A falling real estate market can be viewed as a buyer?s market ? especially if you?re looking to get into a desirable suburb. According to the ABC, would-be buyers are turning it to their advantage and seeing it as a good time to enter the market; in markets that only just last year they would have had no hope of stepping in to.
So, how do you buy a house in a falling market?
Take your time
It can actually work out in your favour that things are taking a lot longer, so you can afford to sit back and really think about what it is you want. Gone are the days when you had no other option but to go for it with houses were auctioned off at exorbitant prices over the asking price. Now that the banks have tightened their lending criteria, approval processes are taking longer and as a result, houses are staying on the market for longer.
This means that you, as a buyer, can take your time. Do your research thoroughly and really consider what you are willing to pay for a house. Look at similar properties in the area and what they have recently sold for, look at how long the property you like has been on the market, ask about the circumstances of the owners (i.e. do they need to sell quickly due to relocating interstate?), then make your offer. The worst they can say is no and then you know it?s just not meant to be.
Secure your finance first
Yes, it?s a buyer?s market but if you want to maximise this opportunity, get your finance approved first. The approval processes of most major banks are taking longer and are more stringent because of the Royal Commission. Less people are getting approved for mortgages. So, if you make an offer on a house with a letter from the bank saying they will lend you the money, you are in a better position than someone who makes an offer but still needs to secure finance. Who knows, you may even get a better deal.
Buy to live in
When the market is falling but you?re buying a home to live in, are you really losing money if the market continues to fall more? Let?s say you live there for 20 years, it?s more than likely that the market will fall and rise again. Plus there?s the value of living in your own property for a long period of time.
Don?t get obsessive
Once you buy, leave the property market updates well alone. There?s no point in constantly checking to see if house prices have fallen again. You?ll only cause yourself distress, when really you should just be enjoying your home.
Article provided by?Listing Loop