Despite the odds falling in favour of buyers in current market conditions, around two in three Australians think it is too risky to get their foot onto the property ladder this year.
This was one of the major findings of a study by Aus Property Professionals, which found that around 65% of Australians believe that 2023 is the wrong time to enter the market due to rising interest rates and falling house prices.
On the other hand, the remaining third of Australians think 2023 provides an opportunity given the current buyer’s market.
Aus Property Professionals founder Lloyd Edge said while 2023 is riddled with challenges on the back of interest rate rises, it still presents an opportunity for savvy buyers and investors to enter the market with a smart strategy.
“We’re definitely in a buyer’s market right now, with an abundance of great deals available and less competition — this means that buyers have more options to choose from, and have more room to negotiate on price,” he said.
“It's a great time to enter the market for those who have been waiting on the sidelines for the right opportunity. The key is to do your research and be prepared to act quickly on promising opportunities.”
Mr Edge shared four key strategies buyers can use to ensure that they snap a deal this year:
1. Find motivated sellers, foreclosures
The current environment would likely see motivated sellers adjust their price expectations. These sellers often face financial difficulties and are willing to sell their property for less than market value to urgently convert their assets to cash.
“Also keep an eye out for foreclosures and short sales — these are properties that are being sold by banks or other lending institutions and can often be purchased for less than market value,” Mr Edge said.
It does not hurt to negotiate for properties that have been on the market for a long time. Some of these properties may already be overpriced and sellers could be more than willing to negotiate the price.
Properties in need for repairs and renovations can also be purchased for less than market value, as the cost of repairs can be a deterrent for many buyers.
“For savvy investors, it's also a great opportunity to add value to the property and manufacture equity through renovations,” Mr Edge said.
3. Widen your network
Speaking with real estate agents, investors, and other industry professionals will help buyers gain access to a wider range of properties, some of which may not yet be on the market.
Buyers who have a network of industry players can also have inside information about upcoming sales.
“A buyer’s agent can also help you with their expert negotiation skills and relationship with real estate agents,” Mr Edge said.
4. Remain persistent
One key trait buyers must have to be successful in the current market setting is persistence. Given the dynamics in the market, it is crucial to always be on the hunt and to keep an eye out for new opportunities.
“Do your research and due diligence to ensure you find the right property that fits your needs and budget,” Mr Edge said.
Photo by Andrea Piacquadio from Pexels.