At Smartline Rockingham, we saw a lot of home loans go out into the Rockingham, Baldivis and Kwinana areas in 2013, early this year and we expect to see even more during the next months. This means that you may have to work harder to find a better deal on a home—increased demand always produces higher prices.
Here are some tips to maximise your dollar when buying a home in a hot market.
Put Your Team Together
It starts with your mortgage broker because we have access to multiple lenders and can find you the right loan for your situation. However, you also need to have a good agent, a conveyancer, an accountant and an inspector available on a moment’s notice. In a hot market, there are usually two or more buyers competing to buy any really good property.
You will want to register with as many major agencies as you can. Often, you will hear about properties before they come onto the market. A home may even be sold without even having an official public open.
If you find yourself competing to buy a house, it’s because that property is worthwhile. It will serve you well when you buy it and should fetch a higher price when you decide to sell it. Competition is good in this case.
Stretch Your Budget
We aren’t saying to leave yourself in a weak position but you should always be on the lookout for creative ways to be able to afford “more house.” You may want to consider an interest-only loan for the first few years. Also, decrease credit card limits so they don’t go against your borrowing capacity.
Show Interest Immediately
If you are interested in a property, tell your agent immediately. Many properties sell within one week in a hot market.
Look for Similar Suburbs
Look for neighbouring suburbs and see if you can find a lower price. You can also look for the same lifestyle elsewhere—flexibility is the key.
Don’t Bother with “Lowball” Offers
If you don’t make a bona fide offer, someone else will.
Call Us Today
Call Smartline Rockingham to get started with pre-approval: (08) 9527 1800.