Buying a property in a red-hot market can be quite daunting and intense for buyers. You may find that the sizable deposit you have saved up no longer has the buying power that it did a few months ago. After crunching the numbers, you are left scratching your head – you may be wondering how you’re going to make regular mortgage payments that may have previously been considered a stretch.
Hope is not gone! Opportunities in the property market will always be there. You just have to be more tactical with your approach and conduct research.
Previously, having a mortgage pre-approval would win the day. You will now have to be more strategic with your decision making and take the time to find exactly what you want and can afford.
1. Work with local Real Estate agents
Working with local Real Estate agents, rather than waiting for internet listings to pop up, can pay off. As Real Estate agents, our job is to find you that perfect home. If you are a serious buyer, get in touch with us and let us know the type of property you are looking for. If you express interest in our properties, we will send you new listings as soon as they come to market and before they are more broadly advertised. And who knows, you might even be able to secure a property before it even goes on the market.
2. Arrange your finances
If you have not already, it is non-negotiable that you have your finances arranged. During a hot market, property waits for no buyer. Ensure you have stamp duty discounts and any grants you are eligible for arranged. These are a blessing and a curse. They boost your capacity to buy, but also contribute to the strength of the market.
3. Negotiation strategy
Have a negotiating strategy in mind. When the opportunity arises for the right property, you are prepared. Price discounts are almost non-existent right now, averaging just 2.7% across all capital cities. A low-ball bid will take you off the board – avoid that.
Many buyers will win a property by offering a shortened or extended exchange period to suit the seller. So, try to be flexible and creative in your approach.
4. Research
It’s also really important to properly understand the actual state of the market, you can’t always trust what you see on TV or online, don’t get sent into a panic based on one headline. Do your own research. Real estate isn’t one market, but thousands of micro-markets. Rather than making assumptions, get in contact with us to chat about your local suburb trends and prices. Our door is always open.
Finally, do not be put off by the strength of the market. There is a lot of academic research about the folly of trying to time market slumps and recoveries. If the time is right for you to buy a home, take your time, be diligent and you’ll find your dream home.
