BenPatterson
Joined: 24 Jul 2015
Posts: 8
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 Posted: Fri Jul 24, 2015 10:26 am Post subject: Hot tips for buying well in a rising market |
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How to find value and recognise a good buy
Step one in purchasing any property is the ability to identify a good deal – and it all comes down to homework. Do your due diligence and undertake a sales comparison of similar properties that have sold in the last three months in your chosen area. Also consider engaging a buyer’s agent or valuer who has access to detailed sales data and is experienced in valuing property based on its location, existing condition, accommodation, style and land size/content.
1. Make the first offer
With most properties receiving multiple offers, try to get a box seat for negotiations. Make the first offer and have the agent agree to come back to you with the final right of refusal to beat the highest offer, or to submit a counter offer. By making the first offer, you are in a position to negotiate with the agent so that you are the only person given a second offer opportunity.
2. Have a property to ‘trade in’
Having a property to ‘trade in’ may help you move into a more favourable position in the negotiation process. Nothing gets a real estate agent more excited than knowing they may be able to list another property while selling the one they have.
When the agent knows that he or she may be able to profit from two sales commissions instead of one, it could be to your advantage. If you don’t have a ‘trade in’ property yourself, what about a property owned by any family, friends, work colleagues or neighbours who are looking to sell?
3. Use syndicate purchases to leverage buying power
If you are buying houses or apartments around your city’s median price, you will have strong competition from homebuyers and investors – creating upward price pressure.
If, however, you joined a syndicate of purchasers to buy a block of flats for, say, $2.5m, your competition shrinks as there are less people with this investment or purchase capacity.
Our company regularly buys whole block of flats on behalf of syndicate investors to leverage buying power to avoid competing with small investors and buyers at the popular end of the market.
4. Make multiple low offers
If you are purchasing an investment property, it should not be an emotional decision. Never buy an investment property based on emotion and personal taste. Instead, focus on quality, blue chip, investment-grade properties that ‘D’ vendors just have to sell. Separate emotion from your purchase and make at least five multiple offers which will give you a better chance of finding a vendor that needs to sell.
property investment |
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