Breaking into the property market is proving to be a challenging time for first home buyers right around the nation but thankfully, there are ways to get ahead.
It’s no secret that it’s getting harder to get into your first home. The domino effects of Covid have well and truly shaken up the Australian economy, but the good news is that the Morrison government wants more Aussies to actively participate in the nation’s property market, particularly young people.
While the grants, interest rate cuts and monetary incentives are great, saving the ideal 20% deposit can often take years. However, the first quarter of 2021 has all but surprised everyone, and showed the steepest rise in housing prices nationally in almost two decades.
Of course, this is wonderful news for sellers, it’s not so good for first home buyers. The current seller’s market is the result of demand exceeding supply, with buyers lining up to try and nab the same property. For first home buyers who may be inexperienced in the property market or may not have as much to spend, this experience can quickly become a disheartening one.
Buying Your First Home In A Seller’s Market
Thankfully, there are a few secret weapons that first home buyers can deploy in a sellers market in order to get into their first home, and within their budget. Like all things real estate, knowledge is power, and preparation is key.
Get A Pre Approval – As speed is often the name of the game when buying in a sellers market, the single greatest weapon to have in your artillery is having a loan pre approval ready to go. Be prepared, as you might only have days – not weeks – to get your offer submitted after viewing the home.
Don’t Get Emotional – While it’s common for all buyers to get a “feeling” about a certain property or house, avoid shopping with sentiment or emotion, as this can cloud your judgement on a property’s prospects. It’s also a surefire way to get disappointed, if or when your “favourite” sells from under you, and in turn increasing your stress levels accordingly.
Be Flexible – Before you start scoping for a property, be clear on your “must have” list – and don’t compromise on this. Your non-negotiables might be as simple as built in wardrobes, or even a suburb. However, if it’s not on the list, be flexible and open minded as to what sort of properties you could potentially be interested in so you don’t overlook any.
Keep It Simple – When looking at offers, sellers see contingencies such as inspections and finance clauses as potential reasons for the deal to fall through. To make yourself appear as the favourable option, try to keep your clauses to a minimum and only include the essentials if and when possible.
Start Strong – When competing in a sellers market, it’s certainly not the time to throw out low ball offers – you won’t be taken seriously, and you’ll miss out in favour of the serious contenders. After all, money talks and sellers are likely to be enticed by unconditional offers with minimal or no terms attached.
Best Bid When Competing – In most cases, if you are competing against other buyers on a property the agent will ask you to make a final and best offer. This means you will not have an opportunity to review this offer once submitted. Put your strongest offer forward with the best possible conditions, that way if someone does pay more, you will have no regrets. Too often buyers who miss out on a home in this situation regret that they didn’t put their best offer on the table upfront and thought the agent would come back to them for a review.
Write An Offer Letter – Sometimes, it’s not just about the money, particularly if the seller or vendor has a sentimental attachment to the property in question – they want to see it in good hands. Adding a personal touch like a video or letter directly to them in your application is one way to stand out from the crowd and humanize the experience for both of you.
Consider Waiting – While this depends entirely on your own individual circumstance or situation, some first home buyers are actively choosing to sit tight over the next few months while the property market stabilizes. What goes up must come down, and industry experts are expecting the current boom to settle within the next few months.
Enlisting Help From A Property Advisor
A completely free service, Emergency Services Property Advisors provide property advisor services to Police, Fire, Ambulance and S.E.S personnel and their families right across Victoria.
Luke and the team at ESPA are passionate about providing support to some of Australia’s most valued public servants, and aim to provide tangible real estate advice to those in stressful positions with crazy hours at no extra cost to them. Along with key industry insights, ESPA also works with a broad range of service providers linked to the real estate industry such as conveyancers, trades, legal practitioners and mortgage brokers.
If you are an emergency services worker looking to potentially buy or sell property in the future, please get in touch with Emergency Services Property Advisors today to discuss how we can turn your real estate dreams into reality, or call Luke directly on 0414 757 705.
