- We have not gotten as much interest as we would have liked
Selling agents who love taking property to auction tend to use this tactic to reel in a number of potential bidders when it comes auction day. They will offer a guide price to the bidders which are often beyond market value, they then catch them with low market interest and hope that you think you have secured the property at a bargain.
Begin by asking what reserve the seller might begin the auction with. It is most likely that you won’t get a straight answer/ figure, however you can figure out roughly what they are asking for by measuring the response against any comparable sales. You could potentially ask them, what price did you quote on when listing the property. By having the knowledge of the property market, it guides you so that you do not get caught in the agent’s trap.
- The vendor has asked for a signed-up contract by today
This is one area that will trick many buyers, as an agent will use this tactic to secure you into a contract to purchase the property so that you do not walk away and change your mind. However, if you think of it logically, if the vendor has been presented with more than one exited buyer who have given them an offer, then they would be more than happy to wait for the competition to play out, and see who the higher bidder is. So, do not rush into signing any contracts. If you wish to purchase the property, but you wish to have it inspected first, then don’t be scared to give a written offer with a condition clause, making it clear of what you expect.
- The vendor hasn’t given any indication on what they expect to happen.
Be extremely careful when a real estate agent tells you something like that, as agents work on commission meaning that agents want to know everything that the vendors want. Regardless if they tell the agent on a sales authority form, or indirectly through an informal chat. Even after you have questioned them and they still refuse you of what the vendors expect, then possibly change your approach, by asking, what type of limit should I set myself on auction day? By asking this, it makes the agent feel obliged to give you some sort of response to your question.