While property prices have started moderating on the back of rate rises that started in May, many areas still have opportunities for further discounts and bargains, especially for buyers who are willing to do the work.
Buyers Agency Australia founder Dragan Dimovski said despite the slowdown in house price growth in recent months, declines have been limited.
“Extreme discounts well beyond the usual price reductions in this market can be found for those who have the time to do the legwork,” he said.
Recently, Mr Dimovski helped a client purchase a $750,000 property in the Logan City Council area for only $608,000, at a discount of around 19%.
“The property was purchased off-market, sourced through a relationship we had with a real estate agent,” he said.
“Even though the agent said the seller wanted more than $700,000, and my research led me to believe the home was worth around $750,000, I still made an initial offer of $608,000, which was accepted.”
While it might seem easy to find bargains like this, Mr Dimovski said it would actually take a lot of work to chance upon a property that can be discounted.
To help buyers find discounts and bargains, Mr Dimovski shared these six tips:
1. Be knowledgeable about certain areas
After determining how much they can afford to spend and setting up their budgets, buyers must ensure that they are knowledgeable about the areas they intend to buy in.
As a rule of thumb, buyers must have three options for areas they wish to purchase in.
“This will include looking at the homes for sale in your price range and how much they are selling for in the current market. This will help you to identify a good deal when it arises,” Mr Dimovski said.
2. Reach out to local real estate agents
While listing sites are helpful, information from local estate agents can give buyers advantage over others especially when looking for off-market homes up for sale.
Having good relationship with local estate agents will give buyers access to these off-market listings, which are often from sellers who have yet to fully decide about the price of the property.
Generally, off-market listings sell for a lower price given the less competition.
3. Prepare to ask the right questions
It is rare for agents to disclose the reason why their client is selling but buyers must ask the right questions to know the motivations of these sellers.
“In that case they will usually be prepared to sell for a significant discount if your offer is the first to come along, with the right conditions,” said Mr Dimovski.
4. Prepare to play the numbers game
Mr Dimovski said looking for bargains can be a numbers game and buyers just must keep looking and explore more homes to see the best discount.
“Don’t get frustrated if you don’t find a bargain immediately – it can take some time but eventually you will spot one,” he said.
5. Do not be afraid to knock on people’s doors
There are times that direct selling yields the best discount. Mr Dimovksi said buyers can do mailout and doorknocks, allowing them to ask homeowners directly if they are interested in selling their houses.
“Homeowners are often happy to sell direct to an interested buyer as it cuts out the real estate agent’s fees, and this means they are often happy to sell for less,” he said.
“Again, it’s a numbers game, so even if you do hundreds - or thousands - of letterbox drops, you just need one homeowner willing to sell.”
6. Reach out to buyers’ agents
Bargains do not just fall into anyone’s lap, given the significant work involved behind finding one.
Still, Mr Dimovski said reaching out to buyers’ agents would provide substantial help.
“Engaging an experienced buyers’ agent puts all the work and stress into someone’s else’s hands, someone who looks at property every day and is able to identify bargains when they see them,” he said
“While there is a fee for a buyers’ agent, it is more than covered by the greater price discount they are able to secure on your behalf.”
Photo by Odua Images on Canva.