If you are looking to buy property in Australia, you must know that the demand is high, inventory is struggling, and values are rising higher to keep it up. This creates a property hotspot in several areas throughout Australia.
Whether you want to buy property in Australia, has become difficult because homes remain available just for a few days rather than weeks or months. Even without touring the homes, people make offers well above the asking price.
Not only this, the buyers are leaving no stone unturned to convince the seller to accept their offers. Some of them are going a step forward and offering to name a child after them. In this crazy market, we suggest you keep your eyes open when you buy property in Australia from the seller because nothing is guaranteed.
For that reason, Belle Property experts explain how to win the bidding war sensibly when the market is hot.
Exhibit Financial Security by Putting Down Extra Cash
When bidding to buy property in Australia, the amount of money you put down can greatly impact a seller, especially in markets where the amount you put down is public. When you put down the best offer, it matters a lot because it speaks about your financial strength to avoid credit risk.
For example, if $500,000 is the offer price for a home, a buyer putting down $300,000 will be viewed as more favorable than another buyer putting $150,000 in cash. The sellers with several potential buyers want the surest bet possible, which means people who buy property in Australia and offer less are likely to fall apart on loans not being approved.
Keep Your Finances in Order
Plenty of financial tasks needs to be checked before buying property. It might be possible for some of the tasks to take time; therefore, be prepared earlier. First, review your credit score and report regularly for accuracy.
Further, save a good amount for the down payment to avoid the private mortgage insurance (PMI) charges. You may need some extra savings to cover the appraisal gap on the property you want to purchase.
Get yourself approved for a mortgage well before time. In a seller’s market, it is not enough to be a pre-qualifier. Rather, pre-approval is more helpful to gain the seller’s confidence.
Put a Strong Offer to buy property in Australia
In a hot market, the realtor encourages a full asking price offer or close to it. Sometimes, they ask for more in some cases. As a rule of thumb, the highest offer generally is of most interest to a seller.
But the solid offer can also be noticed and score the win. The more you offer against the property you are interested in, you will get a chance to become a successful bidder accordingly.
Once you find the property of your choice, do not wait for it to open for inspection. Call the agent and view the property as soon as possible if it falls in your criteria. Also, it is suggested to make the first offer without any hesitation.
Although the seller will have all the right to choose the best offer, you just give him a chance to consider your offer.
Biggest Wave of New Homes in Australia
According to PropTrack Economist Angus Moore, “property market activity continued to soar in November. New listings surged 12.1 percent month-on-month, marking the third consecutive month of double-digit growth.”
New listings across Australia’s capital cities reached the highest level in a decade. Mr. Moore also added, “We may see a busier December than typical as activity spills later into the year, with sellers who were held back due to lockdowns gearing up to make a sale before Christmas.”
If you are looking for the property that suits you or the best real estate agents in Australia, visit Belle Property today.