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With the shift to a buyer’s market, home owners and property investors are keen to offload their properties, often willing to accept the first reasonable offer.
“Sellers are now desperate. There are a lot of stressed home owners and property investors that are trying to offload their properties and they are prepared to sell it to the first person that offers them the best deal,” said Julian Finch, founder and CEO of Finch Financial.
Finch, a mortgage broker with decades of experience, offers insights to thousands of Australians seeking to get their loan applications approved. His firm is renowned for its high loan approval rates, often securing approvals in just minutes.
In a competitive buyer’s market, Finch said that the best offer may not always win the property solely based on price.
“Often the best offer may include other attractive elements such as cash, buying the furniture, waiving the cooling off period and fast settlement,” he said.
“This means that if you are on the hunt to buy a property, you may well find that it is sold before you get the chance to finish negotiating because someone came in below you with better terms.”
To increase the chances of securing a desired property, Finch said buyers should get pre-approved for a home loan.
“Being pre-approved for a loan shows the seller that you are a serious and qualified buyer. It also speeds up the closing process, making you a more attractive option compared to buyers who haven’t secured finance yet,” he said.
Acting quickly is crucial in the current market and “while it is a buyer’s market and often this means that you have more power to negotiate as a buyer, there are currently many buyers in the market and many sellers who are desperate.”
“This means sellers will move quickly to lock in a sale with the buyer who acts the fastest and offers the best terms,” Finch said.
He emphasised the importance of not being lulled into complacency, as competition for desirable properties remains high.
Finch said buyers should also be mindful when making offers: “While buyers have the upper hand, it is important to be respectful. Don’t insult sellers by making a lowball offer. In a competitive market, submitting a lowball offer may result in losing out.
“Make sure your offer is competitive with the asking price and market conditions.”
Additionally, he suggested that buyers consider offering to take furniture off the seller’s hands.
“Distressed sellers are often wanting to get out of the property as soon as possible. They want to wash their hands of the stress. If the property is furnished, consider offering the seller a fee for the contents of the property or the outdoor pots and furnishings. This will create more of a ‘walk out – walk in’ opportunity for the seller, making their life easier,” Finch said.
Finally, Finch stressed the importance of a quick settlement, saying that “distressed buyers know that time means money.”
“In their case, it means they will continue to be straddled with a mortgage that is hurting them. The sooner you can settle, the faster they are released from their financial pain. Offer a quick settlement of 30 days or less,” he said.
He advised buyers to work closely with their brokers to ensure that loan funds can be accessed swiftly, saying that he has helped clients settle in a matter of days when they work with the right broker.
[RELATED: Loan applications up at the start of spring]
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