The property was scheduled for auction, and I noticed the vendor was under considerable stress. To alleviate their tension and secure a deal, I initiated negotiations well below the market value, aiming to align with the couple’s stated budget constraints.
The couple had firmly declared their ceiling at $1.79 million, insisting they couldn’t stretch beyond this amount. Final offers were solicited, and in a moment of realization about the property’s true value and the significant discount it represented, the couple increased their offer to $1.831 million. Unfortunately, this adjustment came too late; the property had already been sold, pre auction for $1.830 million…they missed by just $1,000.
Their reluctance to be upfront about their actual buying power, under the guise that they “knew better,” led to this missed opportunity. Had they been transparent, this property could have provided them with immediate equity and been a remarkable asset in their portfolio. The Selling Agent was committed to conclude the transaction if we paid $1,831,000. Unfortunately there are no prizes for second place in property, they were emotional and upset, not willing to take responsibility for their decision making process and ultimately the purse strings that they controlled.
The lesson: Trust your Adviser, Know your Value and be decisive in Execution
