Located in the growing Sunshine Coast suburb of Mount Coolum, this investment property was purchased Home Scouts for…
The Sunshine Coast is currently very much a seller’s market. So for those who might be trying to buy a house when stock levels are low and there’s a lot of competition for available homes, how do you make sure you have the best chance of getting the house you want?
The key is having a good strategy for positioning yourself ahead of other buyers. Here are some tips that may help:
Tips for Buying in a Seller’s Market
Get your financing in place before you start
You have to be ready to act fast in a seller’s market, which means making sure you have finance approval in place to make your offer as appealing as possible to the seller. Sellers are usually more likely to go with the buyer who’s already a sure deal in terms of financing.
Be ready to act fast in a seller’s market
Here on the Sunshine Coast, we are seeing that houses are selling sight unseen in this unprecedented seller’s market where interstate buyers are looking to make their sea change. So it’s never been more important to be able to act quickly – from arranging to see the property, to making an offer as hesitating may risk missing out on a great property. Just as important though is that your decision is informed and you have local knowledge of both the area and the property to understand the investment you are planning to make.
Be clear about what you want, and don’t want in a property
You need to be clear about what is on your “must have” list of criteria for your property, and what are the things that you are willing to compromise on. Style of home, number of bedrooms, location, are things to consider along with many other factors that may be important to you. This list can help you narrow down properties that may or may not suit your needs and save time and energy chasing properties that aren’t quite right.
Keep your offer simple if you can
For the best shot at an accepted offer in a seller’s market, try to keep it as simple as possible by minimising your conditions of the purchase as much as you can. Conditions such as needing to sell your existing home, awaiting finance approval, varying settlement dates, etc can give the seller less confidence that a sale to you will happen and then they may be more likely to go with a buyer who has a simple contract.
Understand what is important to the seller
Understanding the motivations and priorities of the seller is essential when making an offer on a property. Sellers have unique circumstances and objectives, which can greatly influence their decision-making process. By taking these factors into account, you can tailor your offer to align with their needs and make it more appealing to them, ultimately demonstrating your seriousness as a buyer.
One crucial aspect to consider is the seller’s timeline. Some sellers may be in a hurry to access the funds from the sale, perhaps due to financial obligations or a pressing need to relocate. In such cases, offering a quick and seamless transaction with a shorter settlement period can be highly appealing. On the other hand, some sellers may require a longer settlement period to accommodate their moving plans or find a suitable replacement property. In such situations, being flexible and accommodating with the settlement timeline can work in your favour.
Additionally, it’s essential to communicate your sincerity as a buyer. Providing a well-prepared and competitive offer, supported by relevant documentation and a pre-approval letter from your lender, can instil confidence in the seller about your seriousness and financial capability. Showing that you have thoroughly considered the property’s value and are prepared to make a reasonable offer can increase your chances of securing the deal.
Navigating a seller’s market, where competition among buyers is fierce, can be daunting. However, by keeping these considerations in mind and tailoring your offer to meet the seller’s needs, you can position yourself favourably and increase your chances of successfully acquiring the property you desire.
If you find yourself in need of guidance or assistance throughout the home-buying process, seeking professional help from real estate agents or buyers agent can provide valuable support and expertise. They can offer advice, negotiate on your behalf, and help you navigate the complexities of this seller’s market, making your home-buying experience less stressful and more successful.