Whether you’re a first homebuyer or an experienced investor, there are a number of important things to consider before putting pen to paper and signing off a new property contract. If you have limited knowledge of the property market in your desired purchase location or are new to investing, it is best to approach a local real estate agent, who can give you some general feedback about local property prices and give you updates about any current or new listings which may be relevant to your individual requirements.
Some important things to consider before making an offer or bidding at an auction include:
Know the market
Sale and auction prices are generally determined by demand and how much others are willing to pay for the property. It pays to research recent sale prices for similar properties in the area before putting in an offer or bid, so you know you are getting the perfect investment at the best price.
Why is the vendor selling?
It won’t hurt to ask the agent or even the property owner how long they have lived there and why they are leaving. It may be a simple reason such as relocating due to work commitments or may be due to inconvenience such as being located too far from local facilities such as public transport etc.
Use the agent
In most cases, sellers will use a real estate agent to assist in selling their property. It is important to make a good first impression to convince the agent that you are genuinely interest in buying by being polite, professional and respectful. Developing a good professional relationship with the agent, will assist you later on in the negotiation process when trying to negotiate the best price.
Arrange an inspection
By physically observing the property inside and out, you will be able to get an idea of how much the property is worth and help you determine how much you are willing to pay. Determine whether the features of the property match your personal requirements, will you need to make any renovations and is the location convenient for your personal needs?
Know your financial limits and stick to them
Many buyers tend to make emotional decisions when they become overwhelmed when purchasing property. It is important to think carefully about how much you are able and willing to spend before making an offer or bid for any property. Decide how you will make the offer – are you going to present your highest, best and final offer first or present a lower offer allowing yourself room to negotiate up?
Legal requirements
In addition to getting finance pre-approval when purchasing property, international investors need to understand Australian government regulations in relation to purchasing property in Sydney. Investors must have Australian permanent residency if they wish to purchase any second hand properties. For further information in relation to your investing rights in Australia, please contact our office.
Consult one of our friendly experienced sales representatives today before purchasing your next property. We will be happy to offer you our knowledge and expertise to ensure you get your next dream investment at the best price.