I am feeling the frustration and uncertainty many Buyers are experiencing right now. You may feel a little lost and desperate, leading to disillusionment with the entire home-buying process.

​

In some cases, successful property Buyers have been in the market for months and have missed out on numerous properties due to unsuccessful offers.

​

I thought I'd take this opportunity to share with you my thoughts on today's market and what I would be doing as a Buyer, knowing what I know after being involved in Real Estate for 20 years.

​

Firstly, let's take a quick look at the Labouchere Rd Campaign.

• 75 Enquiries in 3 days

• Enquiries from Outside of WA

• 3 Days on Market

• 2 Offers

• No Home Open

​

SO AS A BUYER TODAY, WHAT DO YOU DO?

 

Buyer's Checklist

Firstly, if you don't already have it, get a copy of our Buyer's Checklist (click here).

 

Find a Property

Ensure you have a comprehensive pre-approval ready to be sent along with the Offer. Ask your Broker if it would be okay for you to pass their details to the Agent and even take it one step further and ask your Broker to call the Agent to confirm your Finance application is rock solid and can be obtained quickly.

 

Act Immediately

Don't wait to be followed up. Inform the Agent the second you decide to submit an Offer and ask to have the paperwork completed and submitted to the Seller on the same day.

 

OFFER PRICE

 

When putting a price on the Offer, my biggest advice would be STOP PLAYING THE GAME! It's not the market to think, "Oh, we will start here and can always increase the Offer'' While you are thinking that the Buyer who has already missed out on 5 other properties jumps straight over the top of your Offer with their "Best and Final Offer". They knock you out of the running and secure the property, probably at a price you would have paid and missed out. It's that simple!

I ask many Buyers who have missed out on properties with other Agents if they would have offered a higher amount than their unsuccessful Offer. Well, 9 out of 10 buyers say yes, they would have to, to which I respond Why didn't you? You had the chance! Perhaps you tried playing the game and left money on the table.

 

So, What Price to Offer? 

 

Dismiss the Asking Price or Price Guide

This won't help you, and you may think, "I don't want to pay $50k over the "from" price". Well, if you don't, your competition might.

 

Research Research Research

Look at similar properties in the area to see what they are selling for, not what you think they might sell for.

 

Establish the Property's Value

Based on what others might pay for it rather than what you want to pay.

 

Your Best and Final Offer

Determining your walk-away price for a property that remains within your budget is important. Once you have done this, ask yourself whether you would be disappointed if the property sold for $10k more than your walk-away price. If the answer is yes, then your walk-away price is actually higher than you thought, and you should adjust it accordingly. If the answer is no, or if you can't afford to go any higher, or if you don't see any additional value in the property, then you've already determined your walk-away price. Stick to it, and don't go any higher.

 

Inform the Agent that this is your First, Final and Best Offer.

 

What else will make your Offer more appealing to the Seller?

 

Make it easier for the Seller to accept your Offer.

 

Large Deposit

Put in as much as you can, not a small token amount like $1000, which does not indicate the strength of your financial position or commitment to the sale.

 

Seller's Settlement

Ask the Agent what timing suits the Seller for settlement. Do they need a long settlement to find a property themselves, or do they want a quick settlement?

 

KISS (Keep It Simple Silly)

Don't overcomplicate the Offer with silly conditions. Just: subject to finance, structural and termite inspections, and a good working order warranty. This is standard. A buyer requesting a professional full vacate clean of a tidy home may be enough to cost them the property....it has recently, or a Buyer wanting the crack in the fence repaired before settlement is unnecessary.

 

Finance Approval Period

Most people choose 28 days for finance approval. Ask your Broker if you can expedite the process by opting for 14 or 21 days.

 

So, in a nutshell...

 

• Research the Market

• Act Quickly

• Put in Your Best Offer Straight Away

• Find out the Seller's Timeframe

• Keep it Simple 

 

I hope this helps. 

 

Good Luck