The Australian Bureau of Statistics has seen an increase in real estate activity throughout Australia during the last year proving that home buying and selling activity has started picking up since 2020 and market forces hinting at favourable cues for buyers.
The real estate industry has leveraged technology to take advantage of online auctions, remote, and virtual walkthroughs when listing the property to keep real estate businesses going even with restrictions that prevented buyers from being physically present at the property site.
Most real estate agencies have taken advantage of online applications such as Facebook Live, Zoom, Discord, Lark, and Google Meet. Prospects can now go on virtual video tours and live streams of online listings.
Augmented reality or 3D walkthroughs are made possible without going to open houses and inspect the property from the comfort of their homes or anywhere else. With live auctions a common activity online, everyone is granted the opportunity to participate and take their claim on their dream property.
In the last decade leading up to 2020, Australia has experienced home buying purchases reaching an all-time high. During the first quarter, one in three home purchases were recorded in the market. But before making your big decision, here are some important and practical buying tips you need to consider, whether it’s a private treaty, direct sale, or auction.
Do your research
When planning to purchase in an auction, it is wise to do your research to find out what the property’s worth and how much you are willing to bid.
This will help you evaluate how much you can set your budget for the auction and give you an idea of when to stop your bid when the competition is stiff and move on to your next options.
Avoid following the practice of bidding with a round number. For instance, when a bidder stops at $500,000 for instance, and you offer $501,000 for the winning bid, you are likely to get the winning bid and minimise your risk of bidding over your budget.
The same concept applies if you want to secure a home loan or mortgage. Due diligence is critical if you want to avoid making regrets for a home purchase gone wrong because you failed to do your research.
Observe and study behaviours during auctions
Just like poker, bidders are no different from players who often give away their winning chances showing tells to opposing players. Similarly, the same behaviour often applies during property auctions.
Researching agents or auction agencies who often participate in auctions can be a smart way to get the best deal out of auctions.
Check for property documentation and conditions
Check out property details such as documentation and conditions before taking the next step. Similarly, this can be done online days before on properties you have set your eyes on for auctions, such as the contract of sale and deed to ensure that everything is legal and in order. Also, arrange with your mortgage broker or lender for financing options should you win a bid and push through with the sale.
Remember that once you have made the winning bid, you must settle legally referencing your bid offer. Some lenders or banks issue a letter of authority pending your loan approval that stipulates the amount you are allowed to bid.
Negotiate for terms
You can negotiate for terms or other sale conditions with the seller. For auctions, there are agencies or property owners who are open to discuss the terms of settlement, deposit, and chattels.
These may not be limited to your desired options for sale should you be awarded the winning bid, but is a great way to test the waters if the seller is sure and confident about the property for sale.
If the seller agrees, it’s an indication the vendor may not be too confident regarding the actual value of the property. If they refuse, there may be interest from competitors.
There are a lot of factors that influence the real estate market and before you make any decision it will be worth carefully looking out for changes in consumer and market behaviours.
Value-based purchases
The real estate market will continue to keep the wheels turning as usual. It will continue to provide you with options to consider taking the opportunity to wait for a value-based opportunity.
Take note that properties are assets that are either collected or sold, so you may come across one that will suit your liking- it’s just a matter of time.
Low-interest rates
To protect the economy, governments will push to drive down interest rates to boost economic activity to make buying or selling a property more accessible and affordable to buyers.
In Australia, buyer sentiment has always been strongly influenced by interest rates and is expected to continue in the next couple of years or so.
Consumers and market forces are adapting to the trend
Technology has paved the way for the real estate industry to expand its reach to broader consumers anywhere. Video inspections, online property auctions, and virtual or augmented reality technology have increased the industry’s capacity for adaptation and utilisation that will make it thrive in times of uncertainty.