Buying the first family home is a landmark moment in most people’s lives. For Australians, it’s seen as a rite of passage. Having somewhere to raise your children is a fundamental pillar of our society.
Buyers are right to want to take their time and make the right choice.
For some families, you may stay 30 years or more in the same property if you love the location.
New data suggests we don’t have enough family homes on the market to meet the demand. Industry researcher Cotality (formerly CoreLogic) says we currently have 20% fewer properties for sale than is typical for the spring selling season.
That’s not to say there are no family homes available, but the number of buyers looking to make a purchase for this type of property has placed upward pressure on values.
In this climate, being able to respond quickly to an opportunity can be the difference between making your dream purchase and missing out.
So, here are six essential tips to ensure you’re ready for today’s competitive market:
Pick your ‘A’ team – Before you even start house-hunting, have your solicitor or conveyancer on standby. This means you can move from “interested” to “offer-ready” in a matter of hours, not days. If your target property is going to auction, secure a copy of the Contract of Sale and immediately pass it on to your legal team.
Money talks – Work with your bank or mortgage broker to secure a pre-approved loan. For upsizers, this will be based on the appraised value of your existing property, the equity in your existing loan and your ability to meet monthly mortgage repayments. In a competitive market, sellers don’t wait for buyers who haven’t organised the finances.
Be strategic – Assess the suburbs where you can afford to purchase. Ensure the location will meet your lifestyle needs. A great house in an unsuitable area leads to buyer’s remorse down the track. Once you’re in the home-hunting game, be as efficient and targeted as possible. Losing your weekends to fruitless property searches quickly becomes frustrating and tiring.
Talk to agents – Don’t rely only on the major property portals. Talk to agents about your needs and ask them to put you on their database. An increasing number of properties are being sold “off-market”. This means they are never advertised and sold quietly to someone the agent knew.
Fear of FOMO – The so-called Fear Of Missing Out (FOMO) is a dangerous emotion. Negotiate with confidence, not emotion. In today’s market, it’s easy to get caught up in a bidding war. Always set your walk-away price. Putting yourself under financial pressure can be the highest price you pay.
Be persistent – The search for a family home in this market can be frustrating and lengthy. Be patient, keep refining your search and talk to agents. Be prepared to put in multiple offers before you are successful.