Take time to understand the market where you intend to purchase and get to know the prices. Then get your processes in place.
Have you gone to purchase the property work out what you thought the value was only to see the property sold for a lot more money than you imagined or larger than your budget ever was!
Take time to understand the market and understand that past sales history and desktop valuations all suffer from time lag Especially in a rising market. There is some great resource on the Internet for discovering prices the very few if any are leading indicators of what the price is doing. Why is this? no property, vendor, sales agents, or buyers are the same. On each occasion, they provide a unique dynamic.
For the average purchaser understanding, these components will not be easy, and this also goes for the professional buyer’s agents. If your professional has experience as a selling agent, or auctioneer, understands property and data analytics, or has been a student of human behavioral types, you can complete the matrix of these variables. Even then this is very much a business of experience, subjectivity combining with objectivity to work out where the value lies in a property transaction amidst the variables. There is also no substitute for walking through properties, inspecting them with a clinical eye, attending Auctions, and testing the market with other agents.
Getting this process right can create a fantastic buyers roadmap or strategic plan. Yes, it does take a lot of time and effort. Many people just focus on their budget, their want for property, and go from there… after all an auction will dictate what the market thinks on a given day.
What if you viewed the sales scenario from a different viewpoint? In that pre-Auction, you have a measure of control and potential for engagement, where logical questions can be posed and prices discussed, and different parties accommodated. Whereas once you are in the auction arena you have no control – the auctioneer is playing the audience for the best price, the illogic of an emotional buyer and FOMO. You don’t know who you will be up against in the auction arena, and every increased bid goes by strong multiples. This often won’t occur in pre-auction negotiation.
Having a professional Buyer’s Agent undertakes a pricing analysis, comparative study, oversight of the properties, reviewing contracts, and strata plans, and structuring a negotiation before the auction will not only give you comfort but will provide assurance that you’re acquiring the property for a reasonable price. The instance of buyer’s remorse is less likely as you know you have done your homework.
As a buyer’s agent, I have represented people in purchasing property in a Full-Service Property buying capacity, conducted strategic negotiations, and purchased at the Auction.
As an auctioneer, I enjoy the theatre, stimulation, and variables at each event but take deep comfort in knowing the full process and machinations of how the auctioneers and their teams are performing, what the psychology of the vendor is, and their greed and fear scenarios. Auction day is the grand finale typically where the market decides the ultimate price.
To play in the grand finale it pays to understand the market comprehensively. A Buyer’s Agent can professionally help. Do you know what the property is worth, whether your budget is competitive, and if you are being realistic? Are you prepared with your finance? Have you got a property team working for your best outcome and protection?
If you don’t understand the market now you will hate yourself later.
Avoid frustration and get prepated… courtesy of Unsplash
