How to buy in a hot market
December 24, 2013 / Written by Rich Harvey
For those looking to buy a house in Australia, dealing with a hot market is the reality in many parts of the country.
Demand is high, values are rising and inventory is struggling to keep up. This is creating property hotspots in many areas throughout Australia, something all too clear to those considering property investment in Sydney.
Fortunately, there are a number of strategies that can be used to make buying in this type of environment easier.
Are you in a hot market?
The first step is determining whether or not you're buying in a hot market. Signs of a hot market include lower than normal inventory, fast-selling homes and steadily increasing property prices.
All of these criteria come together to make a market that is typically in favour of sellers, not buyers.
Gaining an edge
Luckily for prospective home buyers, employing a buyers agent can help level the playing field. Unlike real estate agents, buyers agents work exclusively on behalf of home buyers.
Not only can they assist with finding potential homes in an area, they can also help you with negotiations and bidding.
Having a qualified buyers agent in your corner will give you the edge you need to compete in a hot market.
Make yourself more desirable
With that said, there are other steps you can take to make yourself more attractive to home sellers.
Obviously price is a major factor. While you don't want to offer more for a home than you can afford to pay, keep in mind that making low-ball offers in a hot market is a great way to be ignored and skipped over.
Also avoid asking for any favours or adding complicated contingencies to the deal.
However, being pre-approved by a mortgage lender is a great way to show sellers that you're not only serious about buying, but that you have the funds for the purchase ready to go.
It's also important to keep your emotions in check and not make rash decisions just because the market is hot. Due diligence remains essential during the home buying process, and speeding things up carelessly to take advantage of a deal can end up costing you much more down the line.