Tips for Buyers in a Hot Market
The market in Orange right now is hot! Listings are being snapped up which is fantastic for sellers but not so great for buyers who are left feeling frustrated by the whole process as they miss out on properties.
A hot market is indicated by lower than normal inventory, fast-selling homes and steadily increasing property prices that all come together to make a market that is typically in favour of sellers, not buyers. If you are a buyer currently looking in the Orange market you will know that this is currently what we are experiencing.
We understand the frustrations of buyers in this type of market and want to reassure you that there are other steps you can take to make yourself more attractive to home sellers and hopefully gain the advantage to secure a property.
So, Buyers, here’s what we think you should consider:
Finance approval is an absolute must
One of the most important and absolutely non-negotiable things to do is make sure that you have your finance pre-approved. Talk to a mortgage broker or a bank before you start looking and get it sorted. In this type of market, you do not have the luxury of time so having this in place is a bare minimum. Being in a position where you know your budget and can make an offer without a finance clause could put you in the box seat.
Be ready to move quickly
Also, get all your ducks in a row. Time is of the essence and being able to move through the process quickly is key and so having your solicitor and building & pest inspector on standby as well as having your deposit ready so that you can act fast and get ahead of your competition are important factors.
Work with the agents
As agents we are always happy to work with buyers and it helps us to know that you’re serious and doing everything you can to secure a property. Don’t be afraid to email or phone and talk to one of our agents who can answer any questions you may have about the process.
As the selling agent we are the go-between with both sellers and buyers so please be nice and keep us in the loop on your progress so we can assist you as best we can. We understand your frustrations of trying to buy property in this market and will try and help as much as we are able!
Each Friday we email a market report to buyers showing our new listings, open homes, upcoming auctions etc. Buyers will begin to automatically receive this from us if they send email enquiries through Domain and realestate.com.au or you can call us anytime and we can add you to our database and our mailing list.
We always recommend to buyers to keep an eye on our website – www.pfisher.com.au – so that you can see all the properties offered for sale by our agency without the interference of other properties listed by other agencies as well. There are direct links to contact the listing agent from each listing making it easy to call or email.
Be informed – know the market
In our opinion, it is helpful for you as a buyer, to have an understanding of the current market. Inspect properties that interest you and be aware of comparable properties in the market currently for sale or recently sold to give you a feel for where properties sit pricewise. This will give you a good sense of the value of a property as you start thinking about what you would offer. Be aware though that it is likely you may need to pay a premium given the level of competition and interest in good properties.
Websites like Domain and realestate.com.au are helpful when looking at what’s for sale and what has recently sold.
Be proactive
Be prepared to be proactive. Once you’ve found the property you like, act fast! Don’t wait for the open house but instead call the agent and make an appointment to view ASAP and be prepared to act swiftly if the property satisfies all your criteria. Don’t be afraid to make the first offer.
Make your best offer
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 hot markets are not the right time to start a long drawn out negotiation process with a low-ball offer. You run the risk of frustrating the seller and allowing other buyers to get involved meaning you might miss out.
Putting a strong (close to your best) offer first is the best way to demonstrate that you’re a serious, decisive buyer and you’re ready to take action and hopefully, it may lower the chance of a bidding war between competing buyers.
Put your offer in writing setting out your position, avoid asking for any favours or adding complicated contingencies to the deal and try to remember that It’s 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.
It helps to be flexible on settlement if you can. Ask the seller if they need a shorter or a longer settlement to best suit their needs and be prepared to meet it. If you are one of two or three competing offers but your settlement date perfectly aligns with the owners’ requirements, then this could be your edge.
Our advice
A piece of advice that we would offer buyers in a hot market – don’t get caught up in the hype of it all. Just because you’ve missed out on a few properties previously doesn’t mean that you should lower your standards just to get into the market. Apply a very simple rule – if you wouldn’t buy the property in a balanced or quieter market then you shouldn’t buy it in a hot market either.
Need more help?
We hope that you find these tips helpful and we would love to hear from you if you have any questions or need advice on your circumstances.
Sources:
https://www.propertybuyer.com.au/blog/richs-blog/how-to-buy-in-a-hot-market
https://empowerwealth.com.au/blog/8-tips-to-buy-in-a-hot-market/
https://propertyupdate.com.au/nine-tips-buy-well-hot-market/
