Securing a property, especially in a competitive real estate market, requires being proactive and organised in your approach. There are baseline items you need to follow to make sure you don’t spend your weeknights and weekends chasing property ghosts so you can increase your chances of securing the property you really want. The following tips will help to make sure you don’t go weeks, months, or even years without any success.
1. Set a clear brief - Determine your needs and preferences for the property, such as location, size, amenities, and budget. Having clear criteria will help you quickly assess whether a property fits your requirements.
2. Stay informed - Monitor real estate listings regularly, sign up for alerts, and follow reputable real estate websites and social media. Being aware of new properties as soon as they are listed will give you an advantage.
3. Monitor sales- Being aware of sold properties within your brief criteria will help you understand actual market value. This is key to ensure you are searching within your means. Judging suitability based on listed guide may not always be the most accurate way to determine whether your expectations are realistic (see point 4 below).
4. Don’t trust price guides – The reason you should base your search on recent sales instead of guides is that price guides will generally be quoted at the low end of a 10% range - e.g. a guide of $1.5 million actually means $1.5 million - $1.65 million ($1.5 million x 10%). Additionally, guides can often be too high or too low relative to what the market might actually pay (and at no fault of the sales agent, as markets can shift quickly).
5. Get pre-approved for a mortgage - Before you start your property search, obtain a pre-approval letter from a lender. This will demonstrate to sellers that you are a serious buyer and can afford the property.
6. Act quickly - In a competitive market, delay can cost you the property you want. If you find a property that meets your criteria, schedule an inspection as soon as possible.
7. Be flexible - Be open to compromise, especially if you're in a highly competitive market. Consider properties that may not tick all your boxes but have the potential to be a good investment or can be modified to meet your needs.
8. Make a competitive offer - If you are interested in a property, submit a strong and competitive offer. Quality property sells well for a reason and you should not be looking to just get a bargain, you should be looking to buy a quality asset at a fair and reasonable price.
9. Avoid lowballing - In a competitive market, submitting an excessively low offer might lead to the seller rejecting your offer outright, or might even offend the vendor which could lead to you missing out on the property. We are aware of very specific examples where buyers have mucked vendors around and the sales agent has subsequently been instructed to take lower offers and cease dealing with that particular buyer!
10. Be prepared to negotiate - Be prepared for potential negotiations with the seller or competing buyers. Be flexible and willing to work through issues that arise during the buying process. This can centre around items other than price such as contract clauses, settlement periods, or inclusions.
11. Stay positive and patient - Real estate transactions can be unpredictable and take time. Stay positive and patient throughout the process, and don't get discouraged if you miss out on one property. There will be other opportunities – the perfect property is always just around the corner!
12. Work with a buyer’s agent - Enlist the services of a reputable buyer’s agent who can manage all of the above for you (with exception of lending). A good BA will keep you informed about new listings, show you properties promptly, offer valuable insights and strategy, provide market and area expertise, and negotiate on your behalf.
Remember, securing the right property requires a combination of preparation, speed, and flexibility. Working with a knowledgeable buyer’s agent can significantly increase your chances of not missing out on a property that meets your needs as well as reduce your time, stress and save you money in the process.
