This article appeared in The Weekly Review.

My name is Mal James and I am a buyer agent. My clients Lyndon and Helen are considering a pre-auction offer, so I suggested I meet with the selling agent first. The agent is Michael and we met at Laurent in Toorak Rd. Note: Below may look scripted and cagey (on both sides) and possibly frustrating to read – it’s real life.

Mal: Good to see you again, Michael.

Michael: Still a latte? My shout!

Mal: Yep, your team is looking strong.

Michael: Better than FBJ’s clearance rates … and so are the Blues, which I think is what you are talking about. (Both smile),

Mal: Thanks … I needed the caffeine.

Michael: How can I help? You have a question on Chrystobel, which has started well. We seem to have buyer interest around the high ones and …

Mal: The vendor?

Michael: Nice people. They may have a different view to this changing market but, as you know, time will tell. I think the home will sell well – good position, very light, lots of space …

Mal: You can do my rating report!

Michael. And your question?

Mal: I have got a new client.

Michael: Whose name is?

Mal: A new nameless client who likes their privacy and who may well be your buyer.

Michael: Mmm, that’s interesting. Continue…

Mal: May well be the buyer on Chrystobel now…

Michael: … Meaning?

Mal: … Got contracts?

Michael: Just hit my desk. Are you meaning a deal now? Needs to be strong – over $2 million.

Mal: Do you think the vendor would entertain a pre-auction offer? Have they bought or is this a sticky one?

Michael: Let’s leave that … a pre-auction offer may be viewed with some merit.

Mal: Some merit?

Michael: It’s a possibility, need to be very strong.

Mal: Of course. How very strong?

Michael: Very strong.

Mal: Say around $2 million-ish?

Michael: Circle that, yes.

Mal: Circle 2. OK. Preferred terms?

Michael: Flexible – they haven’t bought.

Mal: So would I be wasting time with an offer?

Michael: Depends.

Mal: Try not to be too helpful, Michael. Have you had any offers?

Michael: I’m happy to go to auction. You’re making the running. I will present whatever you put forward and, yes, we had a verbal before the campaign over $2 million.

Mal: Wow! Do they regret not taking it?

Michael: Not sure. They may get more at auction.

Mal: Really. So if I put in an offer around $1.9 million, you wouldn’t recommend it?

Michael: I doubt it.

Mal: You wouldn’t reject it outright?

Michael: Not my decision to make; that is the vendors’.

Mal: My clients …

Michael: … your nameless clients …

Mal: … my nameless clients have a decision to make between Chrystobel and another home auctioned a week earlier.

Michael: Oh … really Mal! (Both laugh)

Mal: Michael, I can only tell you the truth … (Both laugh). OK, their desire to offer may not be here at auction … (silence) … Michael, I’m feeling like a shag on a rock. Give me some guidance please.

Michael: Why not just come to the auction?

Mal: Why not, if indeed, but your vendor may not be getting best price.

Michael: Thanks for thinking of my vendor. Have they got $2 million?

Mal: Would that buy it?

Michael: Maybe – certainly would on the day.

Mal: I’ve never heard that line before (both smirk) so …

Michael: So….

Mal: So, do you think I would be doing both our clients a disservice putting in a pre-auction offer?

Michael: I think you should think about it. As you know, I will put anything up and, assuming your clients offered something strong, then my vendor may ……. go either way. I would appreciate no tomorrow-night deadline. I’ll still deal with your client’s offer, but I’ve got my son’s footy and, just in case you’re not hearing me, I may find it hard to contact the vendor, if you get my drift.

Mal: Got it. No deadline offer tomorrow. In return, do you think you could make some general enquiries how an offer may be viewed at this stage?

Michael: I could, but you would need to be over $2 million and unconditional – eg lawyers signed off, building inspections completed and finances organised. I wouldn’t recommend a conditional offer.

Mal: Procedure … post-offer if acceptable is …

Michael: Usual – I will ring the other buyers, then maybe a boardroom auction.

Mal: You’re sworn to secrecy on my client’s offer …

Michael: (Pause) … Mal, you know I enjoy doing business with you …

Mal: 120 days is preferred by your client?

Michael: Yes… Mind if I take this call? Have we finished? Shall I be hearing from you soon?

Mal: No, yes and maybe. Thanks for the coffee.