Buyers urged to resist "lowest hanging fruit"
With home prices across Australia increasing at the fastest rate in a decade, a housing industry figure has urged homebuyers not to rush out and buy an inferior property “just to get a foot on the property ladder.”
Cate Bakos, president of the Real Estate Buyers Association of Australia (REBAA), said that homebuyers should resist the urge to go for the “lowest hanging fruit” in a competitive market to avoid the competition.
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“Buyer fatigue can make buyers lazy with their due diligence and in some cases drop the due diligence altogether to cut down on costs if they have lost money on building inspection fees in the past,” said Bakos. “This is a terrible strategy and often their desperation can give way to impetuousness. Many buyers turn to ‘off-markets’ under the misguided expectation that secret sales are all good but in a seller’s market they’re often just masking bad sins.”
Bakos said that, with the market booming, it was more important now than ever for homebuyers to be cautious and alert.
“In any other market, these properties would either not sell or sell at a seriously discounted rate,” said Bakos. “Buyers need to remember that a property that’s difficult to sell in a seller’s market will be even more difficult to sell in a buyer’s market. Always consider the potential resale value of the property you’re buying and ask yourself if it was a buyer’s market, could I sell this property easily?”
Bakos added that homebuyers should seek legal advice in case there is a way out of the contract if they think “bought a lemon”
“Alternatively speak to a professional buyer’s agent about remediation or making the best out of the property,” concluded Bakos.
