Buying Tips

 

In offering some buying tips we wanted to step outside the square and provide information other people could be afraid to offer.

Is there really another buyer interested?

2 blue men

We can’t completely speak for other real estate practices but certainly in ours we would NEVER refer to another buyer unless it was true.

If you think about it, properties either come on the market at an appealing price, in which case you are probably not the only buyer who has come to that conclusion. Alternatively, the property has been on the market for some time and has had one or several price reductions. At some point, that property arrives at a magic price where it becomes noticed by (probably) more than one buyer.

In these days of internet connectivity, new listings and new prices are conveyed instantly to thousands of people who have their details and requirements registered to generate automatic notification of new listings and new prices.

How do I know I’m being told the truth?

Girl with long nose

The truth is, you don’t and probably never will.

There is a lot of emotion around the job of buying real estate. For most of us, it’s a huge decision and a huge commitment. It also is the culmination of a great deal of thought, research and time to get to the point of a decision. There are very many honest and ethical agents and as in any industry – and life generally – there are always going to be some who aren’t.
In our experience, most of the anxiety surrounding a purchase comes from two sources:

  • The buyer is not kept informed on the progress of the negotiation or of other factors that have come up and have not been disclosed

    Neil Jenman is a renowned consumer advocate who receives huge numbers of complaints about agency practice and his observation is that lack of communication is the most frustrating and common source of complaints. If you are dealing with an agent, perhaps a good approach would be to highlight this issue early on and make the point that prompt communication of anything affecting the purchase will be more welcome than for the information to be withheld.

  • The fear of paying too much

    Sellers are fearful of selling for too little, buyers are fearful of paying too much. That’s fair enough and something that applies to the purchase of just about anything. In your real estate purchase, this fear is what causes buyers to turn the purchase into a determination to “bag a bargain”. That’s probably fair enough too, but it creates an environment where a buyer with less fear or more experience often jumps into the gap in price created by the bargain hunter. Even when the bargain hunter responds to the competition with a better price, the seller chooses the buyer who was not trying to “steal” the property from them. We see buyers get totally obsessed with the negotiation process and it seems all of the emotion around the purchase focuses on the issue of price. Wouldn’t the more important focus be to secure a property they’ve spent so long looking for and may own for five, ten, fifteen years or even a lifetime. We see the immense anxiety around a negotiation but we also see the successful buyer picking up the keys to their new home with never a thought about the price they paid. It’s more about a big smile and a lot of excitement. Meanwhile, the buyer who was determined not to pay that extra little bit to seal the deal may well still be out house hunting for the perfect bargain.

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