Is the Quest for 100% Costing You In a Moving Market?

We enjoy our home-finder briefs, but the process is enormously different to our investor briefs  at the strategy phase.We don’t look at metrics, nor do we cover off rental yields or vacancy rates. We just  focus on two segments, but they are often complex, difficult and confronting for buyers.  These two critical steps upon commencement of the assignment involve:

1. sorting the ‘must-haves’ from the ‘nice to haves’, and
2. confirming the feasibility of the brief

Without these two aspects signed off, the search is at risk of being fruitless.

We meet buyers every week who have been searching for a long time. For some, a long time can be more than a year.  When we sit down with new clients who have been on the quest for a home in this remarkably strong, moving market, the sense of defeat, frustration and financial loss (relative to what was affordable two years ago) can be devastating for them.

While we don’t like to rush any client, we understand that a strong market pace can price a buyer out of a specific market within a matter of months. It is for this reason that our process addresses the two essential factors in an intensive and rapid time frame. Surprising for some buyers, just sorting out the wishlist items and talking about the feasibility of their wishlist can make a profound difference to their search-areas and chances of success.

There are many reasons why buyers struggle to do this part of the strategy themselves. Some of these reasons include: 

• an unwillingness to accept that the market has moved as much as it has
• maintaining a glimmer of hope that they’ll be able to find that elusive bargain
• searching in the wrong areas, or for the wrong properties based on their budget
• not being on the same page as their partner
• searching for something which either doesn’t exist, or is so rare that the chances of it coming up for sale are less than one per year

A clear, sensitive and honest conversation about the reality of the wishlist versus the budget and the availability of that type of property is the first step we take on our journey with our clients.

A recent and very special brief we had the pleasure of assisting with was the search for a large, family period home with a garage and private yard. Their initial search area covered Yarraville and Seddon, but knowing these suburbs as intimately as we do, our concerns were not so much about affordability, but availability. The chances of a 5BR house offering all of these attributes in these two suburbs coming onto the market were less than an average of one every six months. In a market running at ~10%, this could equate to a $100,000 increase in value over a six month period for such a property. We recognised early that we needed to cast the net wider, and focus on some good, inner ring suburbs which could offer this type of property in higher abundance. Once we included Brunswick and Brunswick West in our search map, our clients could enjoy a more encouraging line up of potential properties.

We proudly secured this beauty last week for them.

A more recent assignment for us with a lovely family involved another important facet; their ability to customise a house into the right sized home for them. Appreciating what sort of work they’d be prepared to take on, the possible cost of the works, and more importantly, their ability to live in the house as-is for now were all important discussion items for us. After focusing their search on areas which would offer generous yard for their growing children, a pretty houses and a great community, we spotted this gorgeous bungalow in Newport. The property had a great family feel already, but wasn’t the size or configuration that they’d ultimately need. However it offered enough for now, and the generously sized and fully lined bungalow in the backyard could double as a play room. The layout could lend itself to a second story extension, the second toilet would help with the issue of a crowded shared bathroom, and the precedence of large family home extensions in the street offered much encouragement.

We factored in the extension budget when we made the offer and after a week of tough negotiations, this lovely family secured their home.

Wishing each of our lovely purchasers a very  happy home….