16 November 2023
Ways to position yourself for a successful property purchase – Approaching the close of 2023, buyers are actively seeking their dream homes before Christmas. Whether rebounding from a sale or venturing into the competitive world of first-time home buying, I experience firsthand how overwhelming the process can be.
Despite the challenges, there are strategic ways to position yourself for a swift and successful property purchase. In the past month, we’ve assisted many buyers, including vendors navigating the buying process.
Here are my 5 top tips for those aiming to purchase on the Upper Northern Beaches.
1. Don’t be shy: Make yourself known to the agent
If you’re interested, don’t hold back — express your interest to the agent. Not all agents communicate efficiently, and if they’re unaware of your keen interest, you might miss out to more vocal buyers. Recently, a client of mine secured a unique property in Avalon Beach by being proactive. I advised him to ask the selling agent this question, “If I wanted to secure this property today, what would I need to do?”
The agent provided upfront information about the vendor’s situation and the preferred sale process. Acting swiftly, he followed the agent’s advice, offered full price that day, and exchanged contracts within 24 hours.
It pays to be clear with the agent about your budget, cash capacity, preferred settlement timing, and whether you’re open to a pre-auction sale. This transparency ensures the agent can keep you informed, manage competing offers, and update you on any changes to the price guide.
2. Don’t be hidden: Register for off-market opportunities
We have many properties listed ‘On the Quiet,’ which means they are off-market and not advertised on wider channels such as Realestate.com and Domain. They can only be accessed through our database and if you are on our radar as a buyer, allowing us to contact you directly about a suitable property.
Case Study: 28 Bilkurra
Last week, I successfully navigated the off-market sale of a property for my client, who had a specific price in mind but didn’t want to go to market. Simultaneously, they sought to purchase a downsized option. Despite a promising verbal offer falling through after a building inspection, I engaged in negotiations with the buyer and the buyers agent. Eventually, I secured an unconditional contract, successfully finalizing the sale of my client’s property.
Balancing the needs of both my vendor and the buyer, I orchestrated synchronized negotiations and exchanges of contracts on the same day for multiple sales. This allowed my client to sell her family home off-market and purchase her new downsizer post-auction, all on the same day.
One property we are currently selling off-market is this house in Bilgola Plateau. It will be open for inspection this week.
51 Kanimbla Crescent, Bilgola Plateau
3. Don’t be un-ready: Have your finances ready to go
Ensure financial readiness for swift property purchases by doing the following:
- Secure loan approval
- Clarify budget limits
- Maintain updated financial details
- Confirm with your bank/broker the speed of processing and be prepared with a cash deposit (usually 5-10% of the purchase price)
- Consider stamp duty and fees in your budget
- Have a conveyancer on standby for a smooth exchange
- Stay in close communication with your broker to avoid delays, stress, and potential financial losses.
I, unfortunately, do see trouble and stress on the other side of exchange when finances are not approved or in order. If a settlement is delayed or falls through there are hefty fees and large deposits can be lost. No one wants this scenario! Be ahead of the game, stay in close communication with your broker, make sure all your finances are spick and span, ready to go so everyone is happy through to settlement.
If you need help finding a solicitor or conveyancer I can send some local contacts.
*Terms to know (see bottom of the article) – Offer & Acceptance, Gazumped, Exchange of Contracts, Cooling-off period, 66W, Settlement.
4. Don’t play games: Turn up at auction to bid
Many properties at the moment are selling by auction rather than private treaty (if not sold prior) so it’s good to be auction ready. Auctions, though intimidating for some buyers, offer transparency and fairness. You can assess the competition, understand your position, and all registered participants have an equal opportunity to bid.
Before the auction, communicate your intentions clearly with the agent to ensure their support in your purchase. Familiarize yourself with key terms such as Reserve Price, On the Market, Passed In, Vendor Bid, and Settlement Date.
5. Don’t be uninformed: Know your market
Stay informed on comparable property prices, recognizing that market dynamics can shift quarterly. Regularly update your research to understand current values, both online and through in-person viewings. This helps solidify your preferences and grasp the factors influencing property prices in the Upper Northern Beaches, from location and aspect to finish quality and neighborhood.
If you do everything in your power and still miss out, don’t worry. Properties are continually coming to market, and these trends follow cycles. Seller’s markets don’t last forever; at some point, they cycle back into buyer’s markets. Today’s market is a great opportunity to secure a property, with more stock to choose from and motivated sellers wanting to move.
If you’re looking to make Avalon home, or sell your property, contact me today on 0424 053 355 or by email jonathan@cunninghamsre.com.au.
HELPFUL TERMS TO KNOW
Contract of Sale – The contract of sale is a legally binding agreement between the owner and the buyer of the property. A contract for sale covers all the legal matters, rights and conditions of the sale/purchase. The contract must contain a copy of the title documents, drainage diagram and a current Zoning Certificate (section 10.7) issued by the local council.
Offer & Acceptance – If you make a verbal or written offer, you are one step closer to owning the property but it doesn’t mean that you have finalised the sale. Before exchanging contracts, the seller may negotiate with other buyers for a higher offer, even if you have made an expression of interest payment.
Exchange of Contracts – Exchanging contracts legally completes the process of buying a home. Up to this point, the agreement is not binding and both you or the vendor have the right to change their minds.
There will be two copies of the sale contract: one for you and one for the seller. You each sign one copy before they are exchanged. This can be done by hand or post and is usually arranged by your solicitor, conveyancer or the agent.
At the time of the exchange, you will be required to pay a deposit.
Gazumped – While gazumping is not illegal it is an incredibly disappointing experience for the unsuccessful buyer. Gazumping occurs when a seller accepts your offer, however before you get a chance to exchange contracts the seller decides to sell to another party and exchange contracts with them. While at times this is outside the agents control a good agent will communicate very clearly your position and what is required for you to secure the property and avoid such a situation.
Cooling-off Period – a standard contract comes with a 5 business day cooling-off period after you exchange contracts. During this period, you may get out of the contract as long as you give written notice.
A cooling-off period does not apply if you buy a property at auction or exchange contracts on the same day as the auction after it is passed in.
If you use your cooling-off rights and withdraw from the contract during the 5 business day period, you will forfeit to the seller 0.25 per cent of the purchase price.
66W Certificate – is a document signed by the buyer’s solicitor or conveyancer that waives all the buyer’s cooling-off rights. This usually happens when the buyer has completed all their checks and due-diligence.
Building and Pest Report – This is a written report on the current condition of a property and possible risks. It’s designed to provide you information about the property so you are fully informed of any potential concerns relating to the condition of the property. Sometimes these have been prepared in advance by the selling agent.
Reserve Price – The lowest price at which the vendor is willing to sell at auction. If the bidding does not reach this number, the property does not have to be sold.
Passed In – If a property does not reach the reserve price, and the vendor does not want to reduce the reserve price to the current highest bid, the property ‘passed in’, meaning no sale is made.
Settlement Date – The date that the buyer completes payment to the seller in full and takes legal possession of the property. The settlement date will be specified in the contract of sale but is typically between 42 days after auction or date contract were exchanged.
