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How to Work with a Tight Budget

It's tempting to go on a big buying spree when you move into a new house, but how do you find your dream home when you're working with a tight budget? Bryce shares his insights.

Marcus and Laura were looking to buy a family home for themselves and their little son Archie. the challenge with their search is that they were looking for a three bedroom house in  suburb that wasn’t too far away from the Melbourne CBD for only $500,000.

Now Altona might turn out to be a really good long term bet for these guys because its so close to the Melbourne CBD and its still relatively good value because the homes are sort of sixties and seventies and vintage and that hasn’t sort of come back into fashion yet. if you look at other areas just as close to Melbourne CBD they’ve already been gentrified or rejuvenated. I can only see that the same thing will happen in Altona.

So they actually had 500,000 to spend. typically properties were going for much closer to 550,000 for what they were looking for. the fact that we picked it up for 501,000 was a real coup. to be honest the vendor wanted much more. we had to distract the owners on price by giving them some very favorable conditions and in this case we were finance pre approved so when we put our offer in at $501,000, we made it subject to no finance, so that when the vendor received that offer, it was something they seriously needed to consider and in fact they did and they ah accepted the offer

Have your finance pre-approved.

There are often other opportunities to negotiate terms with the contract and it takes the emphasis off price and one of the things that is commonly negotiated is the settlement terms. and so for instance, if the owner has bought a property already, a short settlement period will be very attractive to them. but if they haven’t yet bought something else, they might like a longer settlement so understanding I guess the bigger picture will often help in the negotiation process.

Tailor your offer to suit the seller's needs.

So its important to have a good strategy when you’re going to put an offer in on a property, particularly when you really have no wiggle room when it comes to price.

 
 

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