Relocation Relocation host, Veronica Morgan, shares her real estate insights.
Agents have a saying that buyers are liars
When I tell this to my clients they are all invariably shocked. But aren’t real estate agents the ones you can’t trust? When was the last time you told an agent how much you had to spend, or how much you were prepared to bid to on an auction property. Buying and selling real estate is often a game of bluff – with buyers and selling agents facing off and second-guessing each other. Just for something different – try being honest with the next real estate agent you deal with and see if that improves the quality of information you get from them.
The agent isn’t always lying!
You found a place you want to buy and the agent is telling you there is another offer on the table. You don’t know whether to believe them or not. You don’t want to be so gullible that you just believe them and pay the asking price. But you don’t want somebody else to buy it. More times than not the agent is telling the truth. The real question you need to ask yourself is whether you would be prepared to lose the property for the amount extra the agent is saying you have to pay. If you are, then move on…
There are times when you can make a low offer on a property and be the only person in the running. But if the market is slow and a property is not overpriced, this won’t win you any favours with neither the agent nor the vendor. It is important to be aware that you can easily insult a vendor. There is nothing surer than you falling in love with a property that you cannot afford. So be careful when looking at property that is priced over your budget. If it is overpriced you may find yourself a bargain, but if it is not overpriced, you are just setting yourself up for disappointment…
It’s a bit back to front to fall in love with a property for investment and not with the one you are trying to buy to live in. But this is what Claudia has done. Surprise, surprise, both properties are over budget! The issue with the house that would become their home is that they have a beer budget and champagne taste – they actually can’t afford their ideal property and it’s hard to fall in love with something that is less than that ideal. I would suggest, however, that it is folly to try to find additional funds for the investment apartment rather than their home. To get into the Northern Beaches market they really need every cent they can muster – they can buy a different apartment for investment.