…When going to auction is a better idea than buying prior…

We had the pleasure of working with a lovely (but pragmatic) client recently.

She was looking for her ‘Camberwell’ home and had set her sights on this gorgeous Victorian era three bedroom property.

We conducted our comparable sales analysis and put together a ‘likely selling range’ projection for our client based on other single fronted Victorian properties which had sold in the area.

With vibrant cafes, shopping and park lands all within easy walking distance, our client had a tough task in front of her; she had to put an emotional weighting on the pleasure she’d gain and the lifestyle she could enjoy if she was the lucky winning bidder on the day.

But her pragmatism shone through.

She was prepared to accept disappointment if another buyer wanted to spend a figure well beyond a fair market price.

My conversations with the agent were positive from day one. We had a situation where there was one keen buyer; possibly two and maybe three contenders; but only ourselves and the other key buyer had shown enough strong interest to raise the vendors hopes that we were serious bidders and would be there on the day.

Could I have bought the property prior to auction?

Quite possibly.

But to do so would have involved paying a strong premium, and understandably. The property was one of those diamonds which had every facet scoring highly. It boasted a fabulous floor plan, stunningly designed spaces, light-filled rooms, modern finishes, a fabulous entertainer’s yard, off-street parking for three cars, and best of all – a short walk to great cafes and Camberwell’s fabulous junction.

Against all heartstrings being tugged, my buyer remained focused and sensible. We braced for the auction and stayed in close contact with the agents.

On auction day we met at a fabulous gluten-free cafe down the road;  Red Robin… and planned our tactics and set our top-price. What would be, would be. We discussed the three things which can happen at auction:

1. The property could sell under the hammer to us

2. The property could sell under the hammer to someone else

3. The property would pass in to us. Interestingly, people often ask whether the property could pass in to another bidder. We always reassure them that if the property is to pass in, it will pass in to us.

The auction surprised.

The other interested bidder was there. Her nerves were evident,, and we could sense her support crew and feel the tension. She had a family member bidding for her.

For whatever reason, the property passed in to us and our surprised client stood outside with her support person while the negotiations ensued. Had we chosen to pursue the property prior to auction, we’d have had to face a premium-price for the privilege.

So when is it advantageous to ‘keep your powder dry’ and continue through to auction-day?

When the buyer is pragmatic and not stuck on the property, and when the competing interest is not necessarily multiple, emotional buyers. These things aren’t always easy to detect though. When the property is not a broad mainstream appeal property, there is often a chance to buy well (not that this property was a non-mainstream appeal property).

Her pragmatism and willingness to believe that this was superb but not ‘the only fish in the sea’ won her over with our quest to secure her dream in a seller’s market. Luck, sensibility and preparedness to walk meant that she bought a beautiful home and bought well.

Our client’s gorgeous property was secured at a price and terms she was happy with… a successful mission.

Wishing her many wonderful moments in a home envied by all of us!