A buyer’s market is forecast for Newcastle in 2019, with prices continuing to drop. But experts are warning people who are planning to buy not to be too confident.
The risk of buyers overpaying in a slow and in a fast market is the same, as many erroneously think their chances of grabbing a bargain are better. When a property gets passed in an auction, it doesn’t mean that one or two other buyers are waiting in the wings to grab it. In this scenario, buyers often end up competing with several buyers and paying a hefty price.
The primary benefit of a softer market was that there is no need for buyers to make a hasty decision. However, this does not mean that house hunters should wait for the market to take a tumble.
Here are expert tips for home buying in 2019:
- Get your loan approved
More rigid lending conditions were pushing home buyers to have their loan approved before they even start their search. Delays in financing will create problems and could cost you money if ignored. Make sure you know when your pre-approval expires.
- Think long term
House hunters should look at property investing and home buying as a “long-term game” and not be overly concerned about what is currently happening in the market. Think about what your needs are for the next 10 years instead of purchasing a home now. This will prevent you from being forced to sell in the short term.
- Negotiate like a professional
A buyer’s greatest defence against overpaying in a slow market is negotiations.
Experts advise searching for properties that have been on the market for four or five months to get more savings. They also warn against being complacent and thinking that real estate agents are easy targets because many properties are available or prices are low.
Never forget that you are not the expert at negotiations, they are.
- Don’t dawdle and attempt to “time the market”
For buyers, don’t wait for the market to slow down. You can’t predict anything, so take action when opportunities are presented to you. When you find the right property, perform your due diligence and act fast. Good locations and good properties are tougher during slumps.
- Hire a professional
Prospective buyers can seek the services of a local buyer’s advocate with extensive knowledge of the area and the market they’re intending to enter.
A buyer’s agent will steer you towards the locations that have traditionally performed well regardless of the macro economic conditions, and look after your budget.