Five Finance Tips

FIVE FINANCE TIPS FOR BUYING IN A HOT MARKET

With MATTHEW ANDREWS, Director, Pivotal Financial

We call a market ‘hot’ when there are too many buyers competing for limited properties, or properties selling at far higher prices than they would have a short time ago. Other indicators can also be a rise in a suburb’s median house price, less real estate advertising, and properties going live on sites like RealEstate.com.au with ‘under offer’ banners already there.

While buying in a hot market can bend the traditional rules of how real estate works, there are a few secret weapons that home buyers can deploy to get into their home faster while sticking to their budget. GET A PRE-APPROVAL – The golden rule of buying in a hot market is to have your financials as organised as you possibly can. When there’s 20+ people competing over the same property, making an offer on a property while pre-approved will help! PREPARE TO COMPROMISE – Many first home buyers make the mistake of approaching their first purchase with rose tinted glasses and get disheartened if they can’t find their ‘forever’ home. Instead, think pragmatically… like a property baron would in assessing an investment. BE AGGRESSIVE – Dithering and ‘umming and aahing’ in a hot market will not do you any favours. Instead, make offers confidently and quickly to show that you’re a serious bidder. Make yourself known to real estate agents. SIMPLIFY THE PROCESS – When buying in a hot market, remember that most sellers are looking for the highest price with the fastest turnaround time and can view certain contract contingencies such as inspections and finance clauses as potential reasons for the deal to fall through. Minimise your clauses to the essentials whenever possible. STICK TO YOUR BUDGET – Don’t fall victim to panic buying. While there’s plenty to compromise on, one thing buyers should not budge on is their budget. This will save you from over-committing in the long term. With some of the more prominent lending institutes approving home loans in under two business days, it’s worth partnering with a reputable mortgage broker to help you make the most of the current interest rates, terms and ultimately finding a pre-approval that’s best suited to you and your lifestyle. The good news is that getting preapproved for a home loan doesn’t have to be stressful, frustrating or time consuming.

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