Our 3 top tips for getting ahead in a tough market

If you are hunting for property in Taranaki, you will no doubt have seen (and experienced the overflowing open homes) that the market is the busiest that it has been since 2004.

This could be incredibly off-putting, especially if you have been in the market for a while or even in your second, third, fourth (?!) multi-offer - you could be forgiven for thinking that buying property has become impossible.

In our experience, this couldn’t be further from the truth.  There are still plenty of opportunities out there - this post will hopefully help you get ahead of the rest.

Below are our top three tips for buyers in a busy property market.

1.           Set your requirements

There is a huge variety in the type and quality of housing out there – around 100+ properties sell in New Plymouth per month and not everything that comes to market will be for you.

To reclaim your weekend (unless you enjoy attending open homes which believe it or not, some people do…) it pays to know what you are looking for – from those features a property must-have', along with your deal-breakers.

Not only should this reduce the number of open homes you attend each week but it also allows you to compare ‘apples with apples’ as you get familiar with the kinds of properties that you most realistically could end up buying.

This advice is obvious – yes - but it also allows you to know when a property ticks the boxes and if you like what you see, you’re ready to jump into making an offer quickly, while others are still ‘thinking about it’.

2.           Get Pre-Approved

In a competitive market, your offer needs to be as ‘attractive’ as possible.  Generally, there are two ways to make an offer attractive; either through a high price or by offering few (if any) conditions. 

In our experience sellers are drawn to accepting offers with few if any conditions or where there are conditions, then if they can get an idea of how likely those conditions are to be confirmed.

While this might seem counter-intuitive (i.e. why would someone accept a lower price for their property) – sellers tend to like certainty that their property has sold.

So, what’s the advantage here – it is to arrange pre-approval before you start seriously looking to buy and communicating that you are pre-approved when talking with agents.

In our experience, finance is the most common reason for offers falling through. Showing the vendor that your bank has offered (in principle) to lend will make your offer more attractive – it is also a huge help in helping you set a realistic budget. 

3.           Don’t wait around

You’ve found a property that meets your requirements and is within your finance pre-approval – other people are interested, and you want to make an offer…

Do so quickly – do not wait around – this only bides time for others who are not as prepared as yourself.

To make an offer – contact the agent (or seller if the property is being sold privately) and let them know that you are interested in doing so.  The agent will ask you for some basic details (name, your lawyer’s details) and then send through a Sale and Purchase Agreement. 

You may also get asked for other details like price and what conditions you want to be added.  We tend to recommend keeping these details to yourself for now – your lawyer can add these into the agreement before you sign.

We always recommend getting your lawyer to look through any agreement before you sign – this is even if the agent adds a ‘solicitors approval’ clause – which can be difficult to enforce and problematic to rely upon. A good lawyer should be able to look through an agreement quickly, as long as you give them a heads up that an offer is on the way. 

As you will have figured there is a bit to buying property and while it may seem confusing at first – it does not always need to be so. Goodwill Law is here to make your experience as pain free as possible.

If you liked the above and want more tips on how to buy property – then keep an eye out on our blog and give us a like on Facebook or follow on Instagram.

Stay safe out there and happy hunting!