Do your homework
The first step in finding a great property lies in your ability to identify a good deal. Here’s where you’ve got to do your homework – Frank Valentic from Advantage Consulting suggests that you start researching the area you want to buy in at least three months before you start the purchasing process. “Do your due diligence and undertake a sales comparison of similar properties that you have sold in the last three months in your chosen area,” says Valentic.
By getting a feel for local amenities, median house prices, average vendor discounting and the average number of days a property remains on the market you’ll get some great clues as to how much you negotiating power you have
You negotiate when you buy a car, right? So why not a house? “While not everything in real estate is negotiable, experienced negotiators can secure top-notch deals in any market,” says Valentic.
The key is in finding motivated sellers – those who have recently decided to sell because of a death, divorce, debt, distance, deadline or disaster.
Steps to securing a great deal
1. Make the first offer. In a hot market most properties receive multiple offers so try and get in first. This allows you to come back with a counter offer if necessary.
2. Have a property to trade in. According to Valentic, nothing excites an agent more than knowing they may be able to list another property while selling the one that they have. If an agent thinks that they may be able to profit from two sales commissions instead of one, you’ve got a great advantage.
3. Join a syndicate. If you’re buying houses or apartments around your city’s median price you’ll have to compete against other investors and homebuyers. However, if you join a syndicate to purchase a block of flats at a high price, then your competition instantly shrinks.
4. Lose the emotion. Purchasing property, especially as an investment, should not be an emotional decision. Stick to your strategy, focus on quality and finding undervalued properties and make sure you make multiple offers – finding a good buy is a numbers game so the more offers you make, the more chance you have of finding the right property.
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