All the experts are out………….. In the media, agents, dinner parties telling the property buyers and sellers what is happening, but when you read between the lines they are all sitting on the fence, because no one knows where we are heading. The ship is in rough seas, missing a rudder and the propeller intermittent and dependant on unknown stimulants…
All we know is that at the moment in the current property environment there is some very good buying relative to the prices that were achieved last year…
If you are buying, and we recommend buying now, make sure you understand what you are buying, how it affects your hip pocket and that you can hang on for the ride - it is going to be bumpy and sure to be lots of fun.
As has always been our advise, if you are buying a property make sure you are in a position to tough out any likely down turn in values, you can ride out the big waves and plan never to be in the position where someone else is in control (a bank) and calling the shots that will be detrimental to your well being and wealth in the long term..
Our motto-“get rich slowly,” hold for the long term and only buy what you can afford to hold.
To touch on the current sales environment we are seeing a move from auctions to private sales.
In some cases this has been forced on the agents by the failure of an auction to work.
The smart agents are now not taking marginal properties to auction; they are instead starting with a private sale. Now is the time to make sure you appoint a good old fashioned salesman to sell your property, one that knows how to put that difficult deal together.
The good agents are going back to the old days and only auctioning properties that are appropriate to auction. Those properties are ones with scarcity, location and broad market appeal. Any properties East of Warrigal Road, an owner would have to look very seriously at the options they choose. Properties with first home buyer appeal(usually budget driven in the outer suburbs) need to be private sale, as should be main road properties. Properties north of Bell Street in the Coburg - think very carefully before you auction.
An auction in a marginal auction location is generally only good for the agent who wants marketing exposure & it allows the property to be brought to a head and put pressure on the vendor to accept what is offered………. “This is the market, it’s the best you’ll get, you have to take it” ..Blah Blah
With private sales be very careful about the advice given. It is essential that the price guidance is accurate and in line with the current pool of buyers expectations. Very often in a private sale campaign the agent will get an early offer from a prospective buyer. Make sure this offer is in writing and in the current climate this offer can often be the best one you will get, so the initial advice is critical to your decision making.
If you miss the early offer a vendor can sometimes be left waiting for months before an equally good offer comes along. We are hearing many stories at the moment of vendor’s wishing they had taken an offer submitted several months ago. Get some unbiased and independent advice before you proceed.
David McMillan
Domain Property Advocates
