SEVEN SECRETS FROM A SYDNEY BUYER’S AGENT · deals. We’re specialists in Sydney’s Eastern...
Transcript of SEVEN SECRETS FROM A SYDNEY BUYER’S AGENT · deals. We’re specialists in Sydney’s Eastern...
SEVEN SECRETS FROM A SYDNEY BUYER’S AGENT
H O W T O S AV E T I M E A N D M O N E Y
I N O U R C I T Y ’ S F A S T - PA C E D
R E A L E S TAT E M A R K E T
A N O T E T O S Y D N E Y ’ S P R O P E R T Y H U N T E R S
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S E C R E T 1 H AV I N G YO U R F I N A N C E I N P L AC E
M AT T E R S M O R E T H A N YO U T H I N K
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S E C R E T 2
M A K E S U R E YO U K N O W W H AT YO U WA N T
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S E C R E T 3
I N V E S T O R S , S T E P O U T O F T H E H O M E
H U N T E R M I N D S E T
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S E C R E T 4
N E V E R S K I M P O N T H E E X P E R T S
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S E C R E T 5 T H E B E S T P R O P E R T I E S N E V E R M A K E I T T O M A R K E T
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S E C R E T 6 I N F O R M AT I O N I S P O W E R
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S E C R E T 7 T H E R E ’ S A R E A L C O S T T O N O T TA K I N G AC T I O N
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YO U R P R O P E R T Y S E A R C H C H E C K L I S T
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YO U R B U Y I N G C H E C K L I S T
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T H E B U Y E R S AG E N C Y S Y D N E Y: YO U R U N FA I R A D VA N TAG E
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T A B L E O F C O N T E N T S
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S E V E N S E C R E T S F R O M A S Y D N E Y B U Y E R ’ S A G E N T
THE BUYERS AGENCY S IDNEY | 02 9363 3239 | WWW.THEBUYERSAGENCYSYDNEY.COM.AU
A N O T E T O S Y D N E Y ’ S P R O P E R T Y H U N T E R S
Buying a house is one of the most exciting
– and stressful – purchases you can make.
I’ve supported hundreds of property hunters
through this process and spent years finding
ways to make buying the right property
easier. I’m also well aware of common
mistakes that end up costing people time
and money.
So I want to share some of the most valuable
things I’ve learned with people like you –
buyers and investors who want to make the
most of Sydney real estate.
Sydney is home to one of the most
competitive, fast-paced and occasionally
ruthless real estate markets in Australia.
In 2016 alone property prices rose 13.1%
according to CoreLogic. That means they
rose a whopping 67.3% over the five years
between 2011 and 2016.
No wonder then, that for many people
looking to buy their first or next property,
it can feel like there’s simply no way in….
But there is. So long, of course, as you’re
willing to take concrete steps to be more
prepared, more informed and more
negotiation-savvy than the other property
hunters out there. In this guide, I’ll show you
how to become all of these things and more.
So, why am I giving away my buyer’s secrets?
I’m hoping this information will make your
property search that much easier. I’m
regularly surprised by how many people
don’t put the principles I’m sharing here
– many of which should be common sense –
into practice. Instead, they get carried away
by the emotion and stress of the search.
And of course, I’m also hoping you’ll
get in touch with the The Buyers Agency
Sydney team for our expert advice. After
all, our clients rely on our experience,
our connections with agents in exclusive
areas and our direct access to off-market
deals. We’re specialists in Sydney’s Eastern
Suburbs and Lower North Shore and we
cover every step of the process – from
initial research to managing inspections,
negotiating the best price, settling contracts,
advice on renovating and tracking the value
of your property over time.
So take a few minutes to read these tips.
It could save you months of heartache and
many thousands of dollars.
Wishing you success in your property search,
Rodney P McLoughlin
Director, The Buyers Agency Sydney
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THE BUYERS AGENCY S IDNEY | 02 9363 3239 | WWW.THEBUYERSAGENCYSYDNEY.COM.AU
My first tip is probably the most
straightforward: prepare your finances.
It may seem obvious enough but you’d be
surprised at how many people show up
to auction without having first made that
all-important call to their bank manager or
mortgage broker. Worse still, many don’t
know how high their bidding can go – and
that can lead to serious financial difficulty
when the bank turns around and denies
your loan.
If you’ve taken the time to set up a realistic
budget and get pre-approval on a home loan,
you’re already ahead of the competition.
Q U E S T I O N S F O R YO U R B A N K
M A N AG E R A N D F I N A N C I A L
A D V I S O R
— How much can I borrow? (Don’t rely on
the online calculators, they won’t give you
the full picture).
— What type of loan do I need?
— What will my monthly repayments be? Can
I pay less through fortnightly repayments?
— Do I need mortgage insurance?
— What are the benefits of fixed and variable
interest rates?
— What steps do I take to get pre-approval?
K E Y F I G U R E S T O I N C L U D E I N
YO U R B U D G E T
— Monthly or fortnightly repayments
— Rough estimates for any renovations
or repairs
— Cost of conveyancing and other legal fees
— Stamp duty – get an estimate using the
stamp duty calculator
If you don’t have financing set up, get in
touch with our team. We work closely with
some of the best mortgage brokers in
Sydney who can save you money by finding
the best possible loan for your situation.
R E M E M B E R
Your budget should always dictate your
property search criteria, not the other way
around. Be realistic, but keep in mind that
there are ways to buy into competitive
markets, even on a tighter budget.
B U Y I N G I N S Y D N E Y
F R O M O V E R S E A S ?
We offer specialist services for expat
Australian buyers and foreign investors.
Let us help you track the latest market
trends, find and shortlist properties that
meet your exact requirements, and manage
the final negotiation and sale. We’ll make
sure you don’t pay more than necessary,
help put you in touch with people who can
arrange finance, and give you peace of
mind throughout the process.
H A V I N G Y O U R F I N A N C E I N P L A C E M A T T E R S M O R E T H A N Y O U T H I N K
• • • W H Y YO U S H O U L D S P E A K T O YO U R L E N D E R B E F O R E
YO U G E T S E R I O U S A B O U T S E A R C H I N G
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THE BUYERS AGENCY S IDNEY | 02 9363 3239 | WWW.THEBUYERSAGENCYSYDNEY.COM.AU
No matter what your budget is, keep in
mind that the ‘perfect’ property – one that
ticks every single box – probably doesn’t
exist. Most buyers have to compromise
on something.
So get clear on what you’re looking for.
Which of your criteria are must-haves and
which can you live without? Answering this
question should take time and effort.
T H E R E S E A R C H P H A S E
When you first start house hunting look at
a wide range of properties. Go to some
open houses for a few properties that are
well above your budget or don’t meet your
criteria. At this point you’re aiming to learn
about the market. But there’s always a
chance you’ll meet an owner who needs to
sell urgently or that you’ll discover a new
area you hadn’t considered.
T H E H U N T
One of the main factors that can make
house hunting a long, arduous process is
lack of clarity around what you’re aiming for
and where you’re willing to compromise.
Research is important, but if you keep
visiting every open home across multiple
suburbs you’ll be giving up all your free
weekends for months. Being clear about
your must-haves, nice-to-haves and
negotiables helps avoid this.
Q U E S T I O N S T O R E F I N E
YO U R S E A R C H
— Location: How far are you willing to look
outside your most ideal suburbs? How
close do you need to be to schools, shops
and public transport?
— Property type: Are you only interested in
new properties? Off-the-plan units? Vacant
blocks? Don’t limit yourself by focusing
only on the types of properties most
buyers are looking for – thinking outside
the box could save you thousands.
— Property elements: Don’t base your
search criteria only on things that are
easily changed with a renovation. Put the
most emphasis on things you have no
control over like block size, aspect, natural
light, views and street noise.
While it’s always difficult to find a property
that matches all your criteria, knowing what’s
out there and defining exactly what you want
is invaluable when it comes to bidding and
negotiating on that ideal place.
Using a buyer’s agent like The Buyers
Agency Sydney takes the time and hassle
out of the property hunt, by helping you fine
tune your search criteria and find the perfect
property faster.
M A K E S U R E Y O U K N O W W H A T Y O U W A N T• • •
E V E N A D R E A M H O M E S H O U L D B E G R O U N D E D I N R E A L I T Y
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I N V E S T O R S , S T E P O U T O F T H E H O M E H U N T E R M I N D S E T
• • • B U Y I N G A N I N V E S T M E N T P R O P E R T Y I S N O T H I N G
L I K E B U Y I N G YO U R O W N H O M E
B U Y I N G P R O P E R T Y T H R O U G H
A S E L F - M A N AG E D S U P E R
F U N D ( S M S F )
If you’re looking to buy in an SMSF, you’ll
also need to consider questions like:
— How much do I need in super?
— Can I borrow money to buy the property?
— Am I allowed to renovate?
— What kind of deposit will I need?
For more expert advice, read our guide to
buying in an SMSF or contact us today.
S E C R E T 3
Even if you’ve already bought your own
home, taking the next step and buying an
investment property requires a completely
different approach. You’ll need to consider
a new range of factors – and it’s even
more important to keep emotions out of
the equation.
Q U E S T I O N S F O R I N V E S T O R S
— What is the vacancy rate in my
chosen area?
— What can I expect for an average
rental return?
— What’s the demographic of the area?
Who’s likely to rent my property?
— What are the average crime rates in
the area?
— Are property prices expected to
rise or fall?
— What happens if the tenants damage my
property? Do I need landlords insurance?
— If I buy a new property, how much
depreciation will I be able to claim?
Who do I need to speak to about
managing this?
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THE BUYERS AGENCY S IDNEY | 02 9363 3239 | WWW.THEBUYERSAGENCYSYDNEY.COM.AU
It can be a frustrating experience paying for building,
pest and other inspections when you don’t end up
buying. But if you’re serious about a property, always
resist the temptation to cut costs here.
Harsh as this situation is, the alternative – buying
a property that turns out to have a major flaw – is
chilling and could be a huge opportunity cost. When
faced with that $10,000 bill to rip up floorboards and
treat for termites, a $500 pest inspection suddenly
seems very worthwhile.
We’ve heard too many of these horror stories not to
share some key tips:
— Research your building inspector: Check their
reviews and credentials online. Make sure they
have suitable and current professional indemnity
insurance. Watch for inspectors who may be hiding
problems to benefit sellers.
— Make sure your inspection reports cover
everything: Don’t miss these crucial areas:
• Pests
• Water damage
• Foundations
• Electrical work
B U Y I N G A U N I T ?
Request the minutes from the last two body
corporate meetings to find out about any problems
with the building and check the finances are in
order. Are there any upcoming one-off payments,
special levies or loans for urgent repairs?
Don’t forget to have your solicitor or conveyancer
check drainage diagrams, find out about any
easements and whether the property boundaries
are accurate.
C O U N C I L C H E C K S
Your solicitor or conveyancer should make enquiries
to find out:
— Are there any submitted or approved development
applications in the area?
— Are there upcoming major infrastructure
developments (road widenings, light rail, tunnels,
flight path changes)?
— Is the property heritage listed?
You should also do your own checks to make sure the
area has adequate broadband and mobile reception.
W H AT T O L O O K F O R AT I N S P E C T I O N S
When you’re inspecting a property, always be on the
lookout for these things. They could be the sign of a
bigger problem:
— Large cracks in walls. Pay close attention if the
house has just been painted.
— Uneven floors or a bounce when walking across a
room.
— Doors and windows that don’t close properly.
— Paint peeling off walls and damp smells. Is the
seller’s agent using deodorisers or fragrances to
hide a smell?
— Water pressure. Check by turning on taps and
flushing toilets.
— Hazardous materials such as asbestos.
— Adequate fencing around the pool. Does it
meet regulations?
Q: Should we forget about a property if it does have
structural problems?
A: Get a second opinion. There are few problems
that can’t be solved with enough time and money,
so knowing exactly what needs to be done to the
property gives you the chance to negotiate a
better price.
N E V E R S K I M P O N T H E E X P E R T S• • •
S K I P P I N G I N S P E C T I O N S I S A R E C I P E F O R D I S A S T E R
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THE BUYERS AGENCY S IDNEY | 02 9363 3239 | WWW.THEBUYERSAGENCYSYDNEY.COM.AU
These days it seems like every property
worth buying sells through auction. This
is doubly true when it comes to the most
desirable suburbs. But what if you didn’t
have to front up to an auction with 100
other buyers and go through yet another
stressful round of bidding, only to lose
out at the last minute?
The fact is, the average buyer will never
hear about some of the best property deals.
‘Off-market’ properties change hands behind
the scenes with the help of well-connected
buyer’s agents.
This approach can benefit savvy sellers
and buyers often get a better deal too.
Seller’s agents need to foster good working
relationships with buyer’s agents so they’re
almost always upfront about any defects or
inadequacies, as well as the real value
of the place.
This means a buyer’s agent can find out the
real story of the property and negotiate a
better price.
W H Y W O U L D S O M E O N E S E L L
O F F - M A R K E T ?
— To maintain confidentiality around
their sale
— To save on selling costs
— For a quicker sale
— To manage a difficult transition,
such as a divorce or death
B U T N O O N E I S S E L L I N G
W H E R E I WA N T T O B U Y…
If you think your dream neighbourhood is
off limits, think again. A good buyer’s agent
will take a proactive approach to sniff out
off-market sales. They can letter drop a
particular street or block of units to gauge
interest and potentially negotiate a price
directly with an owner.
T H E B E S T P R O P E R T I E S N E V E R M A K E I T T O M A R K E T
• • • W H Y YO U N E E D T O AC C E S S O F F - M A R K E T D E A L S
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THE BUYERS AGENCY S IDNEY | 02 9363 3239 | WWW.THEBUYERSAGENCYSYDNEY.COM.AU
Putting in the hours to do your research
properly will almost always pay off. This
means being prepared to do the legwork.
In today’s market simply searching online
or waiting for the next email update from a
property website isn’t enough.
Your research should cover everything from
the history of the area to walking through
your prospective neighbourhood to pick up
on factors like road noise (go in peak hour
for the real picture), light levels at different
times of day, the time it takes to get to the
bus or train station, on-street parking, what’s
happening with nearby properties and who
your neighbours will be.
T I P
Talk to the neighbours if you can. Often
there’s at least one who knows everything
about the street and is more than happy
to share.
It’s also important to research the sale price
of properties in your price range over the
last three months. You may need to call
some seller’s agents to find this information.
(Keep in mind that buyer’s agents have direct
access to sale price history.)
YO U R P R E -A U C T I O N P L A N
General information about a neighbourhood
is important, but if you’re heading to an
auction it’s crucial you know the specifics
about the property before you start bidding.
Always know how long the property has
been on the market and exactly why the
vendor is selling. You should also have your
completed pest inspections and a pre-set
auction limit.
If the property passes in and you end up
negotiating directly with the seller’s agent, all
this information will help. You want to make
the lowest offer possible. But go too low and
you risk offending the vendor or having the
agent decide you’re not a serious buyer.
Find out more about how we can help you
when buying at auction.
A U C T I O N M Y T H
It’s more expensive to buy at auction.
Fact: Usually only a few of the 700-800
properties that go to auction each week
sell well above their reserve price. The
media doesn’t write about properties
that fail to reach the reserve and are
negotiated after the auction ends.
If the prospect of bidding at auction is adding
extra stress to your house hunt, remember
that a confident buyer’s agent can take the
emotion out of the process. We use tried
and tested strategies to make the right bid
at the right time and protect you from
budget blowout.
I N F O R M A T I O N I S P O W E R• • •
A N D A L L R E S E A R C H I S U S E F U L
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THE BUYERS AGENCY S IDNEY | 02 9363 3239 | WWW.THEBUYERSAGENCYSYDNEY.COM.AU
My final secret is this: don’t wait. There’s a cost to taking no action when it comes to finding
your dream home, especially when the property market is hot.
Sydney’s real estate market shows no sign of slowing down. Using the same CoreLogic figure
of 13.1% growth, a property that cost $2m at the start of 2016 would have cost $2.262m by the
end of the year. That’s the equivalent of more than $5,000 a week.
So there are concrete financial reasons to get in as soon as possible.
Saving a deposit and doing your research is important. But it can also pay to act before you
feel completely ready, even if that just means starting a conversation with a buyer’s agent at
The Buyers Agency Sydney.
T H E R E ’ S A R E A L C O S T T O N O T T A K I N G A C T I O N
• • • N O T B U Y I N G A P R O P E R T Y C O U L D C O S T YO U M O R E
T H A N PAY I N G A B O V E T H E O D D S
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Y O U R P R O P E R T Y S E A R C H C H E C K L I S T
F O R A L L P R O P E R T Y H U N T E R S
— Decide on needs, wants and
non-negotiables.
— Research your market online and offline.
— Define your budget limit.
— Get finance pre-approval.
— Find trusted building and pest inspectors.
— Have a solicitor ready to do your
conveyancing.
F O R O W N E R O C C U P I E R S
— Is your partner on the same page when it
comes to what you’re looking for?
— Have you considered your future needs
and growth potential?
F O R I N V E S T O R S
— Research neighbourhood statistics like
rental returns and tenancy rates.
— Consider landlords insurance.
— Engage a trusted tax adviser.
— Remember to leave the emotion at
the front door – this is an investment not
a home.
W H E N B U Y I N G V I A A N S M S F
— Research the tax laws and benefits that
apply to your situation.
— Find out about restrictions on making
changes/repairs.
F O R O V E R S E A S B U Y E R S
— Find out which Australian tax laws apply to
your situation.
— Decide who will manage inspections,
bidding and sale negotiations.
Y O U R B U Y I N G C H E C K L I S T
Are you truly ready to buy? Ask yourself
these questions:
— Does the property meet enough of your
not-negotiable search criteria?
— Have you done your market research on
comparable sales?
— Is your finance in place – including
a deposit?
— Have you confirmed your auction or
negotiation strategy?
— Are your building, pest and council
inspections complete?
— Has the property title been checked?
— Have you engaged your solicitor/
conveyancer to look over the contract?
W H AT N O T T O D O
— Don’t put property buying in the ‘too hard’
basket and wait for the market to turn
or cool down – no one has a crystal ball
and there could be a huge opportunity
cost to inaction, particularly in a market as
hot as Sydney.
— Don’t rush in and buy something on a
whim or without having done your due
diligence on the property and proper
market research on prices – you could
end up with a lemon or paying above
the odds.
— Don’t miss out on off-market properties
– it happens more than you’d think so
make sure you’re well connected with
agents in your search area.
— Don’t be scared of auctions – it’s a fair
and transparent process but the pressure
can be overwhelming, so consider
employing someone experienced to bid
and negotiate on your behalf.
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T H E B U Y E R S A G E N C Y S Y D N E Y : Y O U R U N F A I R A D V A N T A G E
A buyer’s agent works exclusively for you – the buyer. We’re relatively rare in the Australian
real estate market, which means you’ll have the edge over most other property hunters.
W H Y U S E A B U Y E R ’ S AG E N T ?
— Save money: We not only have access to exclusive off-market properties and homes that
are just about to enter the market, but we can also do the negotiating for you, drawing on
years of experience to get to the best price.
— Save time: We average four weeks from first inspection to settlement. Our market
knowledge means you’ll save months of research and we can also inspect on your behalf
and provide detailed reports.
— Get help with the fine detail: With our knowledge of investment properties, buying via an
SMSF, and buying from outside Australia, we can direct you to the best people for legal, tax
and contract details. We’ll also track your property’s performance over time, sending you
an objective property or rental analysis every year.
— Find peace of mind: We know what to look for when it comes to defects, over-eager
vendors and sellers agent tricks. From shortlisting, to inspecting, to making the winning bid,
we stay objective and put your best interests first.
The Buyers Agency Sydney draws on 30 years’ experience in the real estate industry.
We enjoy helping buyers through the process of finding and buying their dream properties.
Our industry contacts mean we’re connected with leading agents in Sydney’s Eastern Suburbs
and Lower North Shore and our knowledge of the market means we know where to focus
now and where to look next.
We’re there for the entire process, making sure you don’t pay more than necessary or spend
months in a fruitless property search. To discuss how we can help you find your ideal property,
contact us today.
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