Look Beyond the Price Tag - 5 Underrated Tips When Buying Property

by Rhiannan Jenkins

For first-home buyers, property investors, and those out of the market for years,
entering the property world is like stepping into uncharted territory. It's a huge
milestone, and one to celebrate. However, the process to securing a property is
peppered with challenges and a fair dose of nerves. The road to homeownership is
not always straightforward, and fraught with “I have no clue where to start” moments.

To help you build your confidence, check out these essential but often underrated
tips.

1. Prepare for an Emotional Journey 🎢

When you discover the property of your dreams, prepare yourself for the possibility
of a bidding war and even missing out. The emotional highs and lows are part and
parcel of the property-buying process.

The key to navigating this rollercoaster? Preparation. Here’s how to do it:

● Familiarise yourself with the latest sales trends. Look at the sold section of
real estate portals to compare the types of properties and their sale prices

● Maintain a friendly approach with real estate agents by actively engaging with
the agents at open homes, and answering their calls.

● Ensure your due diligence is in order. Familiarise yourself with the necessary
steps to make a confident offer and smooth property exchange.

● Be persistent and patient. Approach your property search with determination,
always ready for the next opportunity. Finding your ideal property should be a
thought-out and thorough process, not a sprint.

2. Always Look Beyond the Price Tag when Evaluating Properties 🔍

When it comes to buying property, the price guide is just the tip of the iceberg. Often,
the price guide is not a reflection of the final sale price of the property. Beneath the
surface are factors that influence the price of a property throughout the sales
campaign. These include the current market conditions, the vendor's expectations,
the level of competition for the property, and the appeal of the property to a broad
market. How do you determine what the property is worth? Do this:

● Study recent sales of similar properties in your area to grasp market values,
focussing on the differences between each sale such as position, size, and
level of renovation. Each of these details adds depth to your understanding of
what a fair price looks like.

3. Gather Your Support Team Early 🤝

Starting your property search without expert help is like trying to navigate a maze
blindfolded - challenging and directionless. So it’s crucial to assemble a team of
skilled professionals to steer you through each stage.

This group of skilled professionals offers their knowledge and insights to make every
step feel more manageable and less daunting. Who do you need in your team?

● Include a mortgage broker in your team for clear guidance on financing
options. They'll work to get you the best possible offerings, tailored to your
personal situation.

● Next, you'll need a property solicitor to guide you through the legal aspects of
buying a home. They review contracts and manage the conveyancing
process, ensuring you're fully informed and safeguarded throughout the
process.

● You should also consider a buyer's agent. They have a deep understanding of
the market and use their knowledge to find properties that meet your criteria.
Their negotiation skills and strategic insights are crucial in securing the right
property for you.

4. Pay Attention to the Fine Print 📄

Imagine uncovering unexpected issues or restrictions after you’ve purchased a
property. That's why it's crucial to pay attention to the finer details and outsource
where you are not a specialist. Remember, due diligence in property buying goes
beyond just legal reviews; it requires understanding the property's broader context,
including infrastructure planning, development proposals, and council decisions.
These factors can significantly influence a property's price, livability, and future
prospects. Here’s a rundown of just a few of the items to check in your research:

● Infrastructure Planning: Research planned infrastructure to understand potential changes in the area’s appeal and property’s use.

● Development Proposals: Awareness of upcoming developments can
inform you about potential neighbour changes, impacting property
prices and living experience.

● Council Impacts: Council decisions on zoning, land use, and
community initiatives can alter property use and enhance or detract
from its price.

This research approach creates a well-rounded understanding of the property and its
surroundings. It can help you make informed buying decisions and can also help
prevent potential headaches down the line.

5. Negotiation Starts with Your First Conversations 💬

Negotiation doesn’t begin when offers are invited; it starts with your first interaction
with the real estate agent. Your initial conversation is essential for gathering valuable
information and setting the stage for negotiation.

Establish a positive relationship with the real estate agent right from the start to help
smooth the negotiation process later on. This will help you bridge the gap to ask
about the seller’s motivations and any other elements that might influence the deal.

Following up after the inspection is crucial. Showing sincere interest and seeking to
understand any unique circumstances around the sale can shed light on the seller’s
motivations. These details are invaluable in negotiations, providing you with leverage
or insight into the seller's flexibility.

Staying updated on the property’s marketing campaign is another important step.
Regular communication with the agent lets you keep tabs on any shifts in strategy or
feedback from viewings, which might indicate the seller's readiness to negotiate.

Every time you interact with the agent, your initial inquiry influences the negotiation
tone. It’s about more than just the price; it’s about establishing yourself as an
informed and serious buyer. This rapport can significantly advance your negotiation,
especially in competitive markets. A relationship-orientated approach can set you
apart, ensuring you secure your ideal property at the right price.

Rhiannan Jenkins is a fully licensed Property Buyer’s Agent in Sydney. Rhiannan
specialises in sourcing and securing properties for home buyers and property
investors. Rhiannan is dedicated to empowering buyers, carefully guiding them
through the process to purchase the right property at the best price

[email protected] | 0409 812 137