If you’re in the market to invest in property or looking to buy a home, the current landscape demands your attention. The property market has recently had a surge in auction clearances and home sales, indicating a highly competitive environment.
If you’ve been in the market, looking to capitalise on the relatively soft demand that preceded this surge, we understand the shift may be a bit of a shock. A change in tactics is probably in order.
Don’t worry, our Home Loan Experts brokers can help you compete in this tougher market.
Strategies For Buyers In A Competitive Market
The CoreLogic Home Value Index (HVI) highlights the market’s shift, with national home values increasing by 0.8% in August, marking the sixth consecutive monthly rise. Since hitting rock bottom in February, the national HVI has surged by 4.9%, adding approximately $34,301 to the median dwelling value.
Rising home values may be making it tough for you as a homebuyer to find a property that fits your budget. However, we are here to help you navigate this surging market and come out ahead.
In such a competitive environment, buyers need a well-designed game plan. Consider these insights from senior mortgage brokers Jonathan Preston and Vivienne Than to help you navigate the challenging Australian property market effectively:
1. Budget wisely
- Set a realistic budget and be prepared to act quickly when you find a property that meets your needs.
- Being ready to make offers with minimal contingencies, such as a very short finance clause or cooling-off period.
- Being willing to pay fair market value for a property, as finding bargains is increasingly rare in the current market
2. Research thoroughly
Arm yourself with information about the areas you’re interested in. Understand recent sales, price trends, and local market dynamics. Additionally, Preston recommends:
- Attending numerous open houses (50+ if possible) to become familiar with all available properties in your chosen region.
- Requesting property reports to gain confidence and ensure you have all the necessary information. We can help you get a free upfront property valuation report. Call us on 1300 889 743 to find out how.
3. Get professional advice
Assemble a team of homebuying experts. This may include real-estate agents, financial advisers, conveyancers, or mortgage brokers who can evaluate your financial situation. Preston suggests that you may need to consider the following:- Employing a buyer’s agent, but if that’s not feasible, then
- Making friends with local agents who might help you find off-market properties.
- Having a conveyancer in place so homebuyers can feel confident about making their offers.
4. Prioritise your must-haves
In a competitive market, you may need to compromise on some aspects. Identify your non-negotiables and be flexible on other features. For instance, if having a specific number of bedrooms is not negotiable, you could be flexible about the size of the kitchen or having a backyard.5. Get pre-approved
Both Preston and Than emphasise the importance of a pre-approved home loan. Having a pre-approval before you start house hunting can give you a competitive edge in negotiations and help you move quickly once you find a home you like.6. Don’t be swayed by urgency
In the fast-paced world of real estate, it’s easy to feel pressured to make quick decisions. However, Than advises that patience is your ally when making one of life’s most significant investments. Here’s how to stay composed:- Making offers tailored to the vendor’s wants and needs, provided they’re within your budget and being flexible with the settlement date.
- Being prepared for the possibility of buying a property with an existing lease agreement, especially when dealing with investment properties.
7. Consider alternative areas
Preston suggests:- Exploring different areas for potential opportunities if your preferred location is exceptionally competitive.