We all know the housing market is moving fast right now and when you find the right property, chances are, you’re not the only one who thinks so. So how do you go about securing ‘the one’ amongst what is sometimes fierce competition?
Firstly, and obviously, remember the golden rule of non-attachment when house hunting. Getting overly emotional about a property can be recipe for spending more than you planned.
Secondly, always have your finance pre-approved, your lawyer ready to go and your building and pest inspection company lined up. But you know that, right?
When making an offer in this market you must always consider that you may not be the only one doing so. In the biz this is called a multiple offer and when this happens, the reality is you shouldn’t hold out for a bargain.
Your first task is to talk to the agent and tell them you’d like to make an offer. Don’t be fearful about this step. You need to reveal your hand at some point. When more than one offer comes in for a property, the agent will have each buyer complete an acknowledgement of multiple offer form.
When it comes to multiple offers, you get to make your best offer once, and once only. There will be no counter-offer when multiple offers are placed on a property.
Don’t hope for negotiation. Offer your highest price.
But here’s where it gets a bit tricky landing your target. With the market moving as it is, many properties will be listed as, price by negotiation. This will tell you that the agent is uncertain of the property’s value and is gathering direct market feedback.
Don’t let a listing of price by negotiation put you off. Be as educated as you can be about prices in the area and put your best offer forward.
Also know that agents are obliged by law to submit all offers to vendors and sometimes vendors will choose an offer not solely based on price, they may choose a family over an investor, for example.
So if you find the perfect place, grit your teeth, make an offer and get on the multiple offer ride. You never know where it may take you.
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Hicks Real Estate Team
Hicks Real Estate is a Brisbane based, full-service real estate agency supporting buyers and sell as well as renters and property investors. With almost 20 years experience in the local market, we are the real estate experts you can rely upon.
