When prices start rising and sellers start making extreme demands, it’s a sign that buyers are motivated to snap up housing inventory as quickly as it is introduced.
A competitive property market can be intimidating to many buyers, but there’s no need for anyone to let the fear scare them away.
Here’s a look at the best ways for you to handle the competition in the Sydney property market.
Wanting a home and buying a home are two entirely different things. If you’re not pre-approved, it shows the seller that you’re at the beginning of your journey and are likely not in a position to transact quickly and confidently.
A pre-approval is an in-depth process where a lender does their due diligence about everything from your income to your debts. Sales fall through more than you might think, which is why a pre-approval can be critical to helping you stand out from other bidders — even if you aren’t the highest one.
Check out our guide on mortgage pre-approvals.
The advice you get during the home buying process will have a lot to do with how much you pay. If you want to maximise your savings, the right mortgage products can help.
The broker you choose should not only have an excellent reputation, but also direct expertise in your preferred locations. This allows you to sidestep the most common pitfalls of these transactions.
A competitive market takes away the luxury of time. If you see a home you like, you won’t have that long to think about it.
That’s why it’s so important to know what you need before you start looking. Too many people will make allowances in a competitive market because they feel rushed. For instance, they may buy a home that needs a significant amount of work without the expertise or finances to take on that kind of project.
Other home buyers may also overpay after getting caught up with their emotions and the sudden heat of the moment, only to find out too late that they can’t borrow enough from the bank. To bridge the gap, they’ll need to turn to friends and family members, incurring more loans and financial obligations along the way.
We recommend looking at homes in your area at least a few months before you get ready to buy. If you have questions about what works best for your budget, Shore Financial’s financial experts can help you narrow it all down.
If you really want to stand out in this market, you’re going to need more than online research to do it. The most popular real estate sites don’t always have the most up-to-date data and may continue to list properties that were either recently sold or pulled off the market.
Partnering with a local agent is the best way to get immediate notifications when a property is available. The faster you can get in on the action, the more likely you are to be considered. This is not just because some sellers are in a serious hurry to accept an offer, but because being the first can be the best way to stand out. Just make sure you know how high you’re willing to go if the bidding wars heat up.
Auctions don’t always take place if the seller decides to accept an offer before the event. If you go this route, you’ll need to schedule an inspection immediately in case of acceptance. This is the time to be as aggressive as possible, so the seller is tempted to skip the auction entirely.
Having a good agent can be a gateway into the process. They can tell you more about what the seller is looking for. For instance, some sellers want to sell their home to a family. Others will want buyers who waive as many contingencies as possible. Knowing this information beforehand can be pivotal.
A motivated seller refers to anyone ready to close on their home. Whether they’re being promoted or in the middle of a divorce, getting a handle on the situation can make it easier to know how and what to offer.
A good agent can help buyers understand if and when they need to waive contingencies and which information to put upfront. For instance, if the seller is having a difficult time deciding where to move after they sell, a buyer might highlight they’re willing to do a long rent back. It’s these kinds of perks that can help a person stand out.
A buyer’s agent is an individual or company that will purchase a home on your behalf. The idea is to find a property expert with the knowledge and negotiating experience to secure the best possible deal. This option can open a buyer up to off-market properties (ones that aren’t advertised online), while simultaneously saving clients hours of wasted time house hunting.
Even the most competitive markets have more opportunities than you might think. It all comes down to knowing the landscape.
Shore Financial is the #1 independent brokerage in Australia because we coach our clients to find and implement the best possible solutions.
If you want to learn more about how we go the extra mile for our clients and what makes us so different from our competitors, contact us today.