The spring months are the busiest on the property calendar, so just like your favourite footy stars, preparation is the key to ensure that you don’t let emotions and a strong desire to buy see you overpay for that dream home. If you’re in the market for a new home or investment property this spring, then there are 5 key tips you need to follow to ensure you finish on top this auction season.
Do your research
With the world wide web at your fingertips, there’s no reason why you shouldn’t know the area and what you’re in for price wise. Resources websites like On The House, realestate.com.au and realestateview.com.au will all give you a relatively sound idea of the local area prices, whilst a well-placed phone call to a knowledgeable and ethical local real estate agent will help immensely. Bank websites and your mortgage broker should also have some handy tips.
Secure your home with favourable terms
After you’ve done (all) your research and found out why the vendor is selling – you’re in a good position to negotiate and get the price you want. A few options include: The Section 27 deposit release (where Victorian vendors can access deposit funds early to secure your home), short settlement periods (vendors usually love this) and/or a rent-free period. If you’re really on form, you can see if the owner will include the furniture… for a price.
Have a three-step bidding plan
Before you turn up on auction day, you need to know your limits and how to play to your strengths. Consider a three step plan with your three price options. 1. The Jackpot: this is when you know you’ve really scored and you’ve secured a great property below market price. 2. Great Value: this is when you’ve happily hit your happy price and you know you’re not breaking the bank. 3. Ouch! This price is the one that hurts the hip-pocket at the time, but 10 years down the track, you’ll be glad you did.
Be first in, best dressed
If you know you love the property, or it will be an amazing investment – be bold. Quite often the first bidder on the day is the one left standing at the end. If you’re comfortable with the price and it’s your dream home, for a psychological edge on the competition: get amongst it early.
Keep your cool
Most of the time, buying a property is an emotional game, but you can’t afford to let feelings get in the way of what you can and can’t afford – you won’t be thanking yourself later. If you’ve got a friend who’s known for their poker-face – bring them along or even consider hiring a property advocate – sensible choices in the short-term will make for a happier long-term property plan.
Now you’re equipped with the go-to tips for your next property purchase, remember confidence is key and always know your limit.
Let us know if you have any tips or tricks that you’d like to share.