A recent Financial Review article details a recent auction night where the auction room was packed so full that people were occupying the street outside the auction room! Auction clearance rates in Sydney's Eastern Suburbs near 100%, and as many as 50% properties sell prior to auction or off-market.
So how is a property buyer to survive in this market?
The sorts of complaints I hear every day are:
- Turning up to open homes, only to find that the vendor already has a buyer in mind - but is offering one final open home just in case they can better the offer
- Homes going for much more than the sales agent indicated
- Needing to be quick - almost a sense of not having time to adequately and accurately evaluate the home before it is bought - by someone else
- Not knowing of all the properties that eventually become sold
- High prices
- lack of affordability
- All that's "left" on the market is the "not-so-nice" homes; all the good ones are snapped up
What tips can I share with readers to assist?
- Be prepared: have your finance ready and also a deposit. If you don't have pre-approval and a deposit, you're not in a position to buy. It's like walking into a shop to buy something with no money in your wallet (and no plastic). Get your finances sorted and a deposit - and agents will take you seriously.
- Know what you want: this saves you time inspecting and researching properties that are not going to be suitable for you.
- Match what you are seeking with what is available in the market: both in the suburbs you're looking at and your price range.
- Be flexible and adjust to what is available in your chosen suburbs - or choose other areas that offer what you're after in your price range - or, do what many are now doing: buy an investment property that you can afford, while you rent where you want to live
- Be decisive. once you've found the home you want to buy understand that other people will probably also want to buy it.
If you need a hand, contact me. I offer flexible and affordable property buying options designed with every-day home buyers and investors in mind.