#metroauctiontip Number 9: Should I negotiate prior to an auction?

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Picture this; Your campaign is two weeks in, everything is running smoothly, you’ve had good turnouts at your open homes and positive feedback from buyers… actually it is going so well that a buyer wants to negotiate a deal here and now. What do you do?

Whatever you do, be very clear about how you handle pre-auction negotiations. By entering into negotiations prior with out a clear objective and strategy, you run the risk of making a critical mistake which is showing the vendors hand. The beauty of an auction is that there is urgency, competition and emotions. It’s these emotions that drive the price upward and make you a superstar come auction day. Buyer psychology has shown us that if your vendor doesn’t countersign, it makes the buyer hungrier and of course willing to spend more.

The dialogue you need to call on here if the offer comes early in the campaign is; thank you for the offer, the vendor is appreciative of your serious intent to purchase prior to auction, however it really is too early in the campaign and we still have numerous interested buyers that need to inspect the property for us to evaluate serious feedback. At this stage, my seller is committed to selling at auction.

OR

The dialogue you need to call on here if the offer comes later in the campaign; thank you for the offer, the vendor is appreciative of your serious intent to purchase prior to auction, however being so late in the campaign, we have so many unconditional buyers in the mix that my seller is committed to selling at auction.

Of course, be sensible in this situation. If the buyer is showing tenacity, consistency and actually willing to offer an auction busting amount with no conditions or cooling off period… take the cash! It could be the best offer and again, the process has worked for you.

If you need training or guidance in regards to handling offers, negotiating with buyers or dialogue to use throughout your auction campaign, then contact Metro Auctions today!

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER