How do you buy a property for $115,000 less than it sells for only two weeks earlier? Well, it all starts with experience. That’s right ten years of negotiating residential real estate allows you to learn a few tricks of the trade.
Our clients were first home buyers, and the entire process of buying a property was new to them. Like many of our buyers, they had another happy client pass on our details. 80% of our business is through word of mouth.
So our first home buyers had initially reached out and had fallen in love with this townhouse and wanted me to negotiate the best outcome for them. https://www.realestate.com.au/property-house-vic-port+melbourne-133767270 They loved that it was brand new, they liked the idea of having two bathrooms & the appeal of a new kitchen was ticking all their emotional boxes. We see this time and time again, first home buyers making a decision based on emotion for their first purchase. Our clients would have thoroughly enjoyed living here; this is what sales agents call a turn-key property. You turn the key open the door, and you enjoy simple living with not a worry in the world. Sounds great hey! Well yes, it’s great for the first 2-3 years, but then trouble arises. We firmly believe when buying a property, your decision making should include thinking about the short, medium and long term future goals. The property above is really suited to a professional couple who does not want to start a family or downsizers, that are looking for a low maintenance lock up and leave option.
Our clients were both in the early ’30s, and starting a family was on the agenda for the next 2-3 years. So this is where our experience of working with young couples, families and home buyers, in general, came into play. We analysed the floor plan, land size and location; our immediate thoughts were this is to small for a young family. If a property is too small, the next step is to consider the options to extend in the future. Unfortunately, with the block size and floor plan, the opportunity for a second storey wasn’t feasible.
Once we talked it through with our clients, they agreed so we ruled a line through this one! We were now looking for something they could comfortably live in for 2-3 years before they either renovate or extend to suit their future growing family. Fast forward a week later, and we had started negotiations on this Victorian property just around the corner. https://www.realestate.com.au/sold/property-house-vic-port+melbourne-133955062
This property is fundamentally a much better option. Double fronted as opposed to single fronted. More substantial block size, with the ability to extend out and up at the back to add a second living area, bedroom and second bathroom. A place our clients can truly grow into as a family.
We could have quickly pushed the agenda on buying the first townhouse. After all, it was better for our hip pocket as we knew our clients would need to sell and upsize to a larger home in the near future. But hey that’s the sales agents role, they sell the dream and create the emotion and are there to maximise the sale price for the seller.
Our role as a buyer agent is to objectively view our client’s situation and help them make informed property decisions. We would much prefer they build equity in a better quality asset and come back to us to buy an investment property in the future.
After reading this if you don’t think you need a BUYERS AGENT in your corner. Here is the real JUICY STUFF. This property sold to another buyer two weeks earlier for $1,375,000 – However the finance fell over, and our first home buyers secured the deal for $1,260,000 – Enough said!
Avoiding the mistake of buying too small for their future needs has saved our clients from paying stamp duty twice, sales agents fees & moving expenses in 2-3 years. You can read the common mistakes buyers make here https://www.industryinsider.com.au/the-mistakes-first-home-buyers-should-avoid-when-buying-property/
Founder & Buyer Agent at Industry Insider