In this ever-changing industry of ours, it is difficult for buyers to determine when the property market has reached its lowest point. For some, the desire to time the market can become such an enormous emotional concern that conservatism can outweigh pragmatism.
The post-election market has certainly seen conditions change. Confidence is returning, showing in not only a rise in the number of bidders per auction, but also a return of Fear Of Missing Out (FOMO) buyers. This is leaving conservative property buyers feeling the pinch as missed opportunities sail by.
On election day, I negotiated and secured (off market) a stunning, fully renovated Art Deco home in arguably one of the best streets of Glen Huntly. It was a day where anxiety ran high for both vendors and buyers, with many waiting on the election outcome to see what impact it would have on the property market.
The home was secured in negotiation for $1,252,000 – a fantastic price given the last results in the street for Art Deco Semi Homes were:
• $1,165,000 for a smaller, unrenovated home in November 2018 (same market)
• $1,510,000 for a fully renovated, slightly larger Art Deco home in June 2018 (at market peak)
Overwhelmed by conservatism and blinded by white noise, the buyers chose to withdraw from the purchase. It was decided to wait it out, after all, the market was still dropping according to the media…
The property went to auction with area experts Woodards Carnegie. Not surprisingly, the home attracted strong interest – a combination of confidence returning to the market and low stock levels that come with a property situated in the renowned, tightly held pocket of Glen Huntly.
Auction day five weeks on saw a well contested auction of 5 bidders. An opening bid of $1.2 million saw that the property was quickly on the market. This combination of buyer FOMO and an appreciation for an A-grade property resulted in a solid outcome of $1,362,000 – $110K over reserve.
By selecting A-grade property that has all the important fundamentals – such as location, scarcity, and long-term capital growth, you can be confident in your decision, knowing that it will perform in all markets.
While caution in purchasing property is certainly advisable, nothing is without risk. Sometimes holding back can cost you more than moving forward, it can cost you a fantastic opportunity.
Seeking out the advice of an experienced buyers advocate can save you time, money and stress. Filtering out the B-grade properties, they provide independent advice and guidance every step of the way.