It was a very solid 62% clearance rate across the weekend where the number of auctions that were reported was 695. Nearly 20% of these sold prior to auction and there are over 250 passed in and most will still be on the market. Next week there are 1200 gazetted auctions and, with a clearance rate staying around 60%, about 720 properties should sell leaving another 480 to be sold after by private treaty negotiation.
Auctions can have multiple bidders, be announced “ON THE MARKET” by the auctioneer, and then you know that the person with the best bidding technique or most money wins. This is the rarest of occurrences. Only about one in ten sales in Melbourne end up as bidder vs bidder in an auction that is “ON THE MARKET”. All the rest are going to be a one on one negotiation with the agent. There are private treaty negotiations, there are negotiations prior to auction and there are negotiations after a pass in at auction.
If you are negotiating on your own behalf then you are one step behind the vendor already. There is a notable saying amongst experienced negotiators: “Never allow the salesman direct access to the decision maker”. Have you ever noticed the fact you don’t get to talk directly to the vendor, only his agent. There is another saying amongst solicitors that is worthy of note here: “A solicitor that represents themselves has a fool for a client.”
If you are negotiating for a property worth hundreds of thousands of dollars or millions of dollars the outcome will be vastly different if you have an experienced negotiator acting for you.
If you are considering a purchase of a property in the coming weeks and you have found your dream home, give our office a call and we can have a no obligation chat. The fee paid to a negotiator is usually insignificant in comparison to what they can save you in a negotiation.
Ian James
Director
JPP Buyer Advocates