Adrian Gidaro, 34, and his partner want to upsize from a one-bedroom apartment in Annandale in Sydney’s inner west but they haven’t had much luck yet.
“They want to have five or six people who potentially have a budget at that 10 per cent range, but they’re trying to capture those two or three people who have 20 to 30 per cent above the range.” Buyers should find out how many people are coming to the auction, and if the agent is cagey, try asking them how many building report downloads, strata report downloads and how many contract changes have taken place.
“They’re going to need that paddle to participate, and I know that if I want something valuable, the last person I’m going to give it to is my three-year-old.” Both Landrey and Dixon say there are two main strategies: go big, go early and psych out the rest of the competition, or bide your time and wait until the bids are slowing to strike.If you can see the bids are slowing, and the increments are reducing, there’s a good chance that, provided you have the budget, you could blow everyone else out of the water by striking with a bid that’s well above the increments being added, Landrey says.“Have your sunglasses on, don’t let people see you.
“We call it ‘running to the cliff’. If your budget is $1.2 million, you want to be bidding really confidently until you stop.” If they’re not using those words, there’s a chance it could be passed in. You then want to be the bidder with the highest offer because you will have the first right to negotiate.
If interest rates have changed during the 90 days of your pre-approval, this can also significantly alter your borrowing capacity. Generally speaking, buyers should have at least five or six business days before the pre-approval expires.