The property market is boo-boo-BOOMING right now! Whether you’re looking to buy your first pad or you’re a seasoned purchaser, there are some small things that will make a big difference to the end result, so it pays to have a few pearls of wisdom under your belt.
We have no idea about this stuff, so we called in the experts… say hello to our good friends and the team in the know for buying and selling houses — Century 21! Here’s what they spilled on what you need to know before buying a house in the current market…
The lay of the land
Right now, it’s a seller’s market! There’s a huge number of people eager to buy and not enough houses up for sale, which leads to fierce competition among buyers and pushes sale prices up. We don’t know what will happen in the future, so it’s a good time to get in, but don’t forget that in any market, it pays to do your homework before buying.
Be prepared!
Know your budget and be bold. There aren’t many bargains to be had in this market and because prices are still on the rise, it won’t pay off in the long run to offer low. Obviously, you need to know your limit too and know that if you miss out because the sale price goes above it, then you haven’t lost out — you’ve stayed within your boundaries, which is smart.
Do your research!
Research the current market to ensure the home or investment property suits your needs, and, most importantly, is within your budget. Added costs such as stamp duty, should be taken into the equation. Get a grip on your financial position by speaking to your bank or mortgage broker (and your accountant if you’re an investor). Remember to take into account calculations for a deposit, council rates, stamp duty, insurances, loan fees, conveyancing, building and pest inspections.
If you intend to purchase a property that will need renovations, think about the additional costs. It’s always advisable to obtain a building and pest inspection, to ensure there are no hidden faults or structural defects which could blow out your budget.
Find out what you could borrow, and get pre-approval if you can. Ask what timeframe you would need for settlement, and any other things you might need to bear in mind before making an offer on a property.
Do MORE research!
Don’t just research the costs, think about the big picture! Research the area, including recent sales comparable to the property, and have an understanding of current market trends. This will help prevent you being caught out by making an offer which is not favourable or over paying just because you have your heart set on a property.
Check out the neighbourhood, and find out what is happening in the area, and things like local schools, shopping facilities and public transport. Is the area going to have further development, which may cause implications to your property in the future? This could include things like blocking out views, overcrowding and peace and quiet. Or on the plus side, will future development create growth opportunities to increase the value of your property?
Be in the know!
If you’re thinking about buying and selling in the same market, make sure you clearly understand the financial commitments associated with both and get your finances ready and pre-approved.
If buying through auction, make sure you have finance approval ready, building inspection done or request the selling agent provides one, and have 10 percent minimum deposit ready.
Be quick!
If you see something coming on the market that appears to tick a lot of boxes, make sure you register your interest with the agent. Find out if the agent is likely to present early offers to the vendor or if they have a closing date for offers. Then, at the open inspection, check when the agent will be presenting offers and be prepared to make an offer quickly if you’re seriously interested.
Be patient!
It could take a while for the right property to come on the market so don’t get trigger-happy. And if you miss out on a property, it wasn’t meant to be – another one will come around!
Be flexible!
Take the original idea of what you’re looking for and then be open and willing to look at things outside that frame. Ask yourself the question: if a home you’re looking at is not your dream home, could it become your dream home by making some changes in the future?
Stay strong!
Don’t get emotionally involved in the process. You’ll probably lose out on quite a few properties before you are successful. Remember there are lots of other buyers in the same boat as you in this market and the more offers you put in the higher your chances of eventually being the successful buyer.
On the flipside
And, of course, if you’re planning to sell, it’s a great time to take advantage of the prices as the market will change. You’re in a great position to negotiate the settlement terms for you to look for your next home.
Above all, while the market is clearly short stocked, never buy something that is too great a compromise on your original buying goals.
Don’t forget that Century 21 is in your corner and will help you through it all. Get in touch with your local agent today and let us help you find your perfect property.
With twenty Century 21 offices across SA, you can find your closest one here, and to be inspired by what’s on the market, hit up Instagram, here.
Em xx
