).
  8. Avoid breaking down the bidding increments too early as it often signals a sign of a weakening buyer with not much capacity remaining.
  9. If you choose to break down the increments, don’t ask the auctioneer, tell him. In other words, don’t ask him if he’ll take $5,000 bids…just call “take 5” loud and clear.
  10. If the property is going to pass in, make sure you are the highest bidder, as this allows first right to negotiate with the vendor.
  11. If the property is passed in to you, remember that the next most interested party was only prepared to go to a price one bid less than your bid. To pay a significant sum higher than your auction bid may therefore be paying too much.
  12. Be prepared to miss out by “walking away” at anything above your predetermined limit. There will always be another opportunity.
  13. If you are uncomfortable bidding at auction, engage a professional. It can save you stress and often save you money.

For other property related articles by Bidpro, please visit our Resource Centre at

 

www.bidpro.com.au

If you would like to learn more about the services we offer, please contact Shane Heffernan

0418 511 390