With property prices moderating and falling across much of Australia – in Sydney, house prices have fallen by 10% since their peak earlier in the year – discounts well below the usual price reductions can be found in this market for those who have time to do legwork, said Dragan Dimovski of Buyers Agency Australia.
Mr Dimovski noted a sale he recently did for a property investor in Marsden, which falls in the Logan City Council.
The property is valued at $750,000 but was purchased for $608,000 – a $142,000 dicosunbt, or 19%.
“The six-bedroom, three-bathroom property sits on a 1,450sq m block at 31 Galahad Street, and we believe it will be rented out for $650 per week, which will make the property positively geared,” he said.
“The property was purchased off-market, sourced through a relationship we had with a real estate agent.
“Even though the agent said the seller wanted more than $700,000, and my research led me to believe the home was worth around $750,000, I still made an initial offer of $608,000, which was accepted.”
Mr Dimovski said this particular client was seeking a property that has the options to add value, maximising the return. The property can also allow for dual occupancy – each level of the two-storey home is self-contained.
“The block size also provides the opportunity for the buyer to add a granny flat, with the Queensland Government recently relaxing rules around these dwellings, allowing them to be rented out.
“The property could also be subdivided, with the land at the back able to be subdivided and sold to generate a profit and pay down the mortgage.
“While we know price growth has slowed nationally and in some areas prices have fallen, those falls have been limited, making this bargain property a great find.
Dragan Dimovski of Buyers Agency Australia
“Other homes in the same street have recently sold at discounts of around five per cent from where prices were three months ago, not nearly 20 per cent.”
Mr Dimovski said while there are bargains across the market, they are not easy to find.
In light of this, he has provided six top tips to assist buyers in finding a bargain.
6 tips to get the best price discount on a house
- Become an area expert
- Get to know the local real estate agents
- Ask the right questions
- Play the number games
- Do mailouts and/or doorknocks
- Get some help
1. Become an area expert
Firstly, Mr Domovski said that once you have a set budget of what you can afford, choose a maximum of three locations you are interested. Then, do thorough research on the trio.
“This will include looking at the homes for sale in your price range and how much they are selling for in the current market,” he said. “This will help you to identify a good deal when it arises.”
2. Get to know the local real estate agents
Although all buyers can see what homes are on the market in a particular location by looking up an online portal, there are always ‘off market’ homes up for sale. These homes are ones that owners wish to sell but haven’t yet officially put on the market.
“If you have good relationships with local real estate agents you can get access to these off-market listings, which generally sell for a lower price as there is less competition,” said Mr Dimovski.
3. Ask the right questions
It is true that a good real estate will rarely tell you why their clients are selling. If you know what questions ask, however, you can determine if the seller is motivated to sell. Often, it can be due to finances or personal circumstances.
“In that case they will usually be prepared to sell for a significant discount if your offer is the first to come along, with the right conditions,” said Mr Dimovski.
4. Play the numbers game
Mr Dimovski said buyers should not get frustrated if they can’t find a bargain immediaitley. It can take some time to find one.
“Just keep looking, and the more homes you see the more likely a bargain will arise,” said Mr Dimovski.
“It’s a numbers game.”
5. Do mailouts and/or doorknocks
While this step may sound more like something a politician would do, Mr Dimovski suggested that you should consider knocking on people’s doors or write a letter asking if anyone is interested in selling their house and drop it in letterboxes in the area.
“Homeowners are often happy to sell direct to an interested buyer as it cuts out the real estate agent’s fees, and this means they are often happy to sell for less,” said Mr Dimovski.
“Again, it’s a numbers game, so even if you do hundreds – or thousands – of letterbox drops, you just need one homeowner willing to sell.”
6. Get some help
Often, there can be significant work invovled in finding a property bargain. It won’t just fall into your lap, so if it seems overwhelming, ask for help, he said.
“Engaging an experienced buyers’ agent puts all the work and stress into someone’s else’s hands; someone who looks at property every day and is able to identify bargains when they see them,” said Mr Dimovski.
“While there is a fee for a buyers’ agent, it is more than covered by the greater price discount they are able to secure on your behalf.”
Article source: thepropertytribune.com.au