Here are some tips when you are buying :

Caveat Emptor (meaning that the buyer is responsible for carrying out their own inspections to discover any defects with a property).
Auction clearance rates have begun to fall, while property prices are falling in some areas, resulting in ‘A Buyer’s Market’. This comes with some challenges including finances, bidding tactics, and properties being “passed in”.

Finances :
• Meet with your finance or mortgage broker early and seek a “pre-approval” for your maximum borrowing amount. This should be assessed by a lender and not system-generated. You need to ensure that a proposed loan could be serviced at the lender’s serviceability rate and not the published rate, as most computer tools only use the lender’s best base rate.
• Auctions : Note that all auctions are unconditional sales. Offers made three business days before auction and post-auction are also considered unconditional.
• Registering your interest : While there is no legal requirement to register before bidding, you could lose out if the property sells for a lower price and you are not known to the selling agent.
• Bidding : Before you raise your hand, always have a plan and ask yourself two questions:
a. How much do I want to pay?
b. What is my walk-away price?
• Passed in and negotiating : With recent clearance rates falling in Victoria, the likelihood of a property being “passed in” is increasing. The highest bidder has the exclusive right to negotiate with the vendor. If the highest bidder does not wish to proceed, the agents then reach out to others.

Tips when selling :
• First, ensure that you have arranged, via your solicitor or conveyancer, a Section 32 and a contract of sale prior to listing or selecting a real estate agent. Real estate agents want to “sign you up” quickly to secure the listing.
• Base your selling price on the lowest amount that you would accept.
• You are not selling “that” property; you are selling your property, so ask an agent to seek feedback from as many buyers as possible.
• Pick an agent that works with you and complete a due diligence on the agency. Look at “Rate My Agent” for reviews.
• Review the agent’s selling agreement carefully, focusing on their commission structure, marketing costs, and price ranges for selling your property.
• Ensure your property is well presented and decluttered.

Remember, there are many agents competing for your business, and some agents will take the approach of doing a fast deal and will talk about “off-market” sales and not having to spend money on renovations. Many promise they can deliver this “magic dust”. Once you have signed, it is highly likely that their tune will change.

Ensure that you complete your own due diligence to support your final decision.

 

Tags: ,