By Rich Harvey, CEO & Founder, propertybuyer.com.au
In a market that’s as hot and competitive as this, it’s imperative for buyers to be ready and raring to go when a great prospect presents itself.
But how do you get yourself in starting position? How can you be ready to act swiftly when we’re talking about a major and life-changing purchase?
Great homes and terrific prices go to those who have a head-start. They’re poised to take advantage. They’ve been training for this. At a moment’s notice, they’re able to swoop in.
Here’s my tips for ensuring you can act fast when opportunity strikes.
Schedule a meeting with yourself
Working with prospective purchasers is my job. I talk to them day in, day out about their real estate goals. But even some of the most seasoned buyers who have been through the process countless times can occasionally lose sight of what it is they want in a home. It’s understandable. There’s a lot at stake and plenty to consider. There are multiple suburbs and dwelling types to prioritise. Budgets also complicate things further.
That’s why it’s important to sit down with yourself and have a good, long conversation about what it is you want. It might be that a standalone dwelling is a must, or perhaps you’re open to a townhouse, but only if it has a bit of a yard. Maybe you want simple and low maintenance. Perhaps a bit of a fixer-upper doesn’t scare you off. It could be that you’re planning on having kids at some stage in the future, or your children are about to fly the nest, both of which can dictate what you look at.
It's crucial to be really clear about your needs and wants, so that you don’t waste your time kissing a long line of frogs before hopefully finding one that turns out to be a prince. It also means you’ll be able to quickly spot something that fits the bill and act at a rapid pace.
Make like a punter
If you know someone who loves to bet on horses, you’ll know how meticulous they are with their research.
A serious punter will have researched the nitty gritty about the breeders, the trainers and the jockeys attached to every single horse that’s running. They’ll know the animal’s pedigree and its history. They’ll know their previous form inside and out.
Put yourself in a punter’s mindset and treat your real estate hunt in the same way.
Get to know all the recent previous sales in a location that appeals to you. If it was selling via auction, what was the buyer interest like leading up to the event? Did it sell prior to auction or under the hammer? What was interest on auction day like?
You won’t just learn how much homes are selling for, but also under what conditions. Are things particularly hot, meaning you’ll have to be extra competitive, or is it slow, meaning you might have an edge over the seller? Are certain agents especially creative with their guide prices, meaning you could wind up wasting your time on something that’s not really in your budget range? What types of properties sell well, and which tend to linger?
Making yourself an expert in a local area will give you an advantage over other buyers – not just because you know the value of its real estate, but you’ll learn how to quickly spot an opportunity that’s particularly good and worth chasing hard.
Get all your ducks in a row
It seems obvious in hindsight, but something that a lot of would-be buyers leave until the last minute is finance when they should have tackled it well before they began their house hunt.
You might be confident that you have your fiscal bearings, with a solid idea of what you can spend, but at the end of the day, the final decision rests firmly with the banker. You might be sound, but conditions in the market, internal lending targets or regulatory pressures could necessitate a more conservative approach from your lender. The last thing you want is to be left in the dark.
Get your pre-approval sorted nice and early so you know exactly how much you’ve got to spend – and when to stop bidding. It also makes the finance process after signing the contract smoother and quicker.
Be aware that pre-approvals also lapse. If you got it several months back, chances are you’ll need to do it again.
Another bit of preparation that can put you in a prime position to act is to tick as many boxes as you can before you’re in a room with your competitors.
If you’re active in the market right now, chances are you spend your Sunday with dozens of other people inside a home that many of them – and you – want. When it’s clear there’ll be decent interest, there’s a mad scramble to review the contract and check out the building and pest inspection reports.
If you have a really good understand of what it is you want, then you should be able to quickly identify whether a listing will stack up. Let’s say you come across a home that’s just been listed and it seems, on paper (or screen), to measure up to about 75 per cent of your needs and wants. Why wait until after the Saturday inspection to look over the documentation?
Many agents organise and provide property reports for free, or for a nominal fee via a third party, so it could be worth ringing the agent to get a copy before Saturday. Then you’ll have a few extra days compared to your competitors in which to see if everything looks clear.
Then, if you love the place come the weekend, you can act immediately.
Network, network, network
Talk to the agents. Sure, they’re working for the other side and their job is to get the best price possible, so you don’t want to reveal too many of your cards.
But if an agent knows you’re a serious buyer, has an indication of what you want – and what you don’t want – and roughly what your price range is, they can often give you advanced notice that something is about to hit the market.
That head start could be the difference between success and disappointment.
If you know the area you want to be shopping in, start researching agents now and get in touch with them. It’s not just one email or phone call either. Agents hear from dozens of prospective buyers each day. Stay in regular contact so you’re top of mind when opportunities present themselves.
Enlist an expert
The things I’ve just described, which are only a few clever ways of getting ahead of the competition, involve a lot of time and effort.
That’s why an experienced buyer’s agent is worth their weight in gold. They take all the hard work and stress out of the process by working with you to understand your goals and then going out to find you homes that fit the bill.
They’re networkers at heart, so they have all the contacts to be able to nab those deals as soon as they list – as well as get access to off-market opportunities that you’ll never see on your own. Then, they have the skills and know-how to negotiate the purchase on your behalf, getting you the best possible price in the process.
Buying is stressful at the best of times, let alone in a hot and tight market. A buyer’s agent is the advantage you need to take care of the entire deal, from start to finish.
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