When searching for property, Veronica Morgan explains why it's crucial you cast a wide net.
Marty & Jude were looking to buy their first home in Melbourne’s inner suburbs and the market was hot, hot, hot, with competitive auctions pushing prices upwards.
We found a house in Thornbury that seemed custom-made for them. They really wanted it and increased their budget to give themselves the best possible chance at auction.
During the sales campaign, the agent had been quoted a range of $640-$690K. Now, you can never rely on the agent’s estimate, so we did our own research and could see that it was more likely to sell in the mid $700s at least. Marty & Jude loved it enough to set their limit at $782,500. Two bidders pushed it past this level and it sold to a man who was bidding for his daughter and paid $805K. Big money.
The very same day another property was auctioned in the same suburb and passed in at a negotiated price with the only bidder for $780K. This house was very comparable – even slightly superior in every way - except the street wasn't quite as good. The difference? That agent had been quoting "mid $700s" throughout the campaign. Great opportunities exist, even in a buyers market, and we secured the second property a few days later for the same price Marty & Jude were prepared to pay for the other house.
I had to ask them: how come you didn’t see this house when you were researching the area? Their answer? Apart from the fact they were away for a couple of weekends and not out house hunting, it was because this property was advertised in a higher price bracket it didn’t come up in their internet searches.
When searching online for property it is crucial that you cast a wide net so you catch all prospects. A rough rule of thumb is to look in a price range from 25% under your minimum budget to 25% over your maximum.
So the moral of this story is to look at everything that is on the market and not stop looking until you have actually bought your new home. And try to keep an eye out for anything that is not underquoted (it does happen!) – there are usually less buyers competing for these properties.
Veronica Morgan also blogs on her website: http://www.gooddeeds.com.au/buyers-tips-and-the-property-market.