Follow this expert advice from host Bryce Holdaway in his first blog.
Gillian had been competing in big city real estate within a very popular price bracket not only for first homeowners but investors as well. It’s not uncommon to be fighting for properties with other like-minded buyers with similar budgets to yours!
Here are some tips to consider when you’re vying for a piece of property in a hotly contested price bracket.
• Listing prices in “buyers ranges” – it’s important to have an understanding of what other comparable properties have sold recently as this will give you the best idea of price. In Melbourne and Sydney, it’s not uncommon for sale prices to be as much as 15% above the bottom quoted range price.
• The highest levels of competition exist for the properties that have scarcity value. In Gillian’s case, she was looking for a period apartment with a low density and this was in very strong demand. If she was willing to compromise on block size or distance from the CBD, she would’ve been more likely to face less competition.
• Do you need a car space or internal laundry? These extras will be highly desirable but you can always look for property with good public transport links without needing a car and build a European style laundry in the kitchen or bathroom. Being adaptable and thinking outside the box provides you with more options.
• Have your ducks lined up before you start the search. If you have your finances and paperwork ready so you can strike early, you’re going to position yourself better to make your offer stand out. A bird in the hand is worth two in the bush for the real estate agent.
• Not all competition between competing offers is all about price… If you can be flexible with the vendor’s settlement dates or deposit terms or conditions it may give you the edge over other interested parties.
• Look for properties that require a little work. These will be often less desirable to many property hunters. Be prepared to see the opportunity and do the hard work others won’t! The property that Gillian originally liked eventually sold for 15% above the “guide price” as it was modern and ready to move in to which is a desirable feature for young property owners, which meant she had loads of completion and unfortunately missed out.
If you’re willing make some compromises you’ll have a better chance of getting your foot in the property door of a heavily contested price bracket.