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Capricorn Life | Buyers Agent

Rockhampton, Gladstone, Mackay, Airlie Beach, Emerald, Bundaberg, Yeppoon, Agnes Waters, Whitsundays

CENTRAL QUEENSLAND

1800 543 328

24/7 Customer Support

Mon - Fri: 9:00 - 17:30

Exceptional Customer Care

Before you step foot into any property market the number one thing you need to establish is what type of market are you in. Once you establish the market type it allows you as a property buyer to create a buying strategy.

When it comes to sellers’ markets buyers can often struggle due to high levels of competition, fast transactions leading to them ultimately missing out on their dream home or desired investment.

Here’s the Life Buyers Agency top three tips after purchasing 10’s of millions in residential real estate during seller’s markets.

Between 2020-2021 Australia experienced an unprecedented event in COVID19, leading to one of Australia’s biggest seller’s markets.

This was an interesting time where demand soared across Regional Queensland, and it became a buying frenzy in many of the popular lifestyle destinations and suburbs.

This was a period when having a buying strategy was crucial for the Life Buyers Agency team. Furthermore, across Regional Queensland we now face extremely low levels of supply and strong demand ultimately resulting in a current sellers’ market now in 2023.

We’ve learnt many lessons during these two periods through trial and error, so you don’t have to. Let’s dive in.

    1. It’s not just about having the highest price, think terms.

One of the key things we learnt during COVID19, and the current low stock environment was that often you didn’t need the highest price to be successful. Every seller has there own unique their own unique circumstances. We found that getting a good price was an important factor, but it was when having the right terms that aligned to the seller’s circumstances which got the desired results in a seller’s market.  For example, we purchased many properties in a multiple offer’s situation – in competition with 5-10 other buyers where our price was 10-15 thousand dollars lower. 

We were successful because we offered terms such as long or short settlements, rent backs, and even offerings to assist with relocation fees. So, in a sellers’ market if you ask the agent the right questions to get context around the seller’s situation, then you can massage your offer in a way that may cater to their situation and ultimately be the offer they accept even if it’s not the highest price.

    • You need to be fast

During a sellers’ market properties rarely sit on the market longer than 7 days. You only have a short period of time before properties are snapped up and under contract therefore its essential that during a seller’s market you are prompt. What we learnt was that generally after the first open home most properties in a sellers’ market would generate offers and usually one of those is accepted after the first open home. There are also other isolated incidents where properties would go under contract before the first scheduled open home and its usually because someone offered a very attractive unconditional cash-based offer above the list price or seller’s expectation. So as a buyer you need to have visibility of properties as soon as possible. 

This means setting alert notifications on real estate dot com for new listings, subscribing to agencies databases for alerts or in regular contact with real estate agents. This will allow you to put the property on the shortlist and decide to attend the open home, if you don’t have those systems in place, you may be to slow and ultimately miss out. What we also learnt was that you needed to have a team mobilised as well to ensure your offer process is attractive, swift, and fast. For example, having a conveyancer mobilised and ready to review a contract before you sign it, a building and pest inspector that could do an inspection quicker than your average 14 days. All these little aspects can expedite the process and increase your chances of a successful offer.  Below is a property we purchase after the first open home. 

    • Understand the price trends

In a sellers’ market properties are generally selling above the list price because of the high competition and buyers trying to outbid each other. What we’ve learnt is that price trends emerge within certain property types and suburbs meaning most homes sell within a certain range over the list price. Now, if you are a buyer and you cannot see these trends it can be bad news. We have seen many buyers put in offers 30-40 thousand dollars under the trend ultimately missing out. For example, during COVID19 we established that in one Regional Queensland suburb most properties that came onto the market sold between 30-45 thousand over the price guide, resulting in a clear trend overtime. 

So, our offers were always within the ballpark because we understood those trends. The best way to establish and understand the price trends is to capture data around what properties are listing for and then selling for. You can attain this information from Core Logic or even speaking directly with agents. This will give you the necessary insight needed to understand the price trends and better navigate a sellers’ market. Below is an example of a property we purchased that wasn’t the highest price but best terms. 

If you need help navigating the sellers’ market. Please book in a no-obligation free call.

Troyson Bassani

Owner & Head of Research

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