With home buyers now facing strong demand, few properties to select from and intense competition, we’ve compiled a few tips from expert home buyers on how to buy in a hot property market.
Be well prepared
At the moment there is a real mix of buyers in the market, from frustrated long-term property hunters who have been searching for their dream home since last year to new entrants who placed their plans on hold during the uncertainty of last year and first homebuyers eager to buy before the market rises further. So there is a real sense of urgency amongst buyers right now meaning careful preparation is more important than ever to ensure you can make a move quickly should you find the right property. This means getting pre-approval on finance, having your deposit in your account, lining up a conveyancer or solicitor, researching online and not spending too long ‘window shopping’. If you’re serious about buying, don’t waste 6 months getting ready.
Keep a level head
Don’t get FOMO (Fear Of Missing Out). If you miss one property, there will be more and although prices are on an upward trajectory, there is no sense buying a property that doesn’t tick most of your boxes just because it’s in your price range.
Pay attention to the market
You need to have a good understanding of values in your target locations. This means keeping a close watch on sales results not just price guides and ensuring your budget matches.
If you’ve got your heart set on a certain suburb or school catchment area but find your budget doesn’t match your expectations on the house type, condition and size you’re after, you may need to adjust your expectations. Perhaps you could consider an older home that you could refresh down the track or a home that’s a little further away from the water than you would have liked.
Put your best offer forward
There’s an art to negotiation, especially in a strong market. Starting too low, just to see what happens, can result in disappointment.
Consider your ‘walk away’ price and stick to it
Don’t allow emotions to cloud your judgement. You don’t want to end up the owner of a house but also the owner of a mortgage much larger than you’d budgeted for.