Pre-Auction: Setting the Foundation
1. Pricing Analysis for Our Clients
The journey begins with a comprehensive pricing analysis tailored to each client’s unique needs. Our team assesses the property’s market value, potential for value appreciation, and historical data to arrive at an accurate price range.
2. Determining Price Brackets
One of the cornerstones of our strategy is determining clear price brackets:
Below Market Value: If there is a lack of interest from the market, a value we believe we can purchase the property for.
Fair Value: A realistic estimate of what the property is truly worth.
With Competition: Identifying scenarios with multiple bidders and a price we expect it to reach.
Overpaying: Recognising situations where emotional bidding might lead to overpaying.
3. Setting Expectations
By establishing these price brackets, we set clear expectations for our clients leading into auction day. This prevents them from chasing unrealistic bargains and keeps them focused on making informed decisions.
4. Scoping Out Pre-Auction Opportunities
While there are rarely true bargains in the real estate market, opportunities do exist. We actively scout for properties that may be purchased before they hit the auction block, giving our clients a head start in securing their dream property.
5. Pre-Auction Offers
Making pre-auction offers at realistic prices is a valuable strategy. Not only can it secure the property before auction, but it can also unsettle other interested parties, potentially discouraging emotional bidding on auction day.