BRISBANE BUYER'S AGENT
Auctions - Do I buy before, on the day or after the auction?
There are many considerations for a home owner when they decide to sell their property, whether to use private treaty or an auction.
As a buyer, ultimately if you see a home that is perfect for your needs and you've been on the hunt for many months, you should not be perturbed by either method of sale. The best advice I can offer all of our buyers is just be ready for an auction, because this will also put you in the best position to buy in any situation, including a private treaty transaction.
Here are some of my tips on buying at auction
- Research, research and more research... along with your own findings, every professional agent should be able to help you with advice on their specialty suburbs. Don't be afraid to ask an agent for a catch up to talk about what has been happening with prices and behaviours in a suburb that is their specialty.
- Get your finance ready! Ask your lender or broker, 'If I saw the perfect property today, can I attend an auction and bid confidently?" Whether auction or private treaty, more often than not conditions you offer the seller can be the decider. This can put you in a strong position if a property is to be sold before auction, often the case as a result of high interest. This scenario is becoming more regular in today's market. Really, this is no different than buying in a private treaty negotiation, other than you need to be finance ready and in a competitive position as a buyer.
- Review the building and pest inspection reports thoroughly - often the best thing about a home being sold by auction, is the seller generally obtains an independent inspection report. Don't be afraid to ask the agent if you can call the inspector to ask any questions about the home if there is anything you are unsure about - be informed. If a seller is wiiling to commission a building and pest report, they should be willing to allow you to discuss that report with their inspector.
- Ask your agent for a pre-auction meeting as a buyer. Catch up with your agent before auction day and ask for as much advice as possible. Don't be afraid to let the agent know you have genuine interest, ultimately the vendor sets a reserve price on the day and if other buyers are interested, competition is unavoidable in any case. Just build a respectful relationship with the agent, I can reassure you that this can really help when negotiations get tough.
- Don't be afraid to bid. More often than not, buyers register at auctions and simply sit back and wait for others to get bidding started. If you are serious, have a go! Ultimately, will have your price in mind, bid strong and confidently. You can never buy a property without making an offer, placing a bid is essentially placing an offer.
- Be patient. There are occasions when you as the buyer simply needs more time to consider your position on price, so may the seller. The general misconception about a property that is passed in at auction, is the end price is all the market is prepared to pay for a home at that time. We always respect that it is a huge decision to both buy a home and to sell a home. Time plays a very important role when big decisions are being made. If you are genuinely interested in a home that has been passed in and need more with your decision, just be up front with the agent and seller and feel confident asking for time.
I welcome a catch up with you at any time to offer my advice on how to get involved in an auction sale and be successful securing your dream home. In many instances I have also acted on behalf of buyers to bid at other agent’s auction, I am always available to help you!
SHOULD I MAKE AN OFFER BEFORE AUCTION?
So you are looking at purchasing a new property. Congratulations! That is an exciting and rewarding endeavour. However, there is so much work that goes into making this decision a successful one, and most of this work takes time, money and lots of leg work. That’s where a Buyer’s Agent can make this task a seamless, stress-free and successful long term property investment for you.
Before you engage a Buyer’s Agent though, there are several things you need to do to make it a smooth and straight forward process. By doing these few simple steps prior to sitting down with your Buyer’s Agent, you can save more time and effort along the way.
Seek finance approval.
Have a chat with your bank/ mortgage broker and ensure that all your finance approvals are in place. This speeds up the process when it comes to putting down a contract and it also makes it far more appealing to the Vendor to have a clean (unconditional) contract.
Having your finances in place are especially critical when you are purchasing a property that is going to Auction. In Queensland, the terms of an Auction sale require you to bid on an unconditional basis. This means that it is not conditional upon you obtaining finance, or the purchase being subject to the sale of another property, as well as it not being conditional upon a building and pest inspection. There is “No Cooling Off” period with an Auction sale so you must settle the contract even you change your mind or can’t afford it!
Identify the area where you want to buy / live and be realistic.
Most home buyers already have a fairly good idea of the suburbs and surrounding areas that they want to live in, however you also have to be realistic with your expectations as far as price and style of housing you are after. Generally speaking, people try to live in reasonably close proximity to schools and the sporting facilities etc. that your family are associated with, or at least within accessibility to public transport that connects them to these places.
When it comes to buying property, we all want more than we can probably realistically afford, but it is no good looking at purchasing a 4-bedroom family home in Ascot if you don’t have a budget that meets that market. As a Buyer’s Agent, it is our job to educate you as to what you can afford in your chosen area and if that’s not hitting the mark, then direct you to other areas close by where you can be successful in purchasing your new home or investment.
If you are unsure about where you want to live, then take a drive through some suburbs on a weekend, and of an evening and at different times of the day to get a feel for the community and what it offers. Does it have cafes, supermarkets, restaurants and anything else that you find essential in your day to day life?
If you are too busy and don’t have the time to familiarise yourself with the different areas and suburbs of Brisbane, then we can help you by driving you around and showing the best attributes of the area.
By streamlining this process prior to engaging a Buyer’s Agent, it will assist us in making your property purchase a more timely and effective process.
If you are moving from overseas or interstate, and are not familiar with the new city you are moving to, then this is an essential part of a Buyer’s Agent service. At Location One this is where we help acclimatise you and orientate you to different areas of Brisbane. We can sit down with you and find out what is important to you and your family and identify areas that meet your needs.
Know what is important to you.
Whether you are a home owner or an investor, it is important to identify what is most important to you when purchasing a property. This is one of the first questions a Buyer’s Agent will try and identify as it will drive the search for your particular property.
As an Investor, is it paramount that you maximise your long-term capital growth or is it positive cash flow that you are seeking with your investment?
Positive Cash flow involves investing in properties that offer a rental income that is greater than the total expenses (mortgage, maintenance, property management fees etc.) of holding that particular asset.
Capital growth is the increase in value of that particular property over time.
As a home owner, it is important to identify whether you are looking for something new or established, and also whether you want it fully renovated or you are prepared to do some hard work and bring some new life into it. Perhaps you are wanting to land bank now and subdivide later? These are important questions to ask yourself and have a clear perspective so that we can move forward smoothly.
Identify how your family lives and what your new home needs to have.
Do you have a young family or a family of teenagers that needs space and separate fall out areas? Do you want a pool or is it more important to have room to run? Do you want all the bedrooms together or your guest room set apart from the family? Are you getting older and wanting a home all on one level? Is it important to face north east and catch the breezes? Do you want a small block or a sprawling yard to mow? Do you like a modern build or does the Queenslander home appeal to you?
Considering how your family works and the needs of your tribe will ultimately make it more streamlined when we go searching for your new home. Are you flexible with these considerations or are there certain things that you must have? By listing out your top priorities it will assist us in finding your new home sooner.
Research your Buyers Agent
Even though Buyer’s Agents are becoming more accessible and more often used in property transactions in Brisbane, it is still important that you do some homework and ensure that the people working for you are the best people, to give you an accurate and unbiased view of the market and what is available on the ‘whole” market not just on their books! Many Real Estate agents often act as a Buyer’s Agents, however they are only acting in their best interest - as they are only going to tell you about the stock that they currently have for sale - not what is available across the whole market. Remember a Selling Agent is working for the Seller – they want to achieve the highest price for their vendor and ultimately a bigger pay packet too!
Ensure that your Buyer’s Agent operates independently of all other agencies and developers and that they receive no commissions or “perks” to attain their business. This ensures that they have your best interest at heart, not their hip pocket.
It is critical to ensure that your Buyer’s Agent is fully licenced and registered with the relevant Governing body (such as the Real Estate Institute of Queensland etc.). This ensures that your agent is not only qualified, but that they also remain up to date with regulations and attend regular professional development. At Location One, every client is managed by one of our Directors where they receive the utmost care and attention - So that you can relax knowing that you are getting a Buyer’s Agent that is fully qualified, equipped with years of local industry knowledge, the most up to date technology and resources - and that they have your best interest at heart.
Both of the Location One Directors have not only successfully renovated, bought, sold and held a solid portfolio of investment properties themselves, they have also helped many people find their dream home / property. It is their passion and their mission to help people buy great property at great prices.
Give us a call, we can certainly look after all of your property purchases and make them sound investments.