Keep missing out on properties?

11 Jan

Listen to Albert Einstein - “Insanity is doing the same thing over and over and expecting different results”

If you have tried to buy two or more properties at auction and missed out both times - you need to be doing something differently. The goal is not to attend multiple auctions and finally secure a home, the goal is to secure the home now.

If you keep repeating the same actions e.g. Looking at the same types of property, in the same location, with the same price guide - why would you suddenly expect the result to be different? Likely, because you are invested emotionally and it's not necessarily the answer you want to hear.

This is the answer you need to hear

Especially in this current market where property prices are now rising and we have seen reported increases for the past three months.

Why are you missing out?

If you miss out on a property once, through auction or otherwise, take the time you need to feel ok about it. Then objectively try and review why. Likely reasons are:

You were trying to buy a property that is above your budget range on any given day / You've been lured in by a price guide which gave you a false sense of security
Unsure how to value property. You thought the agent was bluffing about another offer, thus holding back on what you were prepared to pay and lost out to another party
You could not line up all your ducks as fast as another buyer e.g. You were still waiting on contract review and someone else was ready to go

What can you do if you keep missing out?

If you find yourself consistently missing out on properties then here are some things you can do:

Validate that at least 3 properties have sold in the last 3 months, that you could have bought and were within your budget. If you can't find 3, then do not blame low stock levels. Your brief may be unrealistic, and/or without a buyer's agent sourcing proactively on your behalf, you are unlikely to magically find something pops up. You either need more money, or more flexibility with your brief.
Consider how you are valuing property, and if properties consistently sell for more than what you think they are worth, it may be that your valuation method is not working for you. After all, the market sets the price.
Ensure you have a conveyancer/solicitor who will turn around a contract review in a matter of hours, not days.
Understand that once you see a property you like, the ability to move quickly and have an unconditional offer in within hours is paramount.
Don't reveal all your budget cards to an agent, but do be open, honest and transparent about your interest in a property

How long have you been looking for?

In my opinion, the key reason it takes home buyers an average of 6 - 12 months to buy a property is because they spend the first six months trying to find what they can't afford. They eventually work this out after six long months, adjust their brief accordingly (consciously or unconsciously), and then start again. Usually in this second six month window they find something with a few further trade offs and at that point the price is right.

What if you had purchased ten months ago?

If you are keen to skip the first six months, and reduce the second six months down to two months - consider hiring a Buyer's Agent. For most people, the mental concept of the fee is the prohibiting factor. However, if you've been looking for a year now, and you could have purchased 10 months ago - the fee would have paid for itself at least fives times over by now.

Don’t drive yourself insane

If you continue to miss out on properties then you need to start doing something differently now. Otherwise, another 12 months from now, you still won't have purchased.

The last 3 clients I purchased for had an average of 21 days from time of engagement to time of exchange. That is what having a realistic brief and someone proactively looking for you should look like!