Monday 18 Jun 2018
Don’t pay too much
No one wants to pay too much for anything, this is a universally accepted truth.
In housing, with the market slowing down in Sydney and in Melbourne, this has now never been more true.
While in the past, low supply and high demand has seen paying more viewed as a sometimes necessary evil, a lean towards ensuring you don’t pay more than you must is now building as investor competition lessens and supply grows.
In the media of late, we have seen several experts coin this phenomenon as FOOP – fear of overpaying – replacing the more universally known FOMO, or fear of missing out.
So, how do you make sure that you don’t pay too much? Mint Property Agents recommends the following:
Know the value of what you are looking at – do your research, only then can you know if what you are offering to pay for a property is accurate. Walk the neighbourhoods, attend auctions and open houses of properties that are the type that you want to buy (think location, block size, frontage, street quality, age, amenities and so on), check out the agent’s comparable sales, and take into account the maths (price per square metre) as well as subjective items like views and proximity to landmarks. Also remember to consider land value and length of time on the market.
Hold onto your power – in our experience, agents only sell before going to auction if they are in a weak position with not a lot of interest. Don’t give away your bargaining power in this case. However, if you think they are willing to accept less than what the property is worth pre-auction, then go for it!
Keep a clear head – emotions can run high during the house buying process but try as hard as you can to keep a rational head when it comes to reviewing your options and making offers. Keep your cards close to your chest and put yourself in the best position possible to do a deal that benefits you.
Make sure it is right for you – again, emotions or even FOMO can see you make an unwise decision. Take time to consider your options and all of the angles before getting into bidding, it is an expensive mistake after all to find yourself in the wrong home for you!
Keep an eye on market changers – While the market might be levelling out now and it is our expectation that this should continue for a while, all it takes is something like an interest rate rise for it to be disrupted. Keep an eye on what is happening to really know the market you are working within and use your knowledge to your advantage.
Want more help?
Mint Property Agents is committed to providing outstanding services encompassing all matters involving real estate to the inner West community. For an obligation-free chat as to how we can help you, contact us today.