Evidence has shown that summer is the most competitive and active period on a real estate calendar with many cities in Australia constantly offering the transaction of buying and selling of a property.
With increased levels of competition, unsurprisingly it can lead to a number of frustrated buyers. Is has been said that the ratio to potential buyers to the number of properties on offer, are heavily skewed to potential buyers. Meaning that there will always be disappointed individuals in the property market. So how do I stay competitive in the market?
So, what is the key to making a prior offer to a real estate agent? The following tips will help you:
So how do I stay competitive in the market?
Even though the auction process can be extremely frightening, it is also a way to ensure you do not over pay for a property. If you are determined to buy a particular property that suits you, it will ensure you are not over paying for property. So, for this instance it may be more favourable to take on a buyer’s advocate to take on the auction process rather than a prior offer, as it could save you a lot more money in the long run. If your a first home buyer and need help, check out our ‘First home buyer’s agent‘ page.
Putting down a prior offer can really put a potentially buyer in a disadvantage position, this could see you paying more for a property then what it’s actually worth. If a real estate agent agrees to a prior offer, it could indicate that you are the only potential buyer for that particular price. By doing this it could expose your budget and could potentially be used against you and other potential buyers, to ensure that the selling price will be a lot higher, regardless if it is a public auction or a private negotiation. If you choosing to negotiate on a property yourself read ‘negotiating on property price’ article.
Before you decide to submit a prior offer, it is vital to have a rock-hard understanding of the market value of the property, and keeping in mind that the price will not always equal the value of the property. You can feel quite disheartened when you discover that you have paid a lot more for a property then the going market value, purely because you did not undertake the right research, or you became emotionally attached to the property. The correct research is the key to negotiating an appropriate price for both parties. If you do not have the time to undertake the correct research, consider a Buyers Advocate to help undertake the whole process for you.
Remember that if you are going to submit a prior offer, make sure that it’s not open-ended. Meaning that you should give a window period of 3 working days or 48-hour period to ensure they get back to you. It is also important that you give adequate time for them to think it over, but not too much time so that they can’t use it against you and attract other potential buyers.
If you decide to put down a prior offer, it is crucial to offer it at the right time. If you decide to give an offer days before the auction, it is less likely that the agent will accept the offer, unless they have not received any interest from other potential buyers. If you decide to put down an offer, put it down as soon as possible, as this will save both parties the stress of an auction process.
Even though we buy a property a couple of times in our lifetime, you need to remember that you are dealing with professional negotiators, who sell and buy houses for their clients every week. It is highly recommended that you engage with a Buyers Advocate, to ensure that you purchase a property that is right for you and at the right price.