1) Remember who pays the agent
2) Don't be in a rush
- You are finance ready
- You would be happy for a quick settlement
- But getting value and being on or under your purchase budget is your most important consideration
3) Be information rich
- The quality of the location
- Problems and defects with the property
- Any issues in the surrounding area that may affect your property
- Ups and downs of the local economic environment
4) Ask lots of questions
- Why is the property being sold?
- How many people have been through it?
- How long has it been on the market?
- Has it been to auction and been passed in?
- Has the price been reduced since it was listed for sale?
- Are there any known defects about the property that the agent or vendor is aware of?
5) Conduct thorough research and due diligence
- How long the property has been on the market
- Its on-the-market history; any changes in advertised price since it was placed on the market
- Its sales history i.e how much the previous owners bought it for
- The median sale price and historical capital growth rates of the location
- How much comparable properties are selling for (and renting for if you plan to let it as an investment property)
- If you are planning on renovating the property then on-selling, how many similar properties in the area are for sale that have the features you intend to add
- An estimated market value based on all the above