The news that the nation is in the midst of a real estate correction is hardly headline news anymore. The fact of life is that property prices have come back and the market is slowed down. This slow down means less buyers buying. And with a continual flow of proeprties coming to the market there are many properties and to top it off some investors have pulled out from some of their portfolios, all up leaving behind a host of homes on the market that presently outpace the number of buyers in the market. What should be headline news, however, is how the wisest of sellers have reduced their profit expectations and happily entertain all offers reflective of the corrected values of their homes. These “onto it” sellers know that when they sell they are more than likely able to buy their next house at the same perceived bargin price.
A few weeks ago I wrote a post giving some tips to sellers looking to sell in a buyers’ market. But this time I want to give some tips to Buyers in this buyers market so that the buying process can be made as straight forward as possible. Especially when dealing with the emotionally attached sellers who don’t want to give their home away.
Here are 5 quick tips to get yourself on the way to buying something effectively in this market
Get pre-approved for a mortgage.
It’s a different sort of market when coming to buy if you need to finance your purchase. Credit companies have tightened considerably, with many of the products offered to buyers only a year ago no longer available today. Lenders have retreated to safer standards of underwriting that protect borrowers from overextending themselves. If you can’t afford a particular home using solid mainstream financing, you should continue looking.
Let your fingers do the walking.
With so many homes to see, attempting to visit each one is counterproductive. Wasted time creates missed opportunities. At realestate.co.nz you can look at 90% of the properties the countries real estate agents have on the market and if you go to trademe.co.nz you could look at some of the private sellers trying to sell privately along with some agency listings. Once you’ve narrowed your search, contact an a real estate agent you either trust or who seems to know what they are doing to help you judge the best values in your price range. Their insights, along with the analytical tools they bring to the table, will help you discard the overpriced lemons in your target neighbourhoods. The help of an agent is vital and can really help you make an informed and wise decision. Remember the use of an agent as a buyer won’t cost you fighter.
Beware of strangers bearing gifts.
You aren’t shopping for a new car lease or a sexy new flat-screen TV, so don’t let merchandise incentives cloud your vision. If a seller is offering an incentive to buy, make sure it has something to do with the house, like a credit toward a desirable upgrade or a further reduction in price. They may be giving these incentives to cloud the reality that the house is overpriced or may be defected in some way.
When you find the right house at the right price, buy it!
If recent sales in the neighbourhood support its asking price, go for it. Presumably, you are hunting for more than just a good price; you’re also looking for that one special house that completely suits your lifestyle. Holding back in hopes that prices will go lower is a flawed strategy. You can never know this until prices are heading up again. Meanwhile, someone else may buy the home, especially if it is priced correctly. Remember profiting from a property investment is also a long term investment.
Make intelligent offers that enable you to negotiate with skill. Right now there is plenty of room to negotiate, provided you aren’t making uninformed offers that sellers don’t take seriously. You are in a much stronger position when you can show that recent sales in the neighbourhood justify your offer. This provides a much firmer foundation from which to begin negotiations and takes you a giant step closer to enjoying your new home. A Real Estate agent who knows the area will be able to help you with this and help in the negotiating process.
Also remember everyone wants a sale as everyone gets a result from it. The seller gets the house sold, you get to buy the house you want and the agent gets their commission. So at the end of the day we are all striving for the same result.
Deon Swiggs
Property Profits