If I was a buyer, what would I do?
Warren Buffett once said it is wise to be “fearful when others are greedy, and greedy when others are fearful.” This line of thinking applies to the property market just as much as it does to the stock market.
The best time to secure a good deal on a home is to buy one when the market has slowed. When prices are falling and demand is low.
But that means buying when most people are not, and it takes courage to zig when others are zagging. To go against the herd and take action while others are fearful.
The common approach in the current market is to sit back on the sidelines and wait for things to improve. But if you like having lots of houses to choose from, making offers with less competition, and driving a hard bargain, then now is the time to get stuck in.
Tips for success in a buyer's market
1. Be active.
Look at as many houses as possible in your target area. After a few weeks, you'll start to get an educated feel on price and you will start to recognise opportunities (eg. fundamentally good houses at an attractive price level).
2. Know the recent sales in your target area.
Follow up with real estate agents to find out what houses you have looked at have sold for. This information is worth its weight in gold.
3. Tell us what you are looking for.
Some of the best buying opportunities don't reach the open market or can be easily missed. Let us know your criteria so we can inform you when we find a property that suits your needs and budget.
4. Be ready to take action.
The best deals are often secured when buyers solve problems for vendors. Convenience and speed are valuable. If you can make quick turnaround offers with short finance conditions, you'll increase your chances of securing a property at an attractive price.
5. Regularly review all houses for sale.
It's a rookie mistake to only look at new properties coming up for sale each week. Some of the best deals come about when an owner lowers their price after 60 or 90 days on the market. Make it a habit to regularly go through all houses for sale in your target area and price range so you don't miss these golden opportunities.
6. House to sell? No worries!
In this market, you can still make compelling offers even if you have a house to sell. In a hot market, it's near impossible, but right now you can make offers subject to the sale of your existing home, avoiding the need to move twice, or risk not finding a home you absolutely love.
7. You've got plenty of time.
Make the most of the current market conditions by taking your time as a buyer. Learn the market and grab a home that ticks most of the boxes. Focus on good fundamentals: sun, access, amenities, potential, and solid construction materials.
Now is the time
The long-term success of any property investment, whether it's a rental or a home to live in, comes down to securing a property that suits your needs. And it's easier to do that when you can take your time, learn the market and make well-considered real estate decisions.
We are here to help
Let Mulholland Property know your criteria and we'll work with you to find a home that you'll love living in for years to come.