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Don’t Pay Too Much For Your Property Purchase

Keen to get a good deal on your property purchase? It’s always important to take on board the advice of professionals; however, in saying that, it is fundamental to be weary of the so called ‘tricks of the trade’.

Agents are out to achieve the best price for their client – the seller. Buyers, on the other hand, rarely have someone to represent their goals.  I have not met a buyer who wants to pay more than they have to for a property, but it can be all too easy to pay too much.

Top tips to pay the best price on a property purchase: 

  • Put in the legwork:  You must put in the hours attending open for inspections in your chosen area to get an idea of what property is selling for.
  • Research the market: Buyers should complement their footwork with simple desktop research and background reading. Sites like RP Data and Residex can give you reports on average values for a suburb and potential yields. Reading the property magazines is also helpful.
  • Consider using a buyer’s agent for property purchases: A buyer’s agent works for the buyer and can advise whether you are paying a good price for the property.
  • Spend money to make money:  While you don’t want to pay too much for your property, it is worth investing in the expertise of a good accountant, valuer and buyer’s agent who will save you time and money in the long term.
  • Negotiate on your property purchase: Don’t accept it straight away when ‘there is no room for negotiation’.
  • Don’t get emotionally involved in the property: Inexperienced buyers can shoot themselves in the foot by getting caught up in the buzz of an auction or having their heart set on a property. It’s important to remain impartial and remember, if you do miss out, another place will come up.
  • Ask questions about your property purchase:  Ask the agent about comparable sales within the area.
  • Get an independent valuation: You can get a valuation online for around $50 which will let you know the property’s true value within around 10%. I recommend serious buyers to also get a professional valuation done, which costs about $500 but could save you tens of thousands on the final price.
  • Network with real estate agents: Agents want repeat customers and so will look after your needs. The competition can also advise you on whether the price is realistic.
  • Look for silent sales: If you have a good relationship with real estate agents, or a buyer’s agent working for you, you can find out about cheaper properties before they hit the market and when there is less competition.
  • Beware anyone trying to sell you a “bargain”: You don’t want to pay too much but it’s just as important you avoid anything at a bargain basement price – it’s usually a bargain because no one really wants it, and won’t get you good returns in the long run.

By Chris Gray

Property and renovations can be for anyone, it all comes down to your goals and dreams and how much you want them. When you’re starting out and have limited financials it is tough but the sooner you get on the ladder, the sooner your equity grows and you can start duplicating. Caution: the quicker you try and double your money, the sooner you’re likely to fall over, slow and steady is the key to winning the race.

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