7 tips for property buying success

By Nicola McDougall, The Female Investor

Elevated demand in a time of low advertised supply has meant many potential purchasers are missing out on buying property, according to a national buyers’ agency.

Adviseable Property Buyer Kate Hill said the disconnect between buyer demand and properties available for sale in many areas was pushing prices higher – and was likely to continue to do so for some time to come.

“Interest rates are also part of the equation and are set to remain at all-time lows for another two, or maybe three, years,” Ms Hill said.

“Property markets are also being impacted by record low vacancy rates and rising weekly rents, which are encouraging more investors to take action and adding to the price pressure cooker.”

Ms Hill said the extreme levels of demand were so out of sync with the advertised supply level that more buyers were missing out than those who were being successful.

Unfortunately, the intense buyer competition for listings in many areas was also seeing some people significantly overpay for properties because of their fear of missing out, she said.

“Emotion is never a good thing when it comes to savvy property investment decisions because people run the real risk of overpaying,” Ms Hill said.

“However, it is still possible for purchasers to buy successfully in hot market conditions without burning all their cash to do so.”

7 tips for buying success in hot markets

1. Think laterally

Ms Hill said to aim for the “sweet spot” owner occupier resale market with a slight twist, including considering an adjacent suburb, a property with renovation potential and, for investors, those with a long-term lease in place.

2. Be proactive

Buyers need to be proactive during their property search including getting into the habit of asking agents what else they have on the books or coming up that is pre-market, she said.

3. Understand the contract
   
   “Be sure to have a thorough understanding of the offer and acceptance and contractual process of the respective state, as well as the expectations of the local market, so that you can move quickly, yet as safely, as possible,” Ms Hill said.
4. Ignore list prices
   
   Ms Hill said being armed with the ability to determine fair market value is arguably the top advantage, particularly when buying in a rapidly moving market when list prices are a starting point at best.
5. Review the contract early

“Ask the agent for the contract early and have it reviewed by your legal representative before you enter negotiations, so that can you make an informed decision,” Ms Hill said.

6. Don’t play it too cool
   
   Let the selling agent know you mean business, such as being the first bidder at auction or even the first to submit an offer pre-auction, Ms Hill said.
7. Contact the agent

“Don’t be afraid to chase up the agent after the first inspection as you could be one of 50-plus groups that visited the property and you may not be as memorable as you think were,” Ms Hill said.