The start of 2020 set the year up for a buyer’s market. Interest rates dropped, and are continuing to do so, and the government introduced the First Home Owner Grant. The COVID-19 pandemic is now seriously impacting Australia but this doesn’t mean that opportunities for buyers are disappearing. To open yourself up to possibilities in the market at the moment, you should follow these steps:
- Determine your non-negotiables
- Check your finances
- Consider a buyer’s agent
- Engage your local agent
- Buy on your terms
- Discuss with your solicitor
- Decide on a clear price
- Watch online auctions
1. Determine your non-negotiables
It’s important not to lose sight of your ‘must-haves’ when buying a home. When everything moves at a rapid pace, it can be easy to make a quick decision and forget your non-negotiables, which often leaves buyers unhappy.
To combat this, make a firm list of your must-haves. For example, a parking space, large garden or ensuite. Keep these in mind during any decision to avoid disappointment down the track.
2. Check your finances
In the current economic landscape, it’s crucial to have pre-approval for a loan. The approval won’t be difficult to get, due to low interest rates. The reason it’s important to have is that agents are only talking to serious buyers at the moment, so it’s likely you won’t be considered without having your finances in order.
Both you and the current owner of the property want security that you will be able to purchase the home if you make an offer. Get pre-approval for a loan to make your intentions clear.
3. Consider a buyer’s agent
A buyer’s agent is someone who can inspect the property on your behalf. They are incredibly useful at a time like this if you’re stuck overseas, not able to inspect a property in-person or housebound. The agent will inspect the property and report back.
Buyer’s agents are also aware of many off-market properties that are not on the public market yet. This can give you a foot in the door for your ideal property. They’ll also save you money during the negotiating phase, as they can advise you based on past experiences.
4. Engage your local agent
Due to the current circumstances, many properties that were preparing to come on the market in April and May have now shifted to an off-market strategy or delayed their launch.
By talking to your local agent, you can discover some of these properties and register your interest. You could even partake in a virtual inspection.
It’s key to build a relationship with your local agent and articulate exactly what you are looking for, even provide them with your list of non-negotiables. This way, if something comes up they can contact you immediately.
5. Buy on your terms
At the moment, it’s hard to plan in detail for the future as there is a severe lack of certainty. To cater to possible changes in your life induced by COVID19, you should ensure that you have flexibility in your settlement and in your contract.
If you have the ability to be flexible, you should make it clear to the seller. This could give you the upper hand when making an offer, as at the moment, sellers will most likely be looking for longer settlement periods.
6. Discuss with your solicitor
If you’re thinking of making an offer, there is no doubt that you will want the purchase to be as seamless as possible. To ensure a smooth transaction, check with your solicitor that they can still make transactions and that their business is still operating online.
This will give you peace of mind when making an offer and will allow them to guide you through the process.
7. Decide on a clear price
At the moment, sellers want a guaranteed sale. If you come in with a strong, appealing, and realistic offer, you’re more likely to secure the property. You can figure out what this price could be by using Avnu’s Property Report estimation tool.
Due to the unpredictable nature of the COVID19 outbreak, sellers are looking for stability and clarity from their buyers.
8. Watch online auctions
If you’re thinking of purchasing by auction you need to understand how an auction works. At the moment, only online auctions are being conducted, so it is of utmost importance to watch these and understand tactics used online.
You can register for AuctionNow and watch auctions of property around Australia and the area you’re looking to buy in.
With all these steps now activated, you’ll be ready to purchase a property, even in an uncertain market. There are still so many opportunities present and it is key to make the most of them. Your local Avnu agent can assist you in finding these great opportunities in the market, so get in touch.
DISCLAIMER – The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker Avnu will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.