IT is definitely a sellers’ market right now in Perth — gone are the days of making a cheeky offer and having it accepted or having time to pick and choose.
If you’re looking to buy a home now, there is a consensus among selling agents you will need to act quickly and decisively.
Community News spoke to Perth real estate agents to find out their top tips for finding success in this climate.
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In current conditions there is no point making an offer if you are not able to present highly competitive terms, according to Acton Cottesloe director Bev Heymans.
“If you need to sell your property in order to purchase, sell first — you simply won’t have any luck as a subject-to-sale buyer,” she said.
“If you really can’t bring yourself to do that, get financed.”
Get on local databases
Ms Heymans said this also wasn’t the time to rely solely on commercial real estate websites to find your next home.
“Many homes don’t even make it onto the internet before they sell — register your interest and requirements with local agents so they can notify you as soon as they get an appropriate listing,” she advised.
“Agents are like matchmakers in these desperate times, when we list a new home or hear of one that might suit, we contact buyers on our databases and that is how a lot of sales are taking place now.”
Now is not the time for games
Red Fox Property Group director Natalie Hoye suggested not putting your best offer on the table immediately in this climate could mean you were wasting your time.
“I get it: no one wants to feel ripped off or like they’ve overpaid for a property, but if you’re competing against several other buyers, the time for playing games with the seller and agent is over,” she said.
“Sellers look for the easiest route to the result, and once you’re in competition with other buyers, you’ve lost the right to negotiate with the seller one on one.
“If you start getting coy about what you’re prepared to pay, load your offer up with conditions or don’t put your genuine best foot forward, expect to miss out.”
Ms Hoye also said giving the selling agent a hard time could label you “difficult to deal with” and the message would often be conveyed to the owners, sending you further down the pile of offers.
Don’t pay for someone else’s reno
“The better a property looks, the more competition there is going to be for it and the more you’re going to have to pay,” Ms Hoye added.
She said competition was at its fiercest for renovated and pretty properties.
“By all means, play there if you have the budget, but if you’ve been consistently missing out, consider taking a different route,” Ms Hoye suggested.
“The ugly ducklings, those less well presented and unrenovated homes, attract a lot less buyer interest and competition and tend to sell more reasonable.”
“That said, while cosmetic renovations can often be done modestly, moving walls and making structural changes can’t.
“So be sure to buy something with good bones where the floorplan is going to work for you.”
Have realistic expectations and be prepared to compromise
“I appreciate it’s a very personal thing, but if you’re struggling to afford what you want, maybe it’s time to adjust your expectations and accept what you can afford,” Ms Hoye advised.
With market conditions unlikely to swing back into the buyer’s favour any time soon, she recommended buyers start with what they genuinely need in order to get into the market and work forward from there.
“One thing to consider is that while it might look like you’re paying slightly over the odds for something now, with price growth predictions for Perth as high as 19 per cent for this year, and property prices still lower than the peak in 2014, that might not be the case in 12 months’ time,” she added.
Get your loan sorted
Davey Real Estate’s Phil Pope said getting your finances in order was a must.
“This is really a priority — see your broker/bank before you start looking and get a firm idea of your borrowing capacity, timelines for expected approvals (one major lender won’t even pick up an application file for 30 days) and the settlement periods they recommend,” he advised.
“When I am presenting multiple offers, the ones I encourage the sellers to consider more strongly are those that I know have done their due diligence on their finance.
“Regardless of the price, the seller doesn’t want to have to put the property back on the market if finance falls through, so they want confidence in you.”
Think about the seller
He also said buyers needed to put themselves into the seller’s shoes to see the full picture.
“It’s not just about the money, if your offer suits the seller and their situation, it may give you an advantage over other buyers,” Mr Pope said.
“Speak to the agent and find out what terms would suit the seller; for example, do they have a preferred time period to settle, would a rent-back option be beneficial to them?
“A little more time is certainly preferred in today’s frenzied market.”
Get ready to sell ASAP
Mr Pope suggested it was savvy to get your own home primed to sell so that you were ready to go if you had an offer accepted.
“Many buyers are upgrading and will need to sell themselves (and) you may find you need to sell quickly — either you have found a new home and need to sell to finance it or you’ve already put an offer in and the agent has invoked the 48-hour clause,” he said.
“So before you even start looking for a new home, get yours ready to sell. Contact an agent you know, like and trust to help you.
“Get your photos, copywriting, floor plans, etc. completed then have the agent ‘park’ the property until you are ready to go.
“It will save you a couple of weeks of frantically running around trying to get it all ready to sell if you have an offer accepted — that couple of weeks may cost you the deal.”
Don’t go in blind
Harcourts Mandurah director Ben Hatch advised buyers to thoroughly do their homework before starting to look for a home.
“Knowing what is happening gives you an edge, so look at the latest sales and monitor the market trends in the areas that you are looking to buy,” he said.
“Also, research the styles of campaigns and ask the sales representative on how they operate.
“This will give you a clear understanding of the process, particularly with no-price marketing campaigns, or if it is an ‘offers above’ campaign be prepared to consider offering above the asking price if you know the property represents value and that you love it.”