This story relates to a tactic that I performed two weeks ago at an auction, which caught the attention of the Domain Real Estate journalists.
In the west, a state-of-the-art four-bedroom house at 20 Allan Street, Aberfeldie, saw one bidder bid against his own buyer’s advocate at the tail end of 100 bids, creating a two-man shootout to discourage a remaining bidder in the fray. It worked.
Agent Lou Rendina knocked it down for $1.634 million (reserve was $1.52 million).
It was actually down to $1,000 bids not $100 as the journalist printed. Though the main point is that we achieved the desired result.
The property was purchased in a highly sought after location that is dominated by owner occupier demand. Despite the recent news that property prices may be correcting and the market being effected by bank interest rate increases, this was not a factor that slowed the bidding or demand down at the auction of 20 Allan Street Aberfeldie.
There were approximately six (6) key bidders in a crowd of one hundred and fifty (150) people.
The fact that most of the buyers in the location are families seeking a long term lifestyle investment to occupy as their principal place of residence surrounded by notable schools, shops, parklands, river and transport only increases the emotionally driven bidding by the competition.
We entered the auction with our buyers that were prepared with a strategy after we performed due diligence. The under bidder was not giving up and driving the price higher tailing me with $1,000 bids.
Throughout the auction I strategically positioned my client in the crowd to remain anonymous and independent from me as well as maintained confidentiality of my clients identity from the sales agency and auctioneer. After other competitors seemed to drop off and the property was truly on the market, I utilised pre-arranged subtle signals to my client which triggered them to out-bid me by a few thousand. This shocked the under bidder who seemed to believe that that I was at a maximum limit and was not expecting new competition. In times of strong market activity in sought after locations, we must do what it takes legally to secure the right property for our clients. On this occasion the tactic proved effective for our client.
It is great working with investors to minimise risk and maximise capital growth and rental yield opportunities when selecting and purchasing property. Though once in a while it is fantastic to witness the pure joy on the faces of a family who have just secured their dream home in the ideal location for their family’s future and we helped make it happen.
Mark Errichiello, Buyers Agent
Licensed Estate Agent, CEA (REIV), Director (OIEC)
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