Why a ‘buyers market’ doesn’t always make it easier to buy

The only thing that’s predictable about the property market is that it’s unpredictable! One day, sellers are loving life as the market runs hot and properties sell for hundreds of thousands above suburb records.

Then, prices drop through the floor, and everything shifts into a buyers’ market. The game has changed, and the rules have been rewritten. You have to think a few steps ahead to get the edge.

You will be playing against experts who sell houses daily, so you’re up against it from the outset! But that’s not to say there aren’t deals to be made. However, you must approach your property search with a clear game plan and understand that a buyers’ market doesn't guarantee an easy ride.

Here’s what you need to keep in mind…

Negotiations start the second you walk in the door

Many skilled negotiators in business think they have what it takes to negotiate a property purchase. In the odd case, that may be true, but many find themselves out of their depth. That’s because negotiating to buy a home is an entirely different process filled with emotions from both the seller and the buyer.

As Buyers Agents, we begin the negotiations process the second we step through the door of a property. We know which questions to ask, who to ask, and when to ask them. We’re on a mission to uncover everything we can to form a strong position in negotiations.

You have to be proactive in your search

With uncertainty over house values, vendors and their agents aren’t spending much on the flashy property styling and extensive marketing campaigns they once were because they don’t want to risk not getting their return.

As a buyer, you no longer have the benefits of websites and magazines filled with endless listings. You must be proactive and dig deeper for those hidden gems. Having the vision to see past poor styling and the ability to instead focus on capital growth will also help.

Micro-markets still exist

When you read the property news, they often comment on macro markets and broader trends emerging across the entire city. But real estate life in Sydney is not quite so simple. Like every Sydney suburb has its own identity, it also acts as its micro-market with trends, patterns, vendors and buyers unique to that area.

There are plenty of micro markets within Sydney that buck macro trends and are resistant to downturns in the market, leaving property prices steady and competition stiff. You also need to consider that stand-alone houses perform completely differently from apartments and duplexes.

Some properties will always attract premium prices

In Sydney, a finite number of homes tick all the boxes, and with more higher density residential developments popping up, those unicorn properties will only continue to increase in price. Think large homes with backyards on quiet streets, restored period features, onsite parking within walking distance to schools, shops, transport and green spaces.

Class properties will always attract a premium, even in a quiet market with rising interest rates.

Many vendors don’t have the same motivations to sell

When the market was hot, many people sold their houses simply because they wanted to cash in on the crazy prices. Now that things have changed, these sellers are less motivated to move unless they get the price they want.

You then have to consider that the economic turmoil we’re facing will scare a lot of sellers out of listing their property. With more people staying put, there can only be less inventory and more of a need to get top dollar who decide to move.

In saying that, the right advice, some additional research and support can go a very long way in helping you navigate changes in the market. If you’d like a tailored strategy, please don’t hesitate to contact our team.