The property market is hot at the moment, and we are in a seller’s market for most cities around the country.
After a period where house prices stagnated and transactions declined, the power has moved from buyers to sellers.
In this type of market, it’s vital that buyers change their approach to ensure they can still secure the home they want.
Here are our top recommendations on how to compete in a seller's market.
Be Proactive
It goes without saying that in a seller’s market, buyers need to be proactive. Buyers must know what they want, and when it comes up, they must act quickly.
Buyers should have researched the neighbourhood they are looking to buy into, so when a property comes up for sale, they already know its real value.
If you’re unsure, a good approach is to talk to several of the main agents in your suburb. Agents are on the front line and know exactly what the buyers are chasing and what the sellers think.
Get Pre-Approved
In a seller’s market, buyers often compete against several different buyers.
Sometimes, price isn’t the only determining factor in getting a deal over the line. There are many instances when the vendor also wants some degree of certainty that a transaction will go through if your offer is accepted.
Cash offers are the most powerful, but few buyers will offer those terms. Having a pre-approval in place so you can settle quickly is probably the next best thing in the eyes of a vendor.
Getting pre-approved is relatively simple these days, and on top of making your offer stronger, it will also clarify exactly how much you can spend.
Make a Strong Offer
When property markets rise, you must come in early with your best offer. There’s often not a lot of room for negotiation in a seller’s market, and if there are multiple bidders, it is usually to the buyer's detriment.
By bidding strong and early, you might be able to knock out the competition and take the property off the market.
It’s also worth noting that markets can change month by month. What was a competitive offer three months ago, when you first started looking, might not cut it anymore.
Get Personal
While many people like to look through real estate listings online, if you’re serious about buying a property in a competitive market, it might be worth talking directly to the major agents in your area.
Agents usually have lists of active buyers with whom they share their upcoming listings.
Contact the agents and tell them what you’re looking for. You might find yourself in a situation where you can purchase a property through an agent before anyone else even gets to hear about it.