SNAP UP A BARGAIN, WE’LL SHOW U HOW!
Forget bungee jumping, 4 those of us that have ever nabbed a fab bargain, u know how it makes u tingle from head 2 toe! So, how do u unearth a real estate bargain? We’ve thrown together some very useful tips bargain beauties on just how you can accomplish that mission.
1. Keep a sharp eye on what’s around town
2. Scour the public trustee, deceased estates & mortgagee sale websites
3. Check out if the property has any renovation potential
4. Understand the development potential
5. Ask questions, lots of them!
6. Find out how long the property has spent time on the market. The longer a property has been for sale – the more chance you have of picking up a bargain.
However, sometimes this is not always the case! A property that has been on the market for a long time but whose asking price has not changed is unlikely to be a bargain!!! This indicates that the vendor is not willing to budge on their price. On the other hand, if you see that the asking price has continually dropped over a period of time, your eyes should start to light up as this is a sign that the vendor is flexible and could be willing to negotiate as they have to sell. Exciting huh?
When people are forced to sell, due to a death or mortgagee sale, the property can often sell for less than it would under normal circumstances.
Sometimes a deceased estate can be off putting to many potential buyers. The property is often not presented in its best state as it may have been vacant for a period of time and the house has a musty smell, the garden is overgrown and the faults of the house are very evident. In the end, the sale price will be determined by how quickly the beneficiaries are keen to receive their money.
In a mortgagee sale, the bank has a duty to try and achieve the best price they can. This is so that it can recoup its money and then the vendor can keep any funds that are left after all debts have been paid. However, in a buyer’s market, which is what we are currently experiencing, it is the buyer that will determine the final sale price, not the seller.
Forced sales will often result in properties selling at lower than expected prices. However, low prices don’t always mean that it is a good buy!!! For example, buying bruised fruit at half the normal cost doesn’t represent a bargain. Nor does buying imitation top brand names at a fraction of the real cost. Buying something cheaply doesn’t always represent good value. Take note folks.
Bargains are often bought because other people DON’T see the potential of the property. Most people will walk through an old house and only see the peeling wallpaper, ugly carpet and an old fashioned kitchen. Renovators will see an opportunity to paint the walls, rip up the carpets, polish the floorboards, expose the authentic fireplaces and put in a modern kitchen. Many people choose not to see the opportunity as they don’t know how to renovate and think that the costs of a makeover are too prohibitive.
Most people will drive by a property and see a run-down house on a large block of land. Those who are familiar with property development and know the rules and regulations of the local council will see a unit site. To the novice it may seem daunting at first to contemplate building units, but it is just a matter of confidence. Knowledge will build your confidence. You only need to know a little more than the rest to be able to pick up a bargain.
Ask the right questions!!!
“Why are they selling?” is the best question you can ask. If they don’t give you an answer, continue to ask open-ended questions. An open-ended question will force the sales person to give you more than just a “yes” or “no” answer.
For example, you will gain a better insight into what price the vendor will accept if you ask: “If I make a cash unconditional offer with a short settlement, what Bargain hunters are on the prowl across Sydney and when they see value they’re buying.
Even the whiff of opportunity is motivating buyers. Last year, the $12.2 million sale of the penthouse in the 13-unit Waillea apartment block – opposite Queenscliff Beach at Manly – was the talk of the town.
But a few months back the developer of the North Steyne project went into receivership, with six of the three-bedroom luxurious apartments unsold. Belle Property agent Anthony Calacoci said three were snapped up last month – a ground-floor unit for $2.9 million; a second-floor pad for $3.9 million and a sub-penthouse for $4.7 million.
The prices achieved were close to 20 % less than what was originally expected. Calacoci said one of the available apartments which had an initial price of $4.1 million was now on offer at $3.4 million, a drop of 17 per cent.
”We haven’t advertised it’s in receivership but Manly is a small place and word spreads.”
The senior economist at Australian Property Monitors, Andrew Wilson, said there were plenty of bargains, particularly at the upper end of the market.
The average number of days it takes to sell a Sydney property hit 87 in May, compared with 79 in April and 76 in March. ”These figures were in the sixties this time last year,” he said.
Selling prices are being discounted by an average 6.4 per cent – 1 per cent higher than a year ago and the highest since December.
”This does indicate that buyers have the upper hand at the moment, in general terms and in certain pockets,” Wilson said. ”The more affordable end still seems OK.”
Patient house-hunters eyeing cheaper markets can be rewarded if they do their homework on passed-in properties.
Go forth snap happy bargain property buyers your deal of the century awaits!!!