I said in an earlier post that one of the TOP 3 MISTAKES BUYING PROPERTY is
having no understanding of the local market
The importance of doing your own homework can not be overstated. If you do, you get your own understanding of the local market you are looking in. It's no good blaming agents for under quoting because you need to set your own realistic expectations of what the price range for the property really is.
After all, this is probably one of the most significant transactions you will make and you need to RESEARCH, RESEARCH and RESEARCH the property market. It doesn't matter if this is your first home, 5th investment property, or next commercial purchase. [see my starting TIPS below]
A tell tale sign about what the ultimate price might be is (and this is the simple bit), if there is a high degree of interest, in a heated market, then you can expect to pay above the quoted price. Allow a buffer of 10% to 20% above the quoted price.
Remember, some people just have deeper pockets than others and will pay whatever it takes to get a property.
Real Estate Agents represent the seller, not you the buyer, and quite rightly give a market estimate to you, the possible buyer. Agents use recent sales data, their own experience and judgment to give a price estimate. They are doing their job, the best for their client, and exactly what they are paid to do.
Remember, this is a "hot" market ~ anything can happen. Auctions are seeing record prices being set and this is in the papers every weekend ~ this is not new news.
I say be honest with the agents, so they have an understanding of where you are at; they can be more helpful answering your questions; won't chase you for an offer when you are not ready to make one; help educate you about the market; and will keep you posted on what else comes up. There is nothing wrong with window shopping, that's the start of your first nibble of interest at buying and agents can help you along your journey.
So, lets work out where you are in the property cycle, you are:
If you are looking to buy property, use this check list to see you in the right direction and it applies to ALL property buyers ...
I completely emphasise at the disappointment some of my clients feel at missing out, particularly when its their first home. Remember, even the most experienced buyer will miss out on a property. There is no point in having hurt feelings about this, it just makes you more resilient.
I often tell my clients,
if you miss out on the first one, don't worry, there are plenty more out there, and the perfect property is waiting for you ... this one just wasn't meant to be
In Linkedin you can read this post "Real Estate Agents Under Quoting!?!?" and others written by Justin Betar
Justin Betar, Notary Public & Lawyer
Telephone + 61 (2) 9279 1100 or email email@example.com
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