3rd August 2021 / Prue Fletcher: 5 Actions to Help Buy Your Dream Home in a Booming Market

It can be brutal out there and a continuous upturn in the property market has left many wondering what more they can do to secure their dream home.

There are several strategies you can deploy to reduce the risk of losing a property that's captured your heart. But first let's take a quick look at some of the behaviours you might be experiencing in the market.

With supply being disrupted over the last 12 months by continuous lockdowns, we have seen buyers express a real sense of FOMO (fear of missing out) when re-entering the marketplace, which is one of the behaviours driving prices up. Director Michael Richardson also helps explain that 'with prices rising so quickly, it is becoming increasingly difficult to provide an accurate price estimate, especially when the data that we use to calculate those prices is often quickly becoming out of date'.

We are in a unique market, with lots of external factors affecting the surge in property values such as record low interest rates, a lack of stock supply and pent up demand from buyers having chosen to pause their property purchases over recent lockdown(s). Therefore to remain competitive in what is truly a 'week-by-week' market, if you miss out you continuously need to re-asses. Do you need to pay a little bit more? Get real with your expectations?

Buying property can also be an emotionally charged business, which is why it's important to have a solid strategy before you start negotiating.

Here's our top five tips for securing a home in a booming market:

1. Call In the Experts Early

Organise your pre-approval. This is an essential part of the strategy as it defines how much you can spend and it gives you instant access to your finances putting you at a competitive advantage.

Getting a copy of the sale contract as soon as possible and having it examined by a licensed conveyancer or solicitor to avoid delays should early offers be submitted.

2. Know What You Want and Be Realistic

Do your homework on the local market. How much are prices rising locally? What did properties nearby sell for over the past few weeks? Are you being realistic? Data quickly becomes redundant in the current market and you need to be moving with it.

3. Don't Wait to Buy Property, Buy Property and Wait

While we all want to buy for a bargain, it rarely happens, especially in a rising market. Paying a fair price for a property today can be the same (or even cheaper) when compared to buying at a discount tomorrow. Tomorrow often never transpires and if you do find a bargain, it may be in six months time when the property has gone up $50k which far outweighs the extra $20k you stretched to today.

4. Accepting that the Market Moves Quicker than We Can Save

Saving for a deposit is tough, especially when you're trying to enter a rising market. If you're finding the price of property is rising quicker than you can save, consider paying Lenders Mortgage Insurance (LMI) as it may be better to buy something now than waiting for the day when you can save the extra 10%.

5. Boost Your Game Day Confidence

Attend as many auctions as you can, as well-attended open homes can often be confusing. Watch how different parties bid and pay attention to whether it's a one off high price with two competitive developers pushing the price up, or if there's a healthy buying pool all competing seriously as this will be a better barometer of true market value. If you are too emotionally involved, consider getting a trusted advisor to bid on your behalf.

At the end of the day, it pays to remember that action is the key in a moving market, and you've got to continuously re-asses your boundaries as prices and opportunities change. It's rare for everything to be 100% perfect before you take the plunge, so do your research and build your confidence in readiness to make your move.

If you are currently considering buying or selling, this is the ideal time to make contact with your agent, to ensure you are fully informed as you prepare to enter the market

Click Here to get in touch with us today. We look forward to helping you achieve your property goals.