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.