Buying a property is like playing chess... blindfolded against six different people at the same time.

What do playing chess and buying property have in common?

They are both incredibly hard to master, and playing the game is the only way to improve!

To succeed at chess, you can’t just focus on your next move but also anticipate your opponent's move. Similarly, the property game is about being a few moves ahead of the various players (stakeholders), from the seller and real estate agent to other buyers and even the broader market.

Many people approach property buying with a solo mindset. It's easy to get caught up in the excitement of finding your dream home, forgetting there's a whole group of players in this game. 

It's not just about you; it's about understanding the motivations of everyone else.

Auction dynamics

A crucial strategy in this real estate chess game is the decision to sell prior to auction or not. Why would an agent opt for a private sale when a hot auction can fetch a higher price? Plus, all that free marketing an auction brings, when a crowd of potential other owners ( and therefore potential new listings for the agent) can watch the result in the public arena. 

Sellers, too, have their reasons for preferring the auction route. An emotional and competitive atmosphere amongst buyers often leads to a better outcome for them.

Buyers may think placing an offer on a property before auction will get them the best ( read: cheaper) result, but this is not always true.  After all,  if you want to buy before auction, you have to create doubt in the minds of both the vendor and the agent; Are they really going to get a better result on the day of the auction? Hmm.  

It's not just about the number you're willing to pay; you need to understand the process – Dutch auction, sealed silent bids, or various other strategies agents may employ. 

And, after all your planning, it may come down to good old-fashioned laziness! An agent has to contact every contract holder if a solid pre-auction bid is received, which can be a lot of hassle. So, don’t be surprised if a property goes straight to auction without entertaining offers. 

Knowledge is a power move

If chess players watch Grand Masters and study books, you must do the same with real estate. 

Go to auctions (even if you don’t intend to buy) to see the various players in action. And study the market daily to understand the ever-evolving conditions so you can make informed decisions.

Sellers (with an agent by their side) will know when to list their property, how to price it effectively, and will adapt their strategy to suit the market.

For buyers, it involves identifying favourable conditions for purchasing, negotiating effectively, and recognising opportunities to tilt things in your favour. Leveraging these dynamics to your advantage requires dedication, research and strategic thinking.

Pick the right coach 

No matter how good you think you are (at property or chess), everyone benefits from having a coach in your corner. For someone looking to purchase a home, that coach is a Buyers Agent, and honesty is the key to a good relationship. 

A quality Buyers Agent won't sugar-coat things if you have your heart set on a three-bedroom house in Paddington but can't get close to the median price. It's not because they don't want to find your dream home; it might simply  not exist within your budget. 

So, it’s about facing up to the reality of your buying power and adjusting your strategy accordingly.

Stalemate or checkmate?

There’s plenty to consider if you want to come out on top in the property-buying game. Contact our friendly team if you need help understanding the motivations of all players, how to think several moves ahead and discover some gambits that work in your favour.