Three tips to help you buy in a competitive property market
If you are currently on the lookout for a new home, then chances are somebody else is too.
Many people will be in the same mind-set as you and taking advantage of the low interest rates on offer.
Since there are a number of other buyers searching for property at the same time as you, it pays to have a few tricks up your sleeve that will help you on your search.
This will help you to get the property that you want, rather than missing out on what could be your dream home.
Take note of these tips when you're looking for a new home in a competitive market.
Before you actually begin searching for property, it might be a good idea to get your finances sorted first. This can be done through using online mortgage calculators to determine how much you can borrow.
It's important to note, however, that how much you can borrow and how much you can afford are two different things.
For example, you might have the income flowing in, but you may need to adjust your spending habits to meet your repayments.
Be sure to set your budget accordingly so that you can find a loan that you are comfortable with.
You can figure out your repayments by using a handy tool called a repayment calculator.
Once you have your figure in mind, you can talk to a mortgage broker about getting your loan pre-approved.
This has a number of benefits for you as a buyer.
One of the biggest is that you will have your finances set and ready to go. This will be of great use to you when you are negotiating a home, especially if there are other buyers in the mix.
Because being financially backed will show real estate agents and buyers that you are serious about purchasing, and have the means to spend on a property.
Search for a property
Once you have your pre-approved loan, you can start the fun part - searching for your new home.
During this phase, you'll need to keep your eyes and ears open for new properties that come up.
It might be a good idea to register your name and details with a few real estate companies. That way, if anything suitable gets listed then you will be quick to find out.
A great way to meet real estate agents and get on familiar terms with them is to regularly attend open homes. This will enable you to build a relationship with an agent - which will benefit you in a competitive market.
Brush up on your negotiation skills
Whether the property market is hot or cold, the negotiation process can always be a toughie. Each party is trying to gain an advantage over the other while coming to an agreement.
While it's great to be able to negotiate a price down, you may find that in a competitive market you'll need to convince an owner to sell to you.
Why should the owner of a property choose you over a dozen other buyers?
Other than your good looks or charm, it may be your flexibility as a buyer that makes you an attractive option.
A good tip to keep in mind is being accommodative of the owner's requirements. Whether it's negotiating on a different settlement date, or shifting the final property inspection forward - it pays to be flexible.
During the negotiation process, it's important to keep your emotions under control. This is especially crucial if you have become emotionally attached to the property that you are negotiating for, as you will need to be calm, cool and friendly.