Insight

09.11.16  Buying Tips

 

Prestige Property Buyers: Strategies They Use To Get Into The Market

It’s no surprise to anyone looking to buy into Sydney's eastern suburbs that it’s tough to get into the market right now.

There’s a lot of anxiety, with buyers missing out at auctions and the end of the year looming. This is translating into some new buying strategies that savvy purchasers are using to get the jump on other buyers.

Early bird offers

Many of the homes we put on the market for auction are now seeing lots of early inquiry and formal offers ahead of auction day. Many buyers tired of being unsuccessful are choosing to put their full hand out on the table to snap up the home and avoid the stress of competing when the property goes under the hammer. This also brings forward the sale and saves them having to wait until the day.

Those successful with this strategy are willing to pay the full price, or a higher price they feel comfortable to pay, to entice the seller pre-auction. Sellers are very wise to the fact that selling at auction often yields good results; so it’ll need to be a good offer to get it sold.

Being on the agent’s radar

Some buyers have missed out due to others making an early offer and most good real estate agents will go back to those who have expressed a strong interest and will tell them the seller is considering an early offer. This will ensure everyone has had a chance to buy – but you need to be on the agent’s radar to make sure you don’t miss the opportunity.

Most of the time, when a vendor is considering accepting an offer prior to the auction, we’ll give other interested buyers until close-of-business the same day to put in their final offer in writing. This is the fairest way, without having a Dutch auction, to get the best price for the vendor.

Be in it to win it

Showing up to the auctions themselves should be a no-brainer, but many home buyers simply give in – especially if their early offer has been rejected. But going to the auction and sticking through it, particularly if it passes in and goes to negotiation, is crucial. You may find a home has attracted far less interest on the day than expected.

After all, while the auction clearance rate is high, there are still some homes that don’t sell under the hammer. These are potential properties that any buyer can snap up so long as they’re there. Don’t forget to check the listings after the weekend to see what did and didn’t sell.

Off-market sales and buyer’s agents

Off-market sales have surged in recent times, though they’re not always the best way for a seller to do business. Many of these quieter sales, which may be on the market but only shared with pre-qualified buyers, are often bought by buyer’s agents acting on behalf of investors and up-market homebuyers.

Given the shortage of properties available to purchase, this is the best market in a long time to consider using a buyer’s agent, who acts on your behalf to purchase a home. Many more buyers are seeking out the services of these professionals to give them the edge over other buyers and access to more properties. This means that if you’re not using them, you may also end up left out.

Right now is a great time to consider this extra level of assistance when buying in Sydney's eastern suburbs.

Download our 2018/2019
Eastern Suburbs Market Report

Next Insight

Real Estate In Sydney's East: Why Extensions Are The New Renovations