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Tips to buy property in a hot market

buy property hot marketIf you’re trying to buy a house right now, we know it’s tough. We know it’s disheartening when you turn up to an open home with 100 other couples. Or when you turn up to an auction thinking you have a chance, only to see the property snapped up for $80,000 more than the price guide.

Given the current state of the property market, should you just give up on finding your home altogether? We don’t think so.

However, there are a few things we think you can do, to give yourself the best chance of buying a home in a hot property market.

 

1. Get your finances in order – before you start seriously looking

You need to do this step first (i.e. talk to us sooner rather than later!) We also suggest you get a pre-approval in place – so you’ll be ready to go when a specific property you like comes up. Arranging a pre-approval also means you’ll know your purchase limit. That way, you won’t waste your time attending open homes for properties that are actually outside of your price range.

Something else to keep in mind – it’s not just real estate agents who get busy when the market heats up. Property valuers get busy and lenders get even busier, which generally results in everything taking a little longer to be actioned.

With some lenders taking 3-4 weeks to assess a pre-approval application, it advisable to get your pre-approval in order BEFORE you find a property you like. If you’re only talking to us now because you’ve seen a property come up for auction in 2 weeks time, it’s extremely likely you’ve left things a little late.

 

2. Be organised and get everything ready before you submit an offer

We suggest arranging your finance is the first step, but we also suggest to arrange a solicitor – because you’ll need one to assist you with the legal side of purchasing property which may include pre-auction contract negotiations.

To ensure your preferred conveyancer has the capacity to take you on, we would suggest you engage one before you have an offer accepted. That way, you’re not scrambling to find a conveyancer you trust, once your offer has been accepted.

 

3. Do your own research

It’s important to conduct your own research to gauge what a property is expected to sell for, rather than solely relying on the price guide suggested by the real estate. When the market is moving quickly, a price guide can become outdated from week-to-week, meaning that the price indicated by an agent 3 weeks ago could be well-off-the-mark come Auction Day.

 

4. Be flexible and realistic

When the market is hot, you need to understand it’s unlikely you’ll secure a bargain when buying property. In fact, you may even have to pay overs to get into the market, or even reconsider what you really want in a home.

We know this is not something that buyers generally like to hear, but if you understand what the current market is doing you’re more likely to have some success, because you know exactly what you’re up against and can adjust your buying strategy/ expectations accordingly.

 

5. Be decisive and act quickly when you need to

When a house comes up that you really like, you need to be prepared to act quickly – because chances are you won’t be the only ones interested. This is why having a pre-approval can be helpful, because you already know that a lender has agreed in principle to lend you funds, and you know you’re pre-approved up to a certain amount.

We also recommend having good understanding of what’s involved in buying property (we can help you with this!) or someone you can rely on (we can help with this part too!) to guide you through the process.

 

Buying a home can be stressful – especially when there’s added intensity from rising property prices and quick sales.

However, with the right support and a bit of planning, you’ll be well placed to buy your next home soon.

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