Tips For Purchasing Real Estate in a Hot Market

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WORDS: Peter Minkoff PHOTOGRAPHY Supplied

Buying a real estate property is not an easy task. First of all, it’s a big purchase that will cost you a lot of money. Second of all, it can put you in deep trouble if you don’t follow all the tips from pros. If you’re new to real estate, you might need some help on the side, so make sure to listen to advice from experienced people and you’ll avoid many downfalls and end up with a gorgeous property and a smart investment. 

Distinguish between wants and needs

We all have different must-haves when looking for a perfect rental or home to buy. Make sure to create a list of definite needs and keep it as short as possible. Every must-have element you add on the list will make your search harder and longer. When you come up with a list of needs, rank each entry from most to least important. Only later can you add a few wants (certain design elements, additions and interior design perks). We live in a time of limited market offer, so you can’t be overly choosy. However, never compromise when it comes to your most important needs because you might regret your decision to buy very quickly. 

Hire professionals

Unless you’re determined to go through the entire process of finding and buying a property on your own (in which case you might be looking at a bright future in real estate), hire a helping hand as soon as you can. You can start with a good real estate agent to listen to your wants and needs and make your search easier and faster. They can also help with negotiations and closing the deal, as well as paperwork which can be very complicated and boring. You can also consider hiring a home inspector to examine the properties you’re interested in and point out flaws, if any. You can use the home inspector’s report to stir negotiations in your direction. 

Get insurance

There are many things you can insure about your new property. It’s best to get homeowner’s insurance before the loan closes to prevent disasters from happening for both yourself and the lender. Depending on the house that you’re buying and the circumstances surrounding it, you might want to invest in additional coverage—talk to your home inspector and ask for some recommendations. For instance, in case the property is located near a flood plain, flood insurance coverage might be a smart idea. Also, buyers from Australia usually buy title insurance, which is not yet so popular in other parts of the world. The reason title insurance in Australia is so popular is that it can protect your right to occupy your house and live on your land. This covers unknown and unapproved building works and various other property risks that can befall any new homeowner—it’s a very smart investment.

Put in a strong offer

If you’re buying a property in a strong market, your agent might recommend that you offer the asking price or even go over it. For most sellers, the highest bet is the most interesting one, but not always. Sometimes, they might opt for the offer with the fewest buyer demands, so make sure that your offer is clear as well. Today, many buyers choose to put down more earnest money or guarantee the sale in order to get noticed and score a win. 

Prepare for a bidding war

In many cases, when buying a house in 2023, you might find yourself in a multiple-offer situation which can result in serious negotiations. You might be tempted to go overboard in a bidding war because emotions run high in these situations, but it’s best to stick to your budget. This is where your real estate agent can help. They can offer helpful advice and be there to do the bidding in your stead. 

Buying a property will take a lot of patience and persistence and some quick executive decisions. The market is leaning more towards sellers right now, but you can still get a great deal if you take things slow and get plenty of help from experienced professionals.