Our challenges for 2016 have largely hinged around reduced auction success rates and emotion-fueled competition. We have fielded enquiry from both overseas and interstate and this has included an extraordinary amount of interest from Sydney-based investors. Whether Sydneysiders have felt the brunt of their crazy market and opted for their southern cousin's offering, or perhaps they have remembered all too well the rise of the market during the 2000 Olympics and the ten flat years which followed, our phone lines have been buzzing.
The reliance on good agent relationships, off-market opportunities and pre-auction deals have been a strong focus for us throughout 2016. From 1 Jan to 1 December in 2016, our breakdown of each category of negotiation has been unique when contrasted against past years.
Our broad strategies have taken into account the influence that the sales agent represents when it comes to the sales process.
Understanding the Agent's rules is imperative and Amy and Cate have both penned several articles in an effort to shed light for buyers who are trying to play their cards as effectively as possible. Differentiating between the various methods adopted by agents when dealing with competing buyers can make a significant difference... the methods range from boardroom auction, round robin,
'best and highest', and
public auction. Many buyers have underestimated the disadvantages associated with the various options, and confirming the rules
prior to negotiation is imperative in this fast-paced, tough climate.
This December we reflect on some of the quirky 2016 negotiations we've experienced....
The first which comes to mind is the story of bidding at auction with a strange pre-negotiated condition. A late phone call from an agent about a townhouse due to auction that weekend caught our attention. Our new client had a specific set of criteria and this property was a great potential match. On inspection, every important item seemed to be checked off. We promptly called our clients only to find that one party was here in Melbourrne, working in their office, while the other was on holidays interstate with her friends. The auction was only two days away, yet only one party could inspect. As we feared, he liked the property but was loathe to make a decision without her sign off. What did we manage to negotiate? Bidding with a "subject to wife liking it" clause. It just goes to show that anything is negotiable.
The second quirky purchase has to be one in Sunshine we secured for dear clients. The property had been online for well over a year and in a rapidly growing market, what once appeared a hefty price tag quickly became a bit of a bargain. We didn't argue too hard with the agent. We just offered close to the asking price and exercised a preparedness to negotiate. $536,000 for this well-located, 3BR house on a full block in sought-after Benjamin St may have been a lofty price in late 2014, but was a great buy in March this year. Our clients carried out a clever renovation and their subsequent bank valuation has set them up for continued equity availability for their next project.
The most quirky purchase we've experienced in a while was the purchase of a three bedroom, period house in Yarraville which had sold at auction, but could not settle. For whatever reason, the buyers had made the decision to on-sell the property prior to settlement but had struggled to find a buyer who would match their purchase price on auction day. Our clients saw the opportunity and appointed a great lawyer who guided them through the process. Securing their future home for $70,000 less than original purchase price made the difference between buying a house and a townhouse. While financial loss for another party is never pleasant, an opportunity presented itself for our clients and they were able to plough through the complexity and release the original buyers from a contract the no longer wanted.... and all on the eve of their wedding day.
2016 has been a wonderful year for the Cate Bakos Property team, seeing the appointment of two fabulous women, a book launch for Cate's collection of stories and a new office move which is just weeks away as we type.
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Renee Berger, our much-loved, efficient and personable post-sales advocate joined us earlier this year and has streamlined every client's pre-settlment experience. Ren has brought drive and fun with her and we can't wait to welcome her four-day week next year. Ren commenced auction bidding training and following our auction bidder polishing course, she is now out with Cate and Amy regularly supporting our clients.
Jeanette Coppolino is our most recent team member and we look forward to Jeanette redefining and managing our process time lines, new enquiries, supporting us with our social media strategy and managing Cate's diary.
Cate's book "Successful Property Investment" was a significant achievement for the whole team when it went to print in September. Not only was it a
culmination of two years' of work for Cate, but Amy's proofing and Ian and Gab's constant support throughout the editing process enabled an idea to become a tangible output. Cate's intimate book launch in October celebrated a long haul and a proud achievement.
Cate, Amy and our valued supporters Cate and publisher Michael Alf
Lastly, our
team video shares our crazy office vibe and love for what we do.
Below we've featured three November purchases which we loved playing a part in.
We wish all of our loyal supporters, treasured clients, industry colleagues and fellow Buyer's Agents a safe, happy and
chilled Christmas break and a fabulous 2017.
What a year!
