By Rich Harvey, CEO & Founder, propertybuyer.com.au
There’s truism in real estate that’s never been more poignant than right now – it’s that you buy back into the market you’ve just sold in.
And so, while it’s a pretty great time to be a vendor, with record high demand and booming prices, it’s not ideal to be out there as a buyer.
Competition is extremely tight. Most people have a serious case of FOMO and are fighting with each other over almost anything that hits the market. There’s a scarcity of listings, meaning there isn’t much to choose from, adding more upward pressure on prices.
Just as quickly as something hits the market, it’s gone. Trying to navigate the current climate isn’t fun, to say the least.
Many vendors are worried that if they list and sell their current home now, they won’t be able to find their next one in such a short time frame. Timing it just right is very tricky.
If you’ve experienced this before during past boom periods, you’ve probably been reassured by the agent selling your home that they’ll help you find your next place to buy.
After all, they’re working within the heated market. They know conditions better than anyone. Given they’re handling the sale of your place, surely, they’re well suited to quickly get you into something new.
While their intentions may be pure, the ability to follow through on their promises might hit some snags. They probably won’t be able to spend a huge amount of time searching for a place for the vendor, given how busy they are already with other properties and a horde of eager buyers. After all, they are specialists at selling, not buying. The best you can reasonably expect is to be shown the listings they’ve got on their books.
It’s not their fault. This is just the way things are in a boom – way more buyers than properties make conditions really fast-moving, and it’s tough to keep up.
The only option for many vendors is to sit and wait, hoping they can time their movements just right to be able to capitalise on strong momentum before it begins to plateau, leaving themselves enough time to buy something else and hopefully have the two settlement dates be close enough to each other.
You’re gambling on being able to spot very subtle changes in market demand, that’s enough to make a difference to your search but not significant enough to impact your chances of selling for the price you want.
Don't leave it too late and get priced out of the market.
I have several friends that sold their properties at what they thought was a good price at the time around 12 to 18 months ago but have since been sitting on the sidelines waiting for the ideal property to come up. However, the lack of stock has meant a vastly reduced number of choices for their next home. During this period of waiting, they have seen the value of the type of property they want to buy rise between $500,000 to $800,000 more than they were expecting to pay. How long does it take to save up that kind of money? For some it's a lifetime!
That's why being out of the market for too long in a period where the market is rising rapidly is dicing with danger.
I've also spoken to several other people who think that the property market is overheated and it's going to dramatically drop…. But even if it were to drop back a few percentage points it will definitely not go back to pre-covid price levels. The market drivers and trends are fully entrenched and I expect prices will continue to rise solidly for the next 18 months till the end of 2022 or beyond.
How do you possibly make that call, short of being either a property economist, a market genius or having a crystal ball at your disposal? There’s a much easier way.
Enlisting the services of a buyers' agent gives you an inside edge in a competitive market, unlocking access to a wealth of knowledge and live experienced to make your property goals a reality.
A buyers' agent works with their clients to identify their wants, needs and budget, devising a criteria for their next home and a search area. They then get to work, scouring the market to find potential properties that fit the bill for consideration.
They don’t just hit those popular real estate listing websites, though. They tap their extensive networks of property experts, realtors, vendors and other contacts to identify potential deals that go well beyond what’s ‘on the market’.
This includes off-market deals. These are opportunities that never make it to those websites or the front window of a real estate agency. They’re properties traded quietly between two parties, away from the glare of open homes and the noise of auctions, removing the heat and the urgency, allowing vendor and buyer to calmy nut out a deal and exchange a contract.
It goes without saying, off-market properties are a potential goldmine for buyers – especially those who’re in the process of selling and want a great new home without the fuss and frazzle.
Regardless the type of opportunity, a buyer’s agent can help fast-track the purchase process.
They work on your behalf to do all of the heavy lifting, from the gruelling search through to negotiating with the vendor or their agent to get a deal done for the best possible price.
They work on the ground day in, day out and get to know individual areas and what makes them tick. Their expertise, as well as years of experience finalising hundreds, if not thousands of deals, means a buyers’ agent knows better than most if a property is priced at the right level at any given time in the market cycle.
Their intimate knowledge of real estate, coupled with their commitment to knowing what you need and want in your next home, means they can cut through the mayhem to unearth gems quickly.
And the good news is that new property listing volumes are beginning to rise, meaning there’s more choice trickling through.
It’s a good time to sell and, with the help of a buyers’ agent, a great time to buy your next home.
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