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VIDEO – The best $400 you will ever spend in due diligence.

Transcript:

If you are not sure how much you should be paying for a property, consider having it valued by an independent valuer before you sign a contract or bid at the auction. The cost can be about $400 which, in the overall scheme of things, is a drop in the bucket.

Once you choose a valuer, write them a letter of instruction, which states your requirements and provides information to help the valuer give you the most accurate advice.  With real estate, it is all about knowledge, homework and preparation. The use of a valuer will give you peace of mind and put you in the drivers seat no matter if you are a buyer or seller.

Here is another piece of advice for you – especially if you intend to buy at auction……if you are clever enough to have a valuation done before the auction, develop your bidding game plan around the valuation and set your ceiling price and do not exceed it.  Remember agents are trained to get you to pay a premium, that is their job – after all the agent on the day is working for the seller.

But if you are not concerned about paying too much, then I guess you won’t bother to have a valuation done – but if you are, get one done and stick to your limit.  Here are a couple of bidding tips – develop your own game plan and don’t be swayed by an  agent who is whispering in your ear.

If the agent tries to pull you away to have a conversation, resist.  If they get you away from the crowd, they have control.  Be firm, stay in control and if you miss it because it went over your limit – there will be another one.  If you buy it “emotionally” I can almost guarantee you will pay a premium.

Experienced bidders – buyers agents – like to stand where they can intimidate the other bidders and even the agents and auctioneer.   I have even seen a buyers agent stand right out front – almost beside the auctioneer – and face the crowd.   With an auction it is all about control and the agents and auctioneer are masters at winning that battle.  If you are not sure you can do that – think about getting a buyers agent to bid for you.

 

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