The pressure-cooker atmosphere of purchasing property in a booming market can unnerve even the most experienced buyers.
Currently, media reports talk of buyers being motivated by FOMO or fear of missing out. Even if you believe this, I’d recommend you avoid getting swept up in the moment.
As an experienced real estate agent, my advice is to form a strategy for your property purchase in a booming market and keep a cool head and a closed check book when all around you are offering to write bigger and bigger checks.
Stretching your finances to breaking point in desperation can create a high cost, disrupting your desired lifestyle and even putting unnecessary pressure on relationships.
So instead, develop a strategy and stick to it. Below are four key actions you should take when you find your dream home. This advice aims to secure your purchase as quickly as possible and avoid another seller coming over the top of you.
- Organize a pre-arranged loan. This is an essential part of the strategy as it defines how much you can spend and it gives you instant access to finance
- Seek written proof that your offer has been passed to the property owner by the seller’s agent. You don’t want the agent holding back your offer, hoping something better might come up. Legally, the agent must pass all offers to their client.
- Ask the seller’s agent for a written copy of any other subsequent offers that have been received. This not only creates a paper trail but allows you the opportunity to increase your bid if that’s what you want to do.
- Once you’ve found your dream home, use the pre-arranged loan and savings to put down a 10% bond or deposit. Do this with a bank check. This should avoid any delay in exchanging contracts.
If I can help you with your property search or sell your existing property, please do not hesitate to contact me.