Melbourne property requires a logical approach

The Melbourne property market is certainly changing and this weekend has seen more people out and about and more people putting their hands up at auction.

The other thing we have noticed is that in 2017, the agents quotes were irrelevant because every property just about went way over the quote. In 2018 a lot of properties sold under or within the quote and this year, so far it seems that properties are selling within or above the quote and by how much is the million dollar question.

With the Melbourne property market a constant changing landscape it is really difficult to know what the true value of a property is and other than just listening to the agent or the bank telling you what you can spend, how do you know if you are paying too much or are attending an auction with not a high enough limit?

You really do need to be out in the Melbourne property market every day and compare like for like so that when you do turn up at auction or need to negotiate for that property in a private sale situation you are well prepared and are not making a costly mistake.

What we are also noticing is how much people give away at auction. They try to hide their expressions with sunglasses and cross their arms or look very relaxed but ultimately most bidders still give themselves away.

At auction this weekend I saw one bidder holding strong and bidding confidently, however when it came to nearing his limit, his whole demeanour changed and it was obvious that he was almost out of cash. He was too emotionally invested and that is understandable, but this error cost him.

With more and more private sales happening around Melbourne and auctions starting to improve again it is relatively easy for the agent to tell when you are near your limit and when you have got more money. Ensure you are careful about what you say and how you act around an agent as you might be giving yourself away without knowing it.

Negotiating in the Melbourne property market can be challenging, however when the market changes as quickly as it has over the past 2 years, it is difficult to know whether you are over-paying for a property and if you are being misled or caught up in emotion on auction day.

We have seen even the most level-headed and logical people get carried away at auction and spend more money than they wanted to because they don’t want to look like they can’t afford the property or that they might have got the whole process wrong.

Don’t base what you will pay on last year’s figures or the recent media hype or statistics that tell you how much the Melbourne property market has dropped by, because you may still be overpaying for the property or you may even be under-valuing it and still run the risk of making a mistake.

For some tips on bidding and what to do at auction, visit our Bidding and Negotiating page to learn more or contact us to find out how we can save you from making a mistake that could cost you more than just your money.