Using BA in a hot market...
- Thread starter arashi87
- Start date
get in and get the place off the market before that happens.....................
Timing !
ta
rolf
for investors...
just a generic question regarding pros and cons of using BA in a hot/cold market
personally i cannot lock in any offers due to others offering above n above n above all time
personally i cannot lock in any offers due to others offering above n above n above all time
If you're talking about Sydney, I recall reading from some SS BA's that they too are struggling to compete in this market.
mainly NSW
NSW is a big place. But if you're wanting a BA to help in Sydney, sure they can help. But it doesn't mean they won't miss out due to the demand in the market right now.
How wide is your net? If you have an idea of say a 20km radius then I would suggest getting on the front foot and putting together a propery profile and get it in the hands of as many REA's as you can. On a Saturday you could get it to 30+ agents no worries.
Once a propery gets listed your too late.
Once a propery gets listed your too late.
It's tough in a hot market as a BA especially when buying for investors as the "fair value" for a property becomes a moving target.
The main advantage I would say is the off market transactions, amazingly in a hot market some vendors still want to sell off market, we are getting quite a few through in Melb at the moment, not sure if that is happening in Sydney, will find out soon enough when we open our Sydney office later in the year.
Why don't you call a few Sydney BA's and ask for examples of properties they have bought in the last 2 months and see if those properties at the prices paid would have been worth paying the fee.
Good luck
Hi Arashi
It can be false economy in a moving market to take longer to buy. Using a BA cuts the timeframe, makes the process more efficient and you benefit from our contacts, knowledge, expertise and experience. I wrote a blog on this a couple of years ago http://www.housesearchaustralia.com.au/advantage-buyers-agent-hot-market/
It can be false economy in a moving market to take longer to buy. Using a BA cuts the timeframe, makes the process more efficient and you benefit from our contacts, knowledge, expertise and experience. I wrote a blog on this a couple of years ago http://www.housesearchaustralia.com.au/advantage-buyers-agent-hot-market/
Invest in Wollongong, NSW 2500
Yes, same thing happens to me here in Sydney.
I've been offering according to what RPData suburbs statistics median price +$5k and up to $10k, but somehow there will always be someone woh crazily enough to out bid me in the auction for more than $50k above the reserve price
Therefore, just like some of the SS experts told me, hold your horses investing in Sydney, better to invest somewhere else outside Sydney NSW or go to Regional area such as Wollongong area.
This is based on credible source: http://www.smartpropertyinvestment.com.au/opinion/14287-3-regions-with-potential-for-growth
Hope that helps.
for investors...
just a generic question regarding pros and cons of using BA in a hot/cold market
personally i cannot lock in any offers due to others offering above n above n above all time
Yes, same thing happens to me here in Sydney.
I've been offering according to what RPData suburbs statistics median price +$5k and up to $10k, but somehow there will always be someone woh crazily enough to out bid me in the auction for more than $50k above the reserve price
Therefore, just like some of the SS experts told me, hold your horses investing in Sydney, better to invest somewhere else outside Sydney NSW or go to Regional area such as Wollongong area.
This is based on credible source: http://www.smartpropertyinvestment.com.au/opinion/14287-3-regions-with-potential-for-growth
Hope that helps.
What do you mean JH? Are you offering an extra $5-10K on top of the current median house/unit price for every property you find for sale in a particular suburb? I'm lost......how are you ascertaining fair price?
but somehow there will always be someone woh crazily enough to out bid me in the auction for more than $50k above the reserve price
$50K above reserve isn't uncommon right now and in fact, may well be a solid buy compared to other recent sales, many of which have sold for many hundreds of thousands above their reserves. Take these for example:
http://www.realestate.com.au/property-house-nsw-baulkham+hills-119651007
sold $430K over reserve
http://www.dailytelegraph.com.au/re...ydney-remain-hot/story-fni0cly6-1227262369554
ranging up to $1.1m over reserve
Don't forget that reserves are set by vendors and just because something sells above (or below) doesn't make it a "crazy" (or great) buy necessarily. Assessment of fair value in the current marketplace for the particular property is what makes the difference.
Credible source?! I think Charles Tarbey has as about as much chance of forecasting and getting it "right" than all the other "experts" out there, SS members included
Good luck with your purchasing.
One of the definite advantages in a hot market is that a BA will often get sent investment/development sites before they hit the market, so that the sales agent can save on marketing costs.
This is usually because in a really hot market, the sales rep will often have to pay for marketing themselves due to the competition in the market at that time.
This is usually because in a really hot market, the sales rep will often have to pay for marketing themselves due to the competition in the market at that time.
That was probably me.
Not dumping on BA service, just calling a spade a shovel.In a rising market BA also struggle to find deals, not saying they wont and they don't.
However what about all the other clients, don't you think some would actually want what you want?? How does that work?? Someone has to miss out, hope its not you. In a rising market it can move so quickly unless you can jump in very asap you are wasting valuable time.
For me the best way to source a property in a rising market is to network with re agents and as many as you can. The best deals I have sourced have always been because I am either working with a lazy re agent or out of area agent who does not have a handle on the area/prices and wants to sell, and not be bothered with home opens, that's how I secured my latest deal in a very hot market and well under market value.
Keep working it and keep networking, you do this enough something good is bound to happen
That was probably me.
In a rising market BA also struggle to find deals, not saying they wont and they don't.
Hi Marisa - you would have
. Confirmed by Propertunity here that it is a challenge: http://somersoft.com/forums/showpost.php?p=1318119&postcount=6"It is hard enough for us as BAs to buy in the present market, and that's all we do all day for a job. "
For me the best way to source a property in a rising market is to network with re agents and as many as you can. The best deals I have sourced have always been because I am either working with a lazy re agent or out of area agent who does not have a handle on the area/prices and wants to sell, and not be bothered with home opens, that's how I secured my latest deal in a very hot market and well under market value.
Keep working it and keep networking, you do this enough something good is bound to happen
Totally agree. It's about being able to form rapport and connection with the agent. If they trust you, know you're not a tyre kicker, you are more likely to get the deal than someone who hasn't built trust. One of our purchases in the rising Sydney market - we didn't know the agent (but I'm a serial real estate agent phone number saver)...luck was with us that the agent took our call (and had 12 other missed calls by the time we signed the contract 4 hrs later). Further, our offer wasn't even the highest!! But we managed to build the rapport and connection with the agent in the 5 minutes we saw the home and the other 20 we spent signing the contract. We came prepared, with all company documents, cheque book...ready to withdraw 0.25% deposit from the bank. Told him a bit about ourselves. He told the vendors that he would pick our offer over the other one as we know what we're doing (the other buyer apparently was umming and ahing about finance approvals). We paid $6,550 more than the asking price and $3,450 less than the other offer. We paid ~30k below market value (not sure how we pulled that off!
). And now it's worth roughly 50% more than what we paid for less than 2 years ago.Can't wait till it's a buyers market
P.S. Let me make note that a day or two before this purchase I was on phone with you about jumping in a rising market....Thanks for the great advice. I had thought the horse had already bolted then!
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Just make sure you don't take all blogs and articles at face value. Just remember that some people have vested interests. Naturally someone in the head office of a real estate company would do all they can to encourage sales ...
Great feedbacks fellow SS!
Ive learnt a lot from you guys!
Yes i completely agree WHY buy in a heated market ... But i am looking outside of Sydney, and yea i know theyre already hot as well. But i do believe at any stage of the property cycle there will be something that worth the bucks! Worth to invest!
Ive learnt a lot from you guys!
Yes i completely agree WHY buy in a heated market ... But i am looking outside of Sydney, and yea i know theyre already hot as well. But i do believe at any stage of the property cycle there will be something that worth the bucks! Worth to invest!
What do you mean JH? Are you offering an extra $5-10K on top of the current median house/unit price for every property you find for sale in a particular suburb? I'm lost......how are you ascertaining fair price?
$50K above reserve isn't uncommon right now and in fact, may well be a solid buy compared to other recent sales, many of which have sold for many hundreds of thousands above their reserves. Take these for example:
http://www.realestate.com.au/property-house-nsw-baulkham+hills-119651007
sold $430K over reserve
http://www.dailytelegraph.com.au/re...ydney-remain-hot/story-fni0cly6-1227262369554
ranging up to $1.1m over reserve
Don't forget that reserves are set by vendors and just because something sells above (or below) doesn't make it a "crazy" (or great) buy necessarily. Assessment of fair value in the current marketplace for the particular property is what makes the difference.
Credible source?! I think Charles Tarbey has as about as much chance of forecasting and getting it "right" than all the other "experts" out there, SS members included
Good luck with your purchasing.
Many thanks for the suggestion and sharing Jacques and Wombat.
It seems yes, you are right, even though the article is published in a RE website, it must be taken with a grain of salt.
Hence I'm asking or discussing it here in SS forum
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