Property values have soared by 4 percent in only 3 months, a record rate of growth since a decade ago. With this influx of serious home buyers into the market, it can be easy to get lost in the crowd.
The Commonwealth Bank has revealed in the latest household spending index that home buying intentions are pouring into the market, indicative of current house prices continuing and consumption set to grow. With this influx of serious home buyers into the market, it can be easy to get lost in the crowd.
Here are a few tips on how to not lose your cool or get left behind when things get hectic at buying time.
HOW TO STAND OUT FROM THE CROWD AT PURCHASE TIME
01. SEE FOR YOURSELF
Don't just rely on property photography!
Spaces can be made to look larger and house proportions can become confusing. Always be sure to physically inspect the home, so you can get a sense of the property and whether it suits your needs and lifestyle.
02. AVOID THE URGENCY TRAP
Another tip to do with open inspections! More often than not, a property will have only one or two open times, more commonly over the weekend, which means everyone interested in the property will be inspecting at the same time.
This can be extremely overwhelming if the property has quite a bit of interest. It’s always beneficial to ask the agent whether you could inspect at another time, without feeling the urgency of having to compete with other potential buyers.
03. DO YOUR HOMEWORK
The best thing you can do to prepare for buying a house is do your research. In addition to the basics and knowing what type of property your after, how many bedrooms and what area you want to be in, make friends with the numbers!
Median price is a great starting point and check the recent sales in your desired area to see whether the price and the type of property being sold stacks up.
04. FIRST IS NOT THE WORST
Don’t be afraid of making an offer! There is nothing wrong with being the first offer on a house, as waiting to see what happens can often mean new buyers emerge and the competition heats up. Also, putting in the first offer means that if someone else then offers for the property, you have the opportunity to come back at a different figure or if it is too far over budget, you get a better idea of what to expect in the market.
Don’t play games when it comes to offering! Making a low ball offer in hopes of securing a bargain rarely pays off. You don’t want to miss out on your dream home just because you thought you needed to get it for the cheapest possible price.
Are you a first home buyer? Download our First Home Buyer Booklet now.
So remember, buying a house can be an extremely stressful but ultimately super exciting time. While FOMO can attempt to drive buyers’ decision making, it pays to keep calm and block out some of the noise. Do your research and be prepared so you can feel confident come decision time.
Alex Ouwens and Nathan Casserly have a genuine passion for real estate and love to help people achieve their goals and dreams through property. Find out more about OC here.
Interested in a career at Ouwens Casserly Real Estate? Check out our opportunities here.