BUYING IN A TOUGH MARKET - A GUIDE
Buying your dream home (or even getting into the property market) can be a tightrope walk at the best of times... add to that recent news headlines like “Buyers are confronting a sense of FOMO: Aussie property prices rise at fastest rate in 17 years” and “House prices surge at fastest rate since 2003” …and you’ve got a recipe for disaster.
What is a hopeful home buyer to do? If you go in low, you will lose the property to rival buyers. If you start out too high, you have no room to move in the negotiations…
We suggest you stick to the basics, even when there’s blood in the water and the frenzy is on:
Be prepared to decide. It is essential that you know what you want and are not sitting on the fence in any way. Be ready with an offer as soon as you locate the property that is right for you. Go in quick and make a move.
Stay on top. Keep abreast of developments in the real estate market where you want to buy. You can select a buyer’s agent or stalk the online listings but whenever a new property hits the market, you need to be there. If a new property becomes available, do whatever you can to get to the viewing.
Secure your mortgage. Sellers are spoiled for choice for buyers so negotiating without a finance clause is attractive. The more secure the deal, the better!
Offers. Before making an offer, make sure you (or your buyers agent) have compiled all relevant data for the property. When you’re ready to make an offer, be sensible as well as aggressive. Be intelligent.
Beware buyer’s frenzy. Especially relevant at the moment…don’t get caught up in the competition - it’s not that sort of contest. Stay objective when you’re viewing property. Take deep breaths. It’ll all work out. There is another property LITERALLY around the corner. The sellers and real estate agents are trying to create a sense of urgency. Don’t. Go. There.
Don’t skip home inspections. Due diligence may cost money, but they’ll save you in the long run. You want to ensure that your potential investment is a sound one and not a disaster waiting to happen.
