5 tips from a professional property buyer
Cohen Handler goal is to provide an outstanding service to all residential and commercial property buyers from first-home owners all the way through to sophisticated investors. Mathew Barnes from our Melbourne Office shares a few of his top tips for purchasing property:
Seller’s Agents are not on your side
Sales agents work for the vendor, whilst the agent can be a major resource for information on the property, they are still trying to get the best price for their client. Taking this into account you need to do your own research, sites like RPdata and Residex are good sources of information. It could also be as simple as looking on realestate.com.au on the sold property tab to see what has sold in the area recently. And of course reputable independent buyers agents do this week in week out, so if you feel a bit overwhelmed with the process and are not sure I recommend speaking with an area specialist where you are looking to buy.
Be strong when submitting an offer
I believe submitting an offer prior to auction is a no lose situation. To submit an offer prior costs you nothing, maybe a $10 fee for the bank cheque. If you are going to auction anyway I would hope you have had a building and pest inspection completed. The benefit of submitting an offer prior is that you may be able to purchase the property or you can get more information on the sale through a counter offer or feedback on price. Always put a deadline on your offer and never listen to an agent when they say no offers prior, they are not the vendor.
Have finance sorted
Always have a pre-approval in place, there is nothing worse than having an offer accepted then finding out that you can’t access enough money to complete the transaction. You can submit an offer subject to finance however in a heated market this will be seen as a very weak offer and a vendor is less likely to accept this type of offer.
Ask about off market opportunities
Off market properties are not a myth, we purchase a lot of property off market. Most good agents will know of some off market properties that may suit your requirements. Off market properties are good as there is limited competition however the vendor is normally after a good price so you are less likely to pick up a bargain.
Negotiate or move on
The party that is willing to walk away has the most power. When talking about investments there will always be another one around the corner, so if the price is not right, walk! Don’t get sucked in to giving another 10k or 20k, if there is a lower level of competition putting a deadline on offers and not budging on price it will put you in a power position.
From our perspective, it’s always helpful to have a dedicated and professional team to help you along your financial journey and we’ll be bringing you more of these handy hints from professionals across the financial spectrum in the near future – the buyers agents at Cohen Handler can help you get the right property at the right price.