If you are looking for your next home, we have our top 6 tips to help you get the best property for the best price in the current market. Current property predictions for 2021 show the market is continuing to respond positively to low interest rates. Property values are rising as more Australians are looking for a new home or to upgrade their homes while there are fewer properties on the market.
Rest assured, with our tips we can help you find your next home.
- Do your research
Once you know your price range you can start looking in the areas you like and the surrounding suburbs. Researching what is happening in the local market will help you understand how you can get ahead of the buying competition.
Talk to real estate agents about recent sales in the area and also attend local auctions. This will allow you to gauge price ranges, how quickly things are happening and how realistic your goals are.
Bonus tip: Once you’ve found a property you are interested in, you may want to engage a valuer to determine the market value of the property.
- Set a financial limit
Be honest with yourself with your upper financial limit for your current situation and stick to it. Obtaining pre-approval with your finance will ensure you know how much you can extend yourself on the mortgage for your next home. Offering above your limit will burden you with a debt you could struggle to repay.
One way to stick to your limit is to keep any emotion out of your negotiations. Even if you find a property you absolutely love, remember there will always be other properties. Give reasonable offers for the value of the property and if it’s not accepted, don’t be tempted to raise the offer above your limit just to close the deal.
- Be realistic
As well as having a financial limit to stick to in your property search, it is a good idea to think about what features you really want in your next home. There is no such thing as the “perfect” home, so, setting priorities can help you identify properties that have the features you want, in your budget. Be clear on what you are willing to sacrifice and this will help you find a home in your budget with the most important features.
- Learn the vendor’s reason for selling
It is okay to ask this question! Ask the agent plenty of questions, especially about why the vendor is selling. Have they committed elsewhere with their finance being dependent on this property’s sale? Is it an investor keen to liquidate their assets? Knowing this information can be extremely helpful during negotiations. Sometimes, a seller will take a lower price if the terms and conditions are more favourable to their own situation.
- Prepare yourself for auction
Auctions are used in order to generate the highest price for the seller by putting buyers in direct competition with each other. If the home you are planning to buy is going to auction, then spending some time understanding the psychological process that the agent will be using leading up to and during the auction will be helpful preparation.
At auction, you will be buying on a cash unconditional basis so you must have your finance pre-approved, building and pest inspections completed and have spoken to your solicitor about the contract before auction day. Remember, there is no cooling off period if you buy at auction.
With these 6 tips you will be armed and ready to buy your next home. Talk to us about the pre-approval process and finding the right loan for your situation and know you will be in the best position to make your offer on your next home.