If you are like most people who may be thinking of selling or buying, you’re probably wondering what’s the right thing to do in the current market?
Should you buy or should you wait?
Unless you have been living under a rock, you would be well aware that Australia is experiencing a property boom. Brisbane is seeing it’s highest prices in decades with median property prices rising by over $50,000 in just one quarter. Suburbs like Kedron, Clayfield and Wavell Heights have seen a quarterly change between 8 – 12%! With interest rates at an all-time low, the Olympics set for Brisbane causing an infrastructure boom, and interstate as well as overseas buyers wanting to relocate in the Sunshine State, it’s no wonder!
This is certainly a sellers’ market (in other words, there are many interested buyers, but the property supply is low), there are also many buyers willing to pay what they need to in order to outstrip the competition. This is creating great opportunities for Sellers, but Sellers shouldn’t depend solely on the ‘booming market’ to get you the highest price. The right real estate agent can make a huge difference in helping you to make the most of the current climate. (Read our blog here to learn more)
Despite property supply being low, the market is still full of people who genuinely want to buy (and sell). The question is – at what price?
Buyers who are slow to come to terms with the reality of the current market are not prepared and often miss out on their desired property. Buyers are always looking for value. Irrespective of the market, they want the best property available at the best price. In this sellers’ market with prices rising, it is a difficult time to buy at “good value” and yet buyers are buying like there is no tomorrow. Buyers are afraid of missing out (FOMO). Although the market will stabilise and flatline eventually (see our video blog here), it is unlikely that there is going to be a drop in property values, so these are the times when smart buyers start thinking outside of the box and buy.
So, what works for Buyers to get the edge in the current market?
- Being proactive. Ensure that you have your pre-approval prior to commencing your property search so you don’t miss out on properties while submitting your paperwork and waiting for banks or brokers to get back to you.
- Doing your research. Not just on the asking price, but also on recent sales of similar properties, so you can be clear about what you anticipate the property will sell for.
- Be known to local agents. If you’re ready to go, let agents in the area know! You won’t have a chance with off-market opportunities if agents in the area you’re looking to buy in don’t know that you are there. Get in touch, let them know your criteria and budget and ask to be contacted for off-market It’s also a good idea to be added to their mailing list so you’re one of the first to know about new listings that go to market, including being one of the first ones to inspect the property when it becomes available.
- Clark Real Estate sends out a weekly “Classifieds”, where we have gathered together some of our active buyers and prospective tenants along with their specifications on property they are searching for in Brisbane. Buyers can add themselves to this list in order to help find their ideal property.
- Look for unique properties. Look at properties with features that you could easily renovate or fix. If you can see past ugly wallpaper, dated vanities and light fittings, you may find yourself in a rather advantageous position with less competition and more room for negotiation. It’s also a good idea to see if you can reconfigure rooms to get maximum space. In the age of quick and easy Bunnings or IKEA kitchens and bathrooms, these once big-ticket renovation items can be quite quick and affordable. They will come at a price much less than buying a property that doesn’t require any work.
- Knowing your limits. Have a clear list of absolute deal-breakers and absolute necessities, so you can make a decision if the property is suitable immediately upon viewing.
- Decisive action. Be decisive by submitting a clear offer in writing after viewing the property. This will demonstrate that you are serious and it won’t leave room for the property to be snapped up while you think about it for a few days.
What doesn’t work in a booming property market?
- Waiting around for follow-up calls. In the current market, you won’t find many agents getting the chance to make their usual follow-up calls after viewings. If you have viewed a property and are serious about purchasing, you will need to make contact right away.
- Shopping at the top of your price range. Avoid looking at properties at the top of your budget. To avoid disappointment, to give yourself room to negotiate or to provide you with funds to make minor changes, it is recommended that you begin your search well below your maximum budget.
- Complicated offers. An offer subject to too many conditions will be much less attractive than a clean offer.
Although the market is very competitive right now, you can still find a great property and make a successful offer if you have the right mindset and approach
Buyers who believe they can time the market, develop a false sense that they have all the time in the world. The mentality that they can find a better deal later causes many to miss out on some great opportunities.
The real question buyers should be asking is “if prices continue to peak, is it safer to buy now?” or “has the market stabilised enough to now make a sensible purchase?”
If you want to see how we can help you achieve your property goals, contact us on 07 3256 1600.
