Help! FOMO and there is nothing to buy until February!

Discussion in 'The Buying & Selling Process' started by KateAshmor, 21st Dec, 2019.

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  1. KateAshmor

    KateAshmor Victorian Conveyancing Lawyer Business Member

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    Melbourne
    Over the last few weeks, I've been asked the same question by a huge number of people:

    I am desperate to buy something before prices jump next year, but the real estate market is now in hiatus. What can I do right now?

    Here's a post that I hope provides a practical answer: my 3 tips for what to do over the next 5-7 weeks before the real estate market hits the Autumn peak:

    1. Think laterally
    Try contacting a couple of market-share agents in your desired suburbs and ask to be notified about off-market listings (properties for sale that are never advertised).

    Drive around your preferred streets and leave friendly notes, with your mobile number, in letterboxes or under front doors if any properties catch your eye. Some people are very happy to sell if they can avoid agent, marketing and property preparation costs.

    2. Review your wishlist
    Can you compromise on your price bracket, or vary your criteria and expectations? Consider main roads instead of premier streets, villa units instead of houses, one fewer car space or bedroom, etc.

    3. Be patient
    Don't panic and buy a cheap lemon that will cost a fortune to fix up. Don't suspend common sense. If something looks too good to be true, it is. Seek a second opinion from a family member, friend or colleague with relevant experience and never sign a contract unless it has been reviewed by a property lawyer or conveyancer first.

    Relying on the cooling off period could cost you a huge amount of money (see the fine print in the contract) and gives you no leverage to negotiate any terms - it's "take it or leave it".

    Good luck and happy holidays! :D
     
  2. Shogun

    Shogun Well-Known Member

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    A bit of a worry if FOMO is reason for property price increases
     
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  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Great post @KateAshmor

    I think we should also add a fourth point

    4. Target old, stale listings
    Sort the listings in your area oldest to newest and see if there is some stale, older listings which are a bit above your price bracket and start making offers to those at your budget price. 95% of the time it will be a no, but for that 5% you could be getting something that is better than you hoped and a vendor that is a little more desperate to sell.
     
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  4. Kelvin Cunnington

    Kelvin Cunnington Well-Known Member

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    I wonder how these people know that prices will "jump" next year?
     
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  5. Trainee

    Trainee Well-Known Member

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    The same people who knew syd mel would keep falling in 2019.
     
  6. lettert

    lettert Well-Known Member

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    Is letter dropping really a viable option ie has anyone done it with success? I'm targeting particular streets or a small-ish area that I want to buy in, stock doesn't come to market too often.

    But if someone letter dropped me, I wouldn't bother contacting them - I'd assume it's just agents' tactics. I did end up selling a property to a neighbor once, they contacted me in person so I knew they were legit. Before that I'd received "letters from cashed-up investors ready to buy" which I'd put straight into recycling....
     
  7. lettert

    lettert Well-Known Member

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    In the area I'm looking, it's the difference in market behavior in 2017/18 vs 2019. 2019 june prices started to rise. We went to some open houses last weekend, they were very very busy.

    Who knows what prices will really do - these are ppor-style homes so once in a while someone overpays by a lot. Once in a while a property doesn't go at auction and ends up selling much lower than reserve.
     
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  8. Wendy Chamberlain

    Wendy Chamberlain Well-Known Member

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    Melbourne
    Great article @KateAshmor and sage advice

    One of the major drivers of prices in Melbourne in the second half of last year was simply that... FOMO. I was seeing it every weekend at auctions.

    We went from 0 bidders pre election to 5-8+ bidders from Sept/Oct onwards. Sometimes it looks like a feeding frenzy and the buyers really are behaving like it is this house or nothing, so they stretch their budgets to try and buy no matter what.

    Very interesting behaviour to observe.
     
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  9. See Change

    See Change Well-Known Member

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    we’ve done it with success and suggested it to a friend who used it successfully . There are various reasons why it works .

    Lack of faith / trust by some vendors in the market . Wanting to avoid agents fees . Ignorance . Fear

    Friend wanted to buy in west Pymble but nothing suitable in the market . Did a very localised mail drop along the lines of wanted , family home , three kids to grow up in theirs area as they already go to local school . The neighbour of a elderly resident saw it and knowing their neighbour was thinking of selling told them and my friend ended up buying it .

    We had 10,000 flyers deliver to several target suburbs saying we were looking to buy a family home in their area . Looking to save on agents fees .

    had about ten phone calls , half of them were investors curious about what we were doing , three of those had unrealistic expectations . Two were good opportunities . Bought one and just missed out on the other. This was in Townsville . We’re in Sydney , but didn’t disclose that . Just mobile phone . If we were a bit more organised we should have flown straight up to meet the other we probably would have picked that one up as well .

    the one we bought is the onely time we’ve bought a place and the bank valuation came in above the purchase price .

    In you situation you have nothing to loose . “ The wife “ ( one of the most successful investors on somersoft ) used to go one step further and walk around the streets she was interested in talking to people. Not sure if she door knocked , but I wouldn’t be surprised if she did .

    cliff
     
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  10. sash

    sash Well-Known Member

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    Sshhhhh....this is exactly what I am counting on...selling a few..and it is incredible how impatient people are....