It’s a good strategy to negotiate a sale before the property goes on the market.
BUYING a property before it goes to market, known in the industry as a silent sale, is a great way to maximise your opportunities and should be a part of any property-buying strategy.
For first-home buyers and investors looking to purchase property at the lower end of the market, bidding on properties before they go to market makes sense.
This is a good way to beat the strong competition that these properties tend to attract.
Median-priced properties close to CBDs, transport and leisure facilities will always sell and rent well.
Consequently, these types of properties are subject to strong competition once they are listed, and often sell at auction for 5 to 10 per cent higher than their true market value.
So if your goal is to buy at or below market value, you need to look at properties before they’re listed.
Placing a property on the market brings with it marketing and advertising fees, so many vendors ask agents to show the property to their database before they embark on a formal sales campaign.
Other sellers find auctions risky and are nervous about whether buyers will attend or bid and may take a guaranteed offer beforehand rather than running the risk of an unfavourable sale at auction.
Often, professional investors and buyer agents handpick these listings before they go to market and the public gets what’s left.
If you want to get ahead of the competition you need to become savvy and learn the techniques of industry professionals.