STAY UP TO DATE WITH REAL ES­TATE

Pilbara News - - Lifestyle - Hay­den Groves Hay­den Groves is the pres­i­dent of the Real Es­tate In­sti­tute of Western Aus­tralia.

Don’t hes­i­tate to make an of­fer on a prop­erty you are gen­uinely in­ter­ested in.

It’s quite com­mon for po­ten­tial buy­ers, on learn­ing their “dream home” has sold, to lament not sub­mit­ting an of­fer be­cause ei­ther “we thought the owner wouldn’t have ac­cepted it” or “we didn’t have our pre-ap­proval for fi­nance yet”.

More­over, de­spite their in­ter­est in a prop­erty, many buy­ers don’t con­vey this to the rep­re­sent­ing agent. Of­ten, the rea­son for this is they mis­tak­enly be­lieve they will lose the abil­ity to man­age their own destiny if the seller and agent know they are in­ter­ested.

Time and time again, buy­ers will say that if they had known the house would sell for “that price”, they would have made an of­fer for the same or more.

While for some these state­ments are just throw­away com­ments, they also fre­quently rep­re­sent gen­uine dis­ap­point­ment from in­ter­ested buy­ers be­cause they feel they have missed out on se­cur­ing the prop­erty.

Buyer com­pe­ti­tion

A com­mon re­mark from buy­ers is that “if some­one else makes an of­fer, please let us know”.

De­lay­ing a buy­ing de­ci­sion on this ba­sis is al­most al­ways a bad move.

Buyer com­pe­ti­tion drives up prices, so it’s smarter to buy when there is less trans­ac­tional ac­tiv­ity.

If you’re buy­ing in com­pe­ti­tion with other pur­chasers, you are ne­go­ti­at­ing blind, un­aware of the qual­ity of the com­pet­ing of­fers. And if your of­fer is suc­cess­ful, you will prob­a­bly be cor­nered into pay­ing more than you would if ne­go­ti­at­ing alone.

With all this con­sid­ered, it actually de­fies logic to wait for an­other buyer to be in­ter­ested in the prop­erty be­fore sub­mit­ting your own of­fer.

Cur­rent mar­ket con­di­tions

One of the ben­e­fits of buy­ing in the cur­rent mar­ket is that there is less com­pe­ti­tion, so you are in a much bet­ter bar­gain­ing po­si­tion when ne­go­ti­at­ing the sale price.

When there are more buy­ers in the mar­ket, well-priced prop­er­ties will be snapped up as soon as they are mar­keted and listed for sale.

The out­look for real es­tate in WA in 2017 is that the mar­ket will con­tinue to present good value for home buy­ers and in­vestors.

If you’re think­ing about buy­ing, now is def­i­nitely the time to take ad­van­tage of the softer mar­ket con­di­tions to se­cure your­self your first home or to take the next step and trade up to a new home.

Don’t hes­i­tate to buy

If you find a home you’re gen­uinely in­ter­ested in, there is re­ally no point in wait­ing to see if some­one else makes an of­fer first.

You will be destined to ei­ther pay more than you hoped or miss out all to­gether.

Sim­i­larly, there is no point wait­ing for the elu­sive “bot­tom of the mar­ket”, be­cause it’s al­ways un­cer­tain as to pre­cisely where the bot­tom is.

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