Tips To Take Advantage of the Real Estate Market Crash
There is a real estate market crash providing many opportunities for savvy homebuyers. According to the experts, for another 6 to 12 months, the property prices will continue to fall in Sydney and Melbourne.
It’s definitely great news for both investors and first time home buyers. However, it is important to act smart and act fast to find the best deal.
Here are some of the tips to help you while buying a home in a falling market:
- Know your property seller
If you want to buy your property below the market value then you should know your vendor. In order to understand the reasonable market value of the property, identify for how long the property is there in the market.
Once you will be able to understand the market and state of mind of your property seller, you will be able to get the best value of the property. If the property is advertised for more than six months, then consider making a lower offer on a property. The vendors willingly consider lower offers as they think that the interest rate of the buyers has passed after six months. Contact a real estate agent, if you’re not entirely happy with the vendor’s asking price for purchasing the property.
- Set yourself a limit in auctions
Many times, people get caught up in the show and makes the wrong decision. Make sure, while buying the property keep your head calm, and don’t bid more than your budget. Are you wondering, how to set the limit? Actually, you can bid according to the amount you have as a saved deposit and the amount bank is ready to lend you.
- Inspect numerous properties
To buy the right property at the right price, do the legwork and inspect numerous properties. If you are not satisfied with the vendor asking price then don’t stick to the same vendor. The market is experiencing a slowdown and it is better to choose a vendor who is willing to drop their asking price.
- Make sure to get pre-approval
Getting pre-approval for the home loan in Australia is a wise decision. It is not sure that the lender will approve your loan or not. There are many cases when the lenders reject the home loan including:
- When buyers have no genuine savings for home loan and the deposit is too small.
- When the credit score is low and credit file is unacceptable to the lender or bank.
- When the property is not acceptable to the lender or bank.
Thus, make sure to get the pre-approval of the loan before you go out in the market to search the property offers. Once you get the pre-approval, you will be able to negotiate with confidence in your borrowing power.