Depending on where you are in Australia, it is still very much a seller’s market. Stock is low and demand is high so most properties are selling quickly and auction clearance rates are holding strong.
If you have just sold your home and are looking for your next place, you may be wondering if you will ever be the winning bidder. Here are some tips to give you the edge over other buyers.
Tips for buying in a seller’s market
• Be prepared and pre-approved
In a seller’s market, you must be able to act quickly. Doing your homework and especially getting pre-approval for a home loan means you can make offers with confidence, hopefully before other buyers have even seen the property.
Preparation, too, will make the process easier. Figure out your ‘must-haves’, ‘won’t have’ and ‘nice to haves’ so you can narrow down your search and save yourself from attending endless home opens.
• Revise your criteria
In a perfect world, we would all live in our dream homes. However, sometimes you have to switch up your strategy and take a little less than you want.
Buying in a seller’s market may mean looking at a different suburb, sacrificing some garden space or choosing a place that needs cosmetic touch-ups. Being a little more flexible in these areas can deepen the pool of properties to choose from and allow you to outbid other buyers.
• Act swiftly but thoughtfully
In a competitive market, properties can attract multiple offers within a short period.
This means you have to act fast and be prepared to sign a contract very quickly. If you go away to think about things, you may miss out. If possible, ask if you can put in an offer before auction day; the seller may decide they are happy with it and take the deal.
• Be flexible with terms
When conditions are in their favour, sellers can afford to be choosy.
Being flexible with the sale agreement can make your offer more appealing. Consider accepting a shorter or longer settlement period, handing over a larger deposit, or being prepared to get rid of rubbish around the property. These could all mean more to the seller than a few extra thousand dollars.
• Avoid making low offers
When it’s a buyer’s market, you can afford to put in a low offer and see how the seller responds. In a seller’s market, while you are trying to negotiate, you may have someone come in to trump your offer completely and win the home.
If you do want to put in a low offer, talk to the agent about how much interest there has been in the property. It may have been on the market for a while; this could be a hint that others have overlooked it.
• Get to know local real estate agents
Real estate agents are your friends, even in a seller’s market. Their objective is to achieve a swift sale and a great price so if they know you are purchase-ready and have a great budget, they may offer you a preview of a home before it is advertised publicly.
An agent can also guide you to make an offer that will be accepted. Stay and have a quick chat when you come to see a house, and let them know what you are looking for. The more they know about you, the better placed they will be to help you secure a home.
Ready to buy a home? Contact me today at teresa@teresaberger.com.au.
