This time of the year is tremendously auspicious for many. Coinciding Ramadan, Orthodox Easter and Mother’s Day shopping malls are definitely crowded with people picking up merchandise at Sale prices. Where Buyers have the upper hand in retail it is not quite the same in the world of Real Estate.
Let’s see what this month has on offer for Buyers and Vendors.
The market still being a Vendor’s market prices are more than ever unpredictable making it extremely hard for anyone to prepare for an auction with a price in mind.
With First Home Builder Grants being extended is it really the FHBs that are driving the market? We don’t think so. FHBs rely on lenders and borrowing limitations to purchase property whether at auction or private sale. Therefore buyers ready to pay above market rate and beyond valuation amounts are people not depending on lender’s mercy.
So who are these people?
They are probably cash-rich or already own several properties with considerable amount of equity or have access to overseas funds.
Now for an average buyer this is a tough market to compete in, so what do these buyers do? Well, if you want to cut out competition, what is the first thing you do?
Either look for something nobody else is looking for or look in areas nobody else is looking in?
Ideally off-market? Absolutely. But how does a common man find off-market properties in current market conditions?
Easy answer is do a lot of research!
Review data on good growth suburbs that are affordable and comparable to your needs are. Look at properties that have not been sold in years and simply knock on the owner’s door to have a conversation and subtly ask, if they are keen on selling?
Now nobody will sell their home to you first time they see you at their door. So how do you go about this? Either engage a Buyer’s Advocate who knows the process and is skilled in this matter or establish rapport with the Owner. Whilst you do that, evaluate the Vendor’s current situation and potential motivation to sell. Simultaneously build your own profile in such a way that gives you credibility and security for being a strong qualified buyer.
Let’s face it, we do not like to pay thousands of dollars to Real Estate Agents to sell our home, especially, if they can’t achieve the price we want!
If a buyer is ready to pay the price without involving an agent, then both buyer and vendor win!
This is an ideal scenario, but it is the simplest way to buy a home.
People spend hours, weeks, months of shopping around before buying a car, then does buying a home not deserve the same if not more of your time, effort and attention?
Why do buyers not seek professional advise for the most expensive purchase and investment of their life? A question that still has not been answered.