Top Tips for Buying a Home in a Tight Market

The West Australian real estate market, like other states, shifts like a pendulum between a seller’s market to a buyer’s market. Surging prices, multiple offers and low days on-market can occur during a seller’s market and offers a positive outcome for the sellers. However, if you’re a buyer trying to find a home in a market with low stock levels combined with heightened competition, it can be a frustrating and challenging ordeal. Here are some proven tips that increase your chances of finding a house that you can call home in a tight market.

Work out your budget and stick to it

When stock is low, there are many more buyers on the lookout for the same house as you are. Set realistic expectations about what you can afford. There is no point going to homes that are out of your budget because it will only end in tears. If you’re working with a bank or a broker, check with them every couple of months to ensure that your lending capacity hasn’t changed. The environment keeps changing so your bank’s lending criteria might change from time-to-time. Work out your budget, have your finances in order and you’ll be able to act quickly when you find the right home.

Identify the neighbourhoods that you want to move in

When there are only a few homes in a suburb, you’re not going to able to tick every box. It’s unrealistic to think that you’re going to be able to tick off every single thing on your wish list - always be prepared to compromise. It’s a good idea to make a list of what you want and add any non-negotiables. This could be a close proximity to schools, or a short drive to work or it could be a double garage or a pool. This list will help keep you on track and help you prioritise what you’re trying to achieve.

When you do find the right home, act quickly.

When a home satisfies your criteria, you can be sure it’s also ticking other buyers’ boxes as well. In this market where there are low stock levels, you don’t have a lot of time to think. If you want to sleep on it, you may as well forget about it because it could very likely be gone the next day! When you find the right home, make sure you act quickly, put pen to paper and get your offer presented.

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