Don’t Buy Property On The Rebound!

So, you’ve fallen in love. You’ve made all the right moves, but on one unlucky Saturday morning, your heart is broken by the smack of a gavel. 

Outbid at auction; somebody else will build a relationship with your dream property. 

Now, what you do next (after the tears) is crucial. Because buying a property on the rebound is very common and rarely ends well! 

Buyers who lose out on their first-choice property at auction tend to panic buy as they fear missing out again. Maybe it’s something new on the market that’s unsuitable, or the house in the next suburb sitting somewhere near the bottom of their search list.

This fear is being caused by the highly competitive market that has emerged over the past few months, and there are a few reasons why buyers have found themselves here. 

Firstly, there are lots of people looking to buy and only a few properties on offer. Vendors were scared off by the headlines of falling house prices, and a general lack of stock left many with nowhere to go, so they stayed put. 

While that sentiment is beginning to change because of rising sale prices and auction clearance rates, it will be a few months before buyers feel the difference in the market and the benefit of more options. For now, stock levels aren’t going to budge. 

It’s been the talk of the town for the entire year. The Reserve Bank’s war on inflation and another potential change to the cash rate cause much uncertainty. Buyers are keen to snap up a property and lock in their mortgage terms before any more of their budget is stripped away. 

First-home buyers also contribute to the bullish market as they rush to take advantage of stamp duty relief, opting to pay the annual land tax while the option is still available. When the new Labour Government changes stamp duty rules again, first-home buyers’ deposits will take a hit, so it makes sense to bid up right now when they find something they love. 

These factors are a recipe for buyers to make rushed decisions and end up with a rebound property they barely like, let alone love! Rebound homes are full of compromises and only seem like a good idea because they’re available and on budget. 

The key to avoiding a rebound buy and securing your future with a property you love is to be prepared and stay decisive. 

NEVER deviate from your checklist, and only consider properties that meet your expectations and top priorities. Get all the expert help you can to ensure your expectations align with the reality of the market. 

With that checklist in place, you’ll be able to avoid wasting time, move at the pace of the market and find yourself a keeper, not an ill-advised fling. 

If you need help finding your perfect match, our team is on hand to help.