Play games with the selling agent
People think that real estate agents cannot be trusted, but this is certainly not always the case. Regardless of whether they are honest or not, they are professional players in this game and most buyers are amateurs, so it’s not a level playing field. They know the rules of play and you are likely to get caught out if you try to get clever. Here is a guide for investing in property for beginners.
Make an offer too quickly
It’s easy to get carried away when you like a property and the open house is swarming with buyers but don’t panic and make an offer straight away. Ask for a contract and the agent will know you are interested. Save your offer until you’ve done your due diligence and are ready to sign on the dotted line.
Take agent quoting at face value
Regardless of legislation, agent underquoting is common practise and only novice buyers believe that the price guide is a true indication of ultimate sale price. But it’s equally naive to apply blanket rules to agent quoting like “add $100K” or “add 10%” because not all agents follow a single formula.
Make a low offer when the property is clearly worth more
Don’t be scared to offer the asking price if the property is worth it – somebody else probably will if you don’t, then you could find yourself having to pay more than the asking price if you want to buy it. And don’t bother offering less than the quoted price in an auction campaign. It’s a total waste of time and you won’t find anything out that you don’t already know.
Go to auction without first deciding on a maximum bid You need to set your upper limit before you start bidding, not towards the end of an auction where the fear of missing out is greatest. People pay way more than they should by getting caught up in the emotion of it all. This is a huge consideration when investing in property for beginners.
First published:- 18th Jun, 2015
Good Deeds buyers tips are intended to be of a general nature. Please contact us for advice that is specific to your individual circumstances. You may also need to get advice from other professionals such as an accountant, mortgage broker, financial planner or solicitor.