Want to know how to buy below market value?

Everybody loves a good deal, and it’s no different when it comes to purchasing a property.

Market value in real estate is defined as an educated guess at what a property would sell for in a competitive market based upon its features, benefits, overall real estate market and supply and demand.

It may seem impossible, or at least incredibly hard to then buy below market value. However, that’s far from the truth.

So, want to know how you can buy below market value? Learn 6 tips and tricks down below with Thought Leaders Real Estate.

Know the market

There’s a difference between thinking you have a grasp on the current market conditions, and then there’s really knowing the market.

To know the value of a property, you must have a sound understanding of comparative sales of the same property type, within the same suburb.

How can you do this?

·         Physically attending plenty of home opens over an extended period of time and picking the real estate agent’s brain as well.

·         Or analyse the available property data. Read how certain valuations compare against the location’s ‘norm.’

Knowing the market is a sure-fire way to put yourself in the best position to negotiate a sale price.

2.   Know the real estate agent

If you’re attending a lot of home opens, you’ll become a familiar face to local real estate agents.

This is a good thing and not a bad thing.

Why? Because it shows that you’re serious and gives the opportunity for you to tell the agent what you’re looking for, and they’ll be able to show you where to find it.

We also know the market very, very well, cut emotion out of the equation and are ready to negotiate on your behalf.

Get a trustworthy valuation

You can value a property yourself if you have a good grip on current market values. However, if you’re not confident to do one yourself, you need a reliable one from someone you can trust.

Who to trust?

·         Sworn banks or lenders

Why?

·         They have a vested interest in protecting their downside.

·         They’ll also typically value a property at 95% to 100% of a realistic market value price.

4.   Pre-settlement opportunities

Not every potential buyer who signs a contract are able to settle – often because the property they were expecting to sell, needs a new buyer as well.

This can lead to the original buyer forfeiting their deposit which may lead to a price buffer, passed on to the new buyer as a ‘discount.’

5.   Mortgagee sales, divorced or deceased estates

Not every seller has time on their hands. They may need the money from the sale fast and are more willing to sell at a reasonable price.

This naturally, works nicely into buyers favour.

6.   Get ready to negotiate and transact

Strong negotiation skills (within reason) are an everyday part of buying and selling property in Perth.

If both parties are in agreeance of a price – get ready to transact quickly.

Do this by having:

·         Deposit funds ready and available (generally 20% of purchase price plus additional fee costs)

·         The position to service any lending and all your financial documents ready and waiting.

Looking to buy property in Perth?

Contact Thought Leaders Real Estate today for expert real estate advice and access to quality properties.