You would be forgiven for thinking that a buyer’s advocate is somewhat redundant in a market favouring buyers. And yes, today’s market makes it significantly easier for buyers to secure a property and for a reasonable price, but is the process that simple?
The art of a successful negotiation is now more important than ever. Over previous years, the vendor has had the upper hand with runaway auction results, multiple bidders and private sale stoushes. The current environment is one of copious auction pass ins, agents slogging to achieve mediocre results and anxious vendors feeling the squeeze of the market across most sectors. Vendors feeling the squeeze can be easily swayed into accepting a low offer. On the flipside, they can be dogged with their desire to achieve prices as seen in years gone by, particularly if they bought in a hot market.
As buyers’ agents, one of our main roles is to negotiate the successful purchase of property for our client’s week in week out. Having worked in all different times of the property market cycle, we are experts in negotiating a favourable result for our clients whether it be a private treaty or auction. Auction pass ins are a very common occurrence at the moment, with clearance rates in the 50-60% region and vendors expectations are slow to keep up with the market. Knowing how to read the auction process, other bidders and understanding the true current value of the property is something only a minority of the general public can truly do, so engaging a property professional to save you time and money is not only logical but essential.
Asset selection is THE most important part of the buying process. We all would like to think we can spot a top-quality property as opposed to a subpar property a mile away, but it takes years of experience and training to identify the intricacies of a truly standout investment. Yes, there are less properties on the market as discretionary vendors are sitting on their hands waiting for a better time to sell, but the overall numbers of stock are still quite high. With an abundance of low quality properties currently on the market and buyers (who are able to secure finance) wanting to capitalise on the buyers’ market, it can be easy to rush in impulsively. Just because there are bargain properties on offer, don’t be fooled into thinking this will translate into a windfall over the long term.
Enjoy the buyers’ market buyers, just don’t take your eye off the long-term fundamentals of top quality property!