Take control of negotiations when buying. Get a better price!

I’ve recently discovered that in VIC this can be a powerful stratergy when buying.

Properties in Melbourne are often under quoted. E.g. Vendor has reserve of 500k however property is listed at 420k -470k. The reason behind this is to generate interest in the property. A lot of buyers expect properties to be sold over the advertised range and see this as a 500k plus property.

However. If you offer 480k in writing, the vendor / agent can no longer advertise a 420-470k price range (it is now blatant under quoting which is illegal). They now have to adjust to 480k + or a range starting at 480k. This takes the wind out of their advertising campeign and hopefully pushes interest away from the property (people now expect reserve to be 550k).

Therefore you, as a buyer can take control of the vendors marketing stratergies reducing the level of interest in the property you want to buy.

Bit aggresive yes. But if the agents are playing games on price (false advertising). Why not take a little control of negotiations.

P.s. the only reason agents still get away with under quoting is because the reserve is left “blank” until the day of auction… A rejected offer proves the lower figure in the range won’t be enough – therefore can no longer be advertised.

Knowledge is power….

I think that line is taken…