Many aspiring purchasers have misaligned beliefs or readiness when purchasing. This creates procrastination.
The problem:
Many aspiring property buyers have misaligned beliefs about what they will get for their money. Particularly some interstate buyers moving into the Sydney market. Often there is a classic case of having champagne taste on a beer budget. The downside is the reality that their capability has no effervescence to acquire the property of their desires. It can be a collision of fantasy versus reality
Getting new purchasers correlatedto the reality of the market or the current fair value of a property can be an interesting dilemma and conundrum for a Buyer’s Agent.
Often people in this position will revert to a buyer’s agent hoping to change this scenario. The core underlying problem has not changed. Education about the market prices is one thing and using a BA to find and facilitate getting property is another. Know your financial capability first.
It is about being realistic and competitive in the market… where a buyer has reasonable expectations… It saves time, money, and heartache. However, a key problem can still remain – how can you close the gap of expectation from what you want versus the true value of the property in the market. The buyers who dont understand this will struggle.
The truth is the Buyer must understand their capability before they start searching.
Procrastination is a dilemma that can occur as a result of this scenario. More properties are found but don’t do not meet the buyer’s expectations, soon frustration sets in, comments will arise such as ‘too much money for what is on offer’, ‘The quality is just not there’… meanwhile the market moves on and they often spend months if not years of searching.
Many buyers forget the difficulty in acquiring that initial deposit versus waiting and watching prices and capital growth pass them by or thinking they should wait and save a larger depoist before moving forward. This is a very conscious choice – I have seen many not be able to keep up with property price rises with regards to getting tht deposit. Most deposits are saved ‘after tax’ has been paid, this journey is a slow one for many unless you are high income earners or have other means.
Understanding your capability helps make purchase decisions very easy when the budget is controlling the emotion and the area / property selection.
Indecision is exagerated when buyers cannot accurately assess a property value or understand the true market value of a property. This uncertainty always inhibits a good purchase decision because the buyer is not sure if their decison will be sound. The non-purchase conundrum continues.
Understanding a buyer’s journey and where a purchaser is in their journey is critical with a Buyer’s Agent. However, so is the Buyer’s understanding of where they have potentially been failing in their past efforts or approach and what must happen next to effectively purchase a property. If a purchaser has sought help in their journey and engaged a professional to do so they are often recognising thier weakness and surrendering to professional advice and expertise. Smart! they are delegating to a professional.
With a Buyer’s Agent, the outcome can often be a faster purchase without the pain. After all, you sought advice for a reason, you prepared to pay money for this advice, and it stands to reason you should listen to it…Not always so.
Control is a big factor. Good Buyers Agents will always allow the client to retain control or have the final say. This is why getting alignment is critical. Poor alignment or lack of due diligence on a purchaser and buyers agent alike can be an issue, as non-compatibility can just frustrate the purchase process and lead to a termination of the arrangement and no property for the client.
If you demand control, these parameters have to be clearly outlined and understood t the onset and importantly be accepted as the basis for a suitable relationship with the Buyer’s Agent. The best business is where synergy exists in relationships, inclusive of trust, realistic expectations, and understanding of the true nature of the market.
The workloads in finding the right property can be quite intense in time and effort to get the ‘shortlist’ of the right properties. Much of the nuance and drama involved in certain transactions will not be transferred to the Buyer as this would taint the customers experience. My aim is to make the purcahse process an enjoyable and empowering one whee you are taking another step in building your future.
The Buyers Agent is employed to navigate and buffer the purchase problems, provide experience and create a smooth transaction for the buyer.
Client budget alignment and capability are crucial to completing a good transaction. There are many instances where buyers have not had the financial ability they have stated and have narrowly averted large financial penalties or experienced them.
Many Buyers Agents will only proceed with a client once they have physical confirmation of purchasers’ funding. This is to protect the Client. It is necessary to protect the Buyers Agents reputation as well so client due diligence is essential. Often if they are not ready – they need to save or originate more funds to downgrade their expectations. Usually, it is the latter.
Continually I have dealt with interstate purchasers who are looking at Sydney for their new residence. They may have left a relatively newly built home on good size piece of land and expect an entry into Sydney in the Eastern Suburbs with a budget of $1.8 Million, expecting a 4-bedroom home under five years old with 3 bathrooms, 2 car spaces on 860m2 of level land… THIS IS NOT GOING TO HAPPEN. These properties were typically x3 of this.
Aligning budgets to your desired area is very important. Perhaps most importantly is having a preapproval of funds or knowing your financial ability before even commencing the search.
A simple tip is to search the median house price in your target area to understand a comparable basic value for a home similar to what you would like. It saves a lot of time and embarrassment.
If you need assistance on getting alignment don’t hesitate to call me for a confidential discussion. Gary Damp Buyers Agent on 0425 232 115
