As you've probably spotted there are a lot of tenders around these days, and it seems to be a real favourite with Wellington real estate companies.
For any prospective buyer putting your 'best offer' on paper can be a pretty scary process. Should you aim high, but risk paying too much? Do you aim low to get a bargain - but risk missing out?
To help maximise your chances we've spoken to real estate agents, read the top tips and put our thinking caps on! Here are our top recommendations:
1. Don't be put off by the competition! A busy open home doesn't mean there will be hundreds of tenders submitted. Half the people who view properties are probably neighbours, people not really looking to buy and of the remainder only a few will think the property is suitable. If you have 30 parties you'll probably only receive 1-2 offers, so don't be put of my the number of viewing parties.
2. Think carefully about how your offer is perceived. With any offer you make you want it to look as 'big' as possible. Putting in an offer of $299,000 might seem like a great idea, but the perception of $299,000 against $301,000 can be huge in the eyes of a seller. For $2k more you can improve the 'look and feel' of your offer by stepping into the $300k's.
3. Add some lower offer numbers. This is a super simple idea, but works surprisingly well. By writing in a few lower offers, and then scoring them out you can show the vendor your mental process, and reduce the chances of them coming back looking for more money.
As the day of the tender gets closer you're offer will probably go up, so show that on the form. It sends a great message to the vendor, and shows you've really pushed yourselves to your offer limit.
4. Put It In Writing. If you want to maximise your chances of winning then there's nothing quite like adding a personal touch to your offer. Put pen to paper and write about how much you love the house, how much your family would love to play in the great gardens etc etc. If you can show the vendor you'll love the house as much as they have this can sometimes mean winning above higher cash offers. Owners want their home to go to someone who will enjoy it as much as they have - so let them know what it will mean to you/your family.
5. Lose the Conditions. If you can put in an offer without 'subject to finance', 'subject to selling your own property' etc you stand a much better chance of winning the tender. Talk to us about putting a pre-approval in place, get the builders inspection done before hand if you can. If you find a place that you really love then it will be worth paying a bit upfront to maximise your chances of winning. It could work out to be the best money you've spent!
Brian MacLean looks into tips, ideas and strategies you can use to get ahead financially..