Our home is our castle. A place where we experience many of the happiest moments of our lives. But sometimes, the process of buying or selling a home can give rise to some horrible experiences as well. We have all heard horror stories from family and friends about certain incidents they experienced during the process, but it really doesn’t need to be this way. Armed with the right knowledge, you can avoid the traps that most people fall into and take back control of the process – instead of it controlling you!
With more than 22 years experience as a Licensed Real Estate agent, I take much pleasure in sharing with you our Top 4 Tips on successfully buying in a seller’s market. These will include:
#1 – Planning
#2 – Choosing the right property
#3 – Negotiating with the agent
#4 – Bidding at Auction
So here goes….
Tip #1. When Buying – Planning is Key.
When you constantly come up against multiple offers, rising prices, and the disappointment that Auctions can bring, it’s critical to stay positive and more importantly to be flexible with your house hunt wish list. However, that flexibility sometime results in so many changes to your wish list that you end up feeling like you are letting the market dictate what type of home you can buy. And that’s not a great feeling. I know because I’ve been there too!
There’s a fine line to walk between being committed enough to adjust your house hunt expectations to the reality of the market and becoming disheartened or aimless in your search. One way to help manage the emotional discomfort is to invest some time documenting your intentions and vision for your next home and the life you’ll lead in it before you even hit the road.
Break the report down into 4 parts:
- Wish List
- Need List
- Want List
- Don’t Want List
The ‘Wish List’ would cover items that you would find in your dream home – have some fun with this. The ‘Need List’ would include things that are non negotiables, ie number of bedrooms and bathrooms, parking accommodation, access to transport etc. The ‘Want List’ includes all the other aspects that are important but not essential, ie proximity to walking tracks, parks, fully renovated, close to your favourite restaurant etc. Then there are those items that you definitely wouldn’t consider such as: main road position, stairs, south facing, small land size etc.
If you are purchasing with a partner, ensure they do the same. Then review and combine into a single document that both parties are happy with. It’s extremely important that all parties are on the same page before your search commences. So much time and energy can be wasted especially when one party is doing all the legwork only for the other to disapprove of the options put forward.
With this document in hand as a reference, you are now ready to commence your search. As most people tend to buy close to the area in which they already live, you may not need to do a lot of research. However, the more properties you can inspect and the more Auctions you can attend, the more knowledgeable you will become about prices in the area. Knowledge is a very powerful thing when it comes to buying and selling real estate. These days, buyers are becoming very astute and are often more informed on local selling prices than the agents!
You will start seeing the same agents time and time again at these inspections, so start building a rapport with them. Let them know that you are genuine and make sure you give them details of your requirements. The better the relationship you have with them, the more chance you will have of them calling you first when a new property is listed that meets your requirements. This is where you want to be. Yes, it does take time, however it will stand you in good stead when it comes time to negotiate.
As Buyer’s Agents, we spend considerable time with our clients during the planning stages. An intimate understanding of their needs and wants is crucial to a successful acquisition. The majority of our clients are time poor individuals who simply cannot be out week after week inspecting properties or spending much needed time to educate themselves on their local market. This is what we do. This is what we specialise in. And this is our passion.
Stay tuned for our Tip #2 on Buying in a Seller’s Market over the coming weeks. The next topic will be all about Choosing the Right Property. In the meantime, if you’re interested to find out more about how we can assist you in your property search, feel free to call us on 0411 522233 or visit www.innovativeproperty.net.au.
SPECIAL OFFER – Thank you for reading to the end of this article. As a special thank you, we’d like to offer a 20% discount off all our services until 31st December 2013. To book in a complimentary consultation, call Kathryn on 0411 522233.