The dreaded multiple offer scenario. It’s been happening a lot to me lately. In fact, it’s been happening since I began my Buyer’s Agent career and you know what, it ain’t going away anytime soon!
Brisbane property prices have continued to increase at a steady rate and it’s a constant question I am asked from investors and home buyers – will the market come back?
Well, the truth is, it really is anyone’s guess, but with what I know, I don’t see it happening anytime soon.
I’m confident the Brisbane property market is going to continue to move forward in terms of price and popularity, especially when it comes to two particular segments of the market – blue chip suburb houses (the properties the wealthier demographic fight over) and outer ring affordable homes (the ones the first home buyers go for).
That’s my two cents right there.
Units and apartments, you can forget about it. Especially the brand new ones.
So with that said, if you’re a buyer purchasing property in those competitive pockets of the market, make sure you’re going in armed with a possible multiple offer on your hands, because it’s highly likely you’re going to be competing against other hungry buyers who are looking to secure these in-demand properties.
And if you happen to land yourself in a multiple offer, here’s what I suggest doing.
- Play your own game. I always tell me clients that we play our own game when it comes to buying property. We don’t get caught up in what the agent tells us, or what other buyers might be doing. We stick to our guns, make strategic decisions based on our own research and we put a line in the sand when it comes to where we will walk when it comes to the deal at hand.
- Ask about the process. Find out from the selling agent how they handle a multiple offer situation. This can vary from agent to agent so it’s always best asking the question. Will there be a timeframe for all offers to be in before they will be presented to the seller? Will we get a “second bite of the cherry”? In other words, should you put your best offer forward the first time because you might not get another chance to improve it? (Note: most agents will always tell you to put your best offer forward and sometimes, they might approach the two top offers and ask them to go one better if they can. Watch this play because it does happen.
- Ask the agent “what will buy the property today?” In other words, you’re cutting to the chase. Tell me what I need to do or where my offer needs to be in order to secure the property today. A secondary question to this is, “will any of the offers you have received buy the property?” Again, you are asking the agent to level with you. Is the property going to be sold based on the offers the agent has, or is it likely that none of the offers are strong enough to secure the property.
AN AGENT WILL RARELY TELL YOU WHAT OTHER BUYERS HAVE OFFERED OR ARE PREPARED TO PAY; (THIS WOULD BE COMPLETELY UNDER-HANDED IF THEY DID!)
But what I find is they will sometimes reveal whether or not the property will in fact be sold based on the offers they have received.
This tells you something, and you can use this information to either sharpen the pencil on your own offer, or plan a new course of action.