But how do you do that?
It all comes down to planning.
Research and Planning
You need to do lots and lots of research! The numbers don’t lie, and you need to have accurate historical data to make informed decisions. Some areas you need to cover include:
Median price in the suburb that you are investigating – past 12 months, five years and ten years
Track property sales in the targeted suburb. Which ones are going to auction, which is being passed on. Ask for price guides from agents. (Keep a closer eye on comparable properties)
When you are viewing a property, find out what it last sold for, when and how long it stayed on the market.
Consider a buyer’s agent
A buyer’s agent is on your side. They are trying to get the best deal, and they take the emotion out of it all. Send the agent to auctions to ensure you don’t get caught up in the excitement and go over-budget. Buyer’s agents are experts in the areas you’re looking at, and from their experience, they will be able to give you a general idea of what a property is worth.
Make an offer
Sometimes you might want to put in an offer before a property goes to auction (if that is where it’s going). Some vendors may want to skip the auction stress altogether and jump on your offer. Have a good negotiation strategy – not offering your top dollar first off is a good move.
Know when to walk away
There is always going to be another property around the corner. So if you miss out on one because it’s more than what you can afford, don’t worry another one is on its way. Plus, you never know, the vendor may not be able to sell it for their asking price and may get back in touch.
Bargains aren’t easy to find but they’re definitely out there. Have you snagged any good deals lately? Let us know in the comments.