Stop Your New Home Dreams Going Pop: Fighting Through The Housing Bubble

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You don't need to be a real estate expert nor an accountant to know that now is a tough time to purchase a house. While rents and incomes remain relatively static, the cost of buying a home is ballooning. And while what goes up must come down, how long can a person wait?

If you're looking to buy, it's important to avoid being priced out of the market. It's tricky because most people selling houses are also seeking to buy one. They're equally aware that prices are high out there, so are unlikely to be willing to move on their price. So stalemate is common, meaning not as many houses are getting sold, meaning that demand is outstripping supply. Perfect conditions for a bubble.

So what you as a potential buyer need to know is simple: where's my leverage and how can I maximize it?

Look For Auctions

Dealing directly with a seller is always going to be tougher than buying by other means. The simple truth is that when you deal directly, emotions enter the game - both yours and theirs. If you look at buying via auction, however, that is when you are more likely to find bargains to renovate. The more you attend, the more you get a feel for what you should be paying - and how to bid effectively.

Do Your Homework On The House

If you were selling a house, you'd do everything in your power to get the best price, right? Be honest, would that lead to you trying to hide some of the negative aspects of the house? Yes, it would. So when you're buying, what the seller isn't telling you can be as important as what they are. Asking conveyancing experts such as Gillard Lawyers to arrange searches can boost your leverage. If the seller refuses to allow searches, this is grounds for negotiation - or just walking away.

Deal With The Realtor As Much As Possible

Real estate agents make most of their money on commission, so it is in their best interests to get a higher price for the house. But it is also important for them to get a sale. Asking for unrealistic amounts of money doesn't help them do this. They don't have a personal attachment to the house and can help the vendor see sense if they're asking for too much. This is one situation where cutting out the middleman is an unwise idea.

Be Prepared To Bend

Buying a house is expensive, and any movement you can get in price may be significant. This very often will mean you need to give something in return. So if you're holding out for the vendor to fix a flooring issue or replace an antiquated bath, drop it. It will cost you less to do the work yourself than to wait and pay more. A willingness to move on these things draws hostility out of negotiations. It may win you more concessions closer to completion.

Of course, none of this makes buying a house easy. Right now, easy house sales are a rare thing. But making it easier is worth the effort, in the absence of an immediate drop in prices.

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