In today’s hot property market, some buyers will inevitably miss out on a property to another buyer, and we know how heartbreaking it is when this happens. The potential buyer has had their mind set on a property, may have even started the road on building and pest inspections, pre-approved finance and preparing to make an offer or bid.
All of a sudden another offer is made on the same property. Our potential buyer is caught off guard and waivers, and the house sells to the other party. Alternatively, an auction sees the home go to a higher bidder. While this scenario is more transparent it still leaves a buyer feeling disappointed.
In this buoyant real estate market, competition is hot for the best properties.
Our top 5 tips:
There is no magic wand to this issue, but there are steps a buyer can take to ensure you are prepared:
1. If you missed out on one property, this means you are ready to move quickly on the next.
As awful as the feeling of missing out can be, there will be another property and next time you will have all your ducks in a row. You will have engaged with your bank manager or mortgage broker already; you may even have a solicitor on hand. You also know the market and may have developed relationships with agents who keep you informed of what is coming up.
2. You may have sold your existing property already which puts you in an even better position to buy.
You have your deposit; the agents know you are ready. You will be hard to beat as you will most likely be able to waive a long settlement period, and can commit without cooling off periods. A lot of owners are always keen for a quick sale and shorter settlement period, especially if they have already bought their next home. The quicker you can settle, the more likely you are to get the property. There is a risk involved to this approach so make sure you have conducted due diligence and are comfortable signing the contract.
3. Get to know even more about the market.
You missed out and it hurts. We get it, and we share your disappointment. Real estate is a highly emotional industry to work in, and we get to share the highs and the lows. Our best advice is to stay in the market. By educating yourself, keeping an eye out for new listings and being ready to move you will still find the perfect home for you.
4. Do not hesitate to ask for assistance.
We are here to help you. Even if it means giving you advice about a home that is listed with another agency. Providing outstanding customer service is what our business is all about, even if it doesn’t immediately benefit us.
Market knowledge and a clear understanding of your needs will see us finding you the property you are looking for. We also have a great network of finance professionals, solicitors, and also good relationships with other agents that are active in the market. Finding a property can be easier if you have a network around you to help.
5. There is no time like the present.
Interest rates are low, which makes repayments lower and home loans more affordable. If history is an indicator of the future, it is likely property prices will go up over time, so there is no better time to purchase a property that right now, so you can capitalise on future market growth.
By doing your homework, looking at underlying factors such as population growth, investment in infrastructure and good bones in your property, you may be one step closer to your next property opportunity.
About the authors:
Andrew and Renee McKiernan.
Andrew and Renee McKiernan are a husband and wife real estate team at First National Newcastle City. They specialise in family homes in the Newcastle and Lake Macquarie region. For questions about this article or homes they may be able to help you with please do not hesitate to make contact with them here.