24 May How to Buy a House in a Seller’s Market
You’ve probably noticed that the real estate market in Australia is currently ‘running hot’. This means it’s a sellers’ market, with many buyers rushing to secure a new property and supply that’s struggling to keep up with the demand.
So what does it mean for buyers in a ‘hot market’? How do they go about securing their dream home or investment? Well, its harder to lock in a deal, that’s for sure, and you’re certainly not going to purchase good real estate at bargain prices. In fact, you need to have super-sharp home-buying skills if you’re going to be able to move onto your next chapter in life.
We’ve put together some pointers to help real estate buyers in this hot market. Here they are for you.
Always Put Your Best Offer Forward
It’ll work in your favour to accept that you’re in a sellers’ market, and its not going to be possible to buy a home cheaply. Therefore, the best strategy is to always put your best offer forward. If its accepted, all well and good. If it’s not, you can move onto the next home and you won’t have wasted much time. It’s good to remember that if you come in with a lowball offer, you’ll get out bid by someone more in tune with the market conditions.
Get Mortgage Preapproval
In a hot market, things sell fast. They sell like hot cakes, so you don’t want to be caught out trying to organise mortgage approval after you’ve put an offer in. There are too many buyers with finance at the ready who will take your dream home out from under your nose.
When you have mortgage preapproval, your finances are prepared and verified and you know exactly how much you have to work with. You’re able to move on your dream home and sellers will be more likely to look at your offer.
Don’t Put all Your Eggs in One Basket
It’s best not to get fixated on one house. Rather look at a number of properties, without getting your hopes too high for any one in particular. This helps avoid massive disappointment can save you from making a poor decision out of desperation. Spread your interest, find a number of homes that fit your criteria and try not to fall in love to heavily with a property that you haven’t yet secured.
Give Yourself Room to Bid Upwards
Look for homes that fall under what your budget is. Remember in a hot real estate market you’re going to have multiple people interested in the same property, and they’re all going to be trying to outbid each other. If you only look at homes that exactly meet your budget, you won’t have any room to improve your bid if another party outbids you.
Check out Other Neighbourhoods
It’s easy to get caught up in the hype of a particular part of town. Sometimes an area becomes ‘the’ place to live, creating a buzz amongst buyers who then don’t look anywhere else. The best thing to do is identify what it is that makes this area great, then look for similar suburbs with the same characteristics. Look at schools, shops, parks and amenities in the area that your ideal home would be in, then look at other suburbs that meet the same criteria. You may just be surprised at what you overlooked and could end up finding your dream home without entering a desperate bidding war.
You’re probably going to miss out on a number of homes. Be prepared for this and don’t let it drive you into a situation where you bid out of desperation. You may end up with a home that’s more expensive than you can afford, or you may give up on the search completely. Control your frustrations and focus on having your finances ready for when the right house comes along. Don’t be discouraged.
If you have any questions about buying or selling real estate in the current market, please get in touch with Henry. He’d love to answer your questions about Brisbane property and help you formulate strategies for buying homes in this hot real estate market.