Whether you’re buying a property in a private sale or an auction, you need these tips to help you get the best deal possible.
Buying property is not easy, but property experts Universal Buyers Agents reveal their tips for what to do to ensure success, no matter the buying style.
UBA property expert Darren Piper said buyers often walk away from a negotiation disappointed because they were unfamiliar with the differences in buying styles and the best way to ensure their offer is selected.
“There’s a big difference in the way you purchase a property in a private sale versus an auction,” Mr Piper said.
“But all too often buyers go in with the same mentality and preparation and find themselves leaving the exchange disappointed because they didn’t know how to handle the buying process.”
Mr. Piper said in private sales doing homework is essential. Buyers should always know the recent sale price of similar properties, neighbourhood developments and changes, when the property last sold and for how much and what projected growth opportunities or rental income could be achieved.
“A buyer’s agent can do a lot of this for you, but if you’re doing it yourself, make sure you allow plenty of time to do your due diligence before making an offer,” he said.
“When you do, make sure you understand what payments are necessary on signing contracts, including the right conditions and what a fair bid is.”
An auction differs significantly as many of the conditions which offer a buffer for buyers don’t apply.
Mr Piper recommends starting the bidding prepared to follow through as auctions don’t follow the “offer and acceptance” method of a private sale.
“The normal buying method allows you to do your research after the acceptance of your offer and before the signing of the property transaction contract,” he said.
“This is not the case for an auction, you need to gather all the information you need before you enter the auction.”
Cooling off periods often don’t apply at auctions as well so buyers must be prepared to follow through on their bid at the fall of the hammer.
“You should always bid within an amount you can commit to,” Mr Piper said.
“That’s why you should always come to the auction knowing exactly what your budget is. A good trick is to set the maximum amount you can spend above a round number, if you decided that $900,000 is your upper limit, consider whether you could stretch to $904,000, this could help you win over bidders who have the same as your initial upper limit.”
Finally, he recommends if the process is too stressful or needs an expert eye, buyers should engage help from a buyer’s agent to ensure they get the best chance of success.