Finding it harder to buy property? You’re not alone. When housing stock levels are lower most buyers can be deterred from searching and purchasing, but it’s actually still very possible to secure property if you take the right steps.
Stock levels are generally trending lower across most markets at the moment. With demand higher than supply competition is tighter, and for some buyers this might be cause to back away from their property search. They don’t want to have to fight too hard to secure property.
However, it’s actually more of an impetus to keep looking. And don’t worry; if there’s less stock it is still very possible to find quality property. Here are some key things to remember.
Find off-market property
Off-market property is stock that is not available to the public, instead being sold privately without any advertising. Buyers for these properties are usually sourced through data bases compiled by the Selling Agent.
In this situation a Buyer Agent can be particularly useful to buyers. Buyer Agents will get direct access to off-market properties through their relationships and contact with Selling Agents. This means buyers who engage a Buyer Agent are widening their pool of choices and can increase their opportunity to buy – a very useful advantage when stock is lower.
Speak to the agents
Once you’ve found a property that fits your criteria, you need to gather as much information about the property from the agent as you can. Specifically focus on the level of interest for the property; get a gauge on the level of competition you could face. How many other parties are looking at this property?
Also get an idea as to the interest level of the competition. That is, how much do the other parties want the property? For example, is there three or four parties with lukewarm interest, or could you be up against another buyer who desperately wants the property? When stock is tighter it is vital to get as much of an edge above the competition as possible.
Again, a Buyer Agent is invaluable in this scenario. Buyer Agents will be able to use their experience in dealing with Agents and knowledge of the market to gauge the interest of the property and give their client’s the best chance of securing it.
Take note of the competition
When at open for inspections, take a mental note of the other potential buyers. If you’re looking at a particular type of property in a specific area, you will likely come across the same group of other buyers. They are your competition so try and assess their interest in the property.
If you’re interested in a property being sold at auction, observe the bidding at similar properties as they come to market. Take note of the highest level bidders go to. These bidders could likely be your competition and if you can anticipate how much they can spend you will get a better idea as to how much you will likely need to secure a property above them.
Be prepared to go to the top of your range
With higher demand obviously comes increased competition. To secure property in this situation it is important to be prepared to go to the top of your budget range. If it comes down to a couple of thousand dollars to sign on the dotted line, go for it. It can be well worth it in the long run.
Buyers can often make the mistake of backing away from their property search and purchase if they continuously reach the upper level of their range and don’t go a little bit further to make a purchase. Some buyers will instead prefer to wait for something else to come onto the market if this situation keeps recurring. More often than not this plan can unravel buyers’ chances of securing property. If buyers wait for the right property to come along, it could be likely that the market will move past them in that time and they will miss out altogether. In a market with lower stock levels buyers could be waiting a while.
Buyer Agents will be able to assist buyers determine how much further they should go to secure the property, without paying too much. The Agent will consider the factors such as available stock, buyer interest, and the suitability of the property to fit the client’s brief to help the client establish when and how much further a buyer should increase their offer. This invaluable expertise will not only help buyers secure the property, but also ensure the buyer doesn’t pay too much, which can be a danger when competition is tighter.
To find out how you can secure your perfect property – even if there is less stock on the market – speak to your property professional.