As a buyer’s agent, I am constantly being asked about how to buy in the current market when competition is so fierce and of course, how to avoid overpaying for a property. Knowing the market and the agent is important but here are a few insider tips that you can always use.
- Don’t be too emotional – it can be hard to control your enthusiasm when you have finally found ‘the one’ but loosing your cool and letting the agent know you love the property will cost you thousands. Always have someone you trust with you to keep you calm and don’t start jumping for joy until you’re well out of the agent’s sight!
- Never make an offer on the spot – even if it is ‘the one’. Go home, sit down and do your research to ensure you are making a reasonable offer. Yes you need to do this very quickly, often on the day you viewed the property, but make sure you have done the due diligence and know this is the right property and your offer is the right price before you proceed
- Dont give away too much – many real estate agents are lovely but in this transaction they are not your friend. Don’t tell the real estate agent what your budget is, in which school zone you need to be or that you really need a house with a granny flat for your sick mother-in-law. If the agent has this information, you are simply reducing your ability to negotiate. The real estate agent is legal obliged to get the best price for their client so they will use this information to their advantage and your ability to negotiate is gone
- Never overstretch at auction – know your limit and stick to it! Auctions are designed to play buyers off against each other and to be emotional (which works very well for the Vendor). Do not let this happen as you will be paying for it for the next 30 years! Always have someone you can trust with you at an auction and have your maximum limit burnt into your brain. Go to a few auctions so you know the process and you feel more comfortable when you are ready to register and bid
- Act quickly – the current market in the Eastern Suburbs is very hot which means properties are being snapped up, often before they are even advertised. Auction clearance rates are extremely high and many Vendors are accepting offers prior to auction so most properties are on the market for 4 weeks or less. This means that once your have found ‘the one’ you need to move fast to do all of the due diligence and evaluate the property. You may also want to make an offer prior to the auction
- Team work – in this fast moving market it is important that you have a good team of professionals you can trust and who will work quickly once you’ve found ‘the one’. Ensure your finance is pre-approved before you start looking, and if you have been looking for a while, check with your broker or bank that it is still valid and if they can do a better rate. You will also want to consider professionals such as a solicitor or conveyancer, building and pest inspectors and strata searches. You should have your finance pre-approved before you start looking and if you have been looking or some time check that your pre-approval has not expired. It is vital that your finances are in place and you know what due diligence is required as soon as you have found a property
- Be aware of Buyer Fatigue – if you have been looking for years, or if it just feels like you have been looking for years, you might feel like buying something that is just ok, but not quite your dream home. Don’t do it! Buying real estate is a huge investment that you will be paying off for many years and it truly can make or break you financially for years to come. If you can’t do this on your own anymore or just need a hand, seek professional help. Do not buy the wrong property!
- Know the full cost of buying and set your budget – when buying real estate there are many costs to consider additional to the purchase price. Costs such as stamp duty, strata, building & pest reports, legal fees and finance charges need to be considered as well as moving costs, strata fees or council rates and insurance. These costs really add up and need to be factored into your budget before you consider making an offer or put your hand up at auction. Know the full cost of buying and set your budget accordingly
Buying real estate is the biggest financial commitment you are ever likely to make. If you would like to buy the easy way contact us