How important is a buyers’ agent in a hot market?

The price of real estate is soaring in most markets around the nation – growing at the fastest rate in more than 30 years.

In fact, in Sydney and Melbourne, the median dwelling values have both recently hit record highs, according to CoreLogic.

Other smaller capital cities, such as Brisbane and Adelaide, as well as many major regional locations are experiencing their strongest market conditions in many years.

There are multitude reasons why prices are booming, including super-low supply levels and interest rates, pent-up buyer demand, and expats bringing new money home with them.

Plus, it doesn’t seem likely that these strong market conditions will fade anytime soon.

Indeed, odds are that prices will continue to rise over the short-term because of the strong competition amongst buyers.

Fear of missing out

The historically low supply of property listings in many areas is causing FOMO amongst buyers, which is pushing prices even higher.

Those with the deepest pockets are often the victor in high-demand locations such as in the inner pockets of Sydney or Melbourne, but also even in other less well-known locations in other parts of the country.

However, it doesn’t have to be that way.

With total property listings sometimes at decade lows – and most buyers understanding this is the current situation – then this can result in over-the-top offers for properties because of their fear of missing out.

It is this scenario that is seeing more people work with buyers agents, who often can learn about properties before they hit the market, which can give potential purchasers a head-start on the competition.

It might seem counter-intuitive that off-market deals would still be on the table in hot market conditions, but they can, and do, still happen.

Sure, the volume of these types of opportunities might be reduced, but some sellers will always prioritise privacy and other important personal factors over the sale price of their properties.

Prevent overpaying

Another reason why more people are choosing to work with a buyers agent is to help them understand market prices and to prevent them from overpaying.

Sure, many properties are selling well above what might seem logical, especially in Sydney’s most desirable precincts, and sometimes a homeowner needs to pay what is necessary.

However, investors always must remain unemotional about their property purchases, which can be a difficult thing to do in rising market conditions.

Professional buyers’ agents provide advice and evidence on why they recommend certain locations to their investor clients, with part of that expertise including the ideal numbers that need to be achieved such as purchase price and weekly rents.

With property prices increasing rapidly – and with more growth forecast – there does need to be some flexibility on potential purchase prices, but never to the point that the property no longer makes any financial sense whatsoever.

Some people are paying 2024 prices today because they naively expecting prices to increase significantly more in the years ahead, when that growth is in no way guaranteed everywhere.

A sounder strategy is paying market price to buy a property in a location primed for superior growth and strong rental demand in the years ahead.

That way, investors are not risking overpaying for a property that may not be worth as much as they paid for it in a few years’ time.

That’s another reason why working with a professional buyers agent is a way for investors to prevent emotion getting the better of them – and making a financial misstep that will long outlive the current booming market conditions.

High-Performance Property Investment in
5 Simple Steps

In this free guide, you will learn how to Implement the same strategies that led me to build a $3.5 million dollar portfolio in less than six years. – Daniel Walsh

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PRIVACY POLICY

Respecting your Privacy

Your Property Your Wealth Pty Ltd (YPYW) is committed to supporting the Australian Privacy Principles for all fair handling of Personal Information which set clear standards for the collection, use, disclosure, storage of and access to Personal Information collected during the course of business operations and compliance with the Privacy Act 1988 (Commonwealth) and its amendments (the Act), and the Australian Privacy Principles (APPs) set out in that Act. You can see the full text of the APPs online at the Office of the Australian Information Commissioner’s website at:

http://www.oaic.gov.au/privacy/privacy-act/the-privacy-act

Personal Information means your name, mailing or residential address, telephone number, email address and other transaction and registration details including the company you work for and your role and financial information, including credit card information and information collected from credit reporting agencies.

Our respect for your rights to the privacy of your personal information is paramount.  We have policies and procedures in place to ensure that all personal information, no matter how or where it is obtained, is handled sensitively, securely and in accordance with the APPs.

This Privacy Policy sets out:

  • What sort of personal information is collected and stored;
  • How information is collected and used;
  • What happens if you choose not to provide the required information; and
  • How you can request access to the personal information we hold about you.

From time to time it may be necessary for YPYW to review and revise this Privacy Policy. We reserve the right to change our policy at any time. Amendments or replacements of the Privacy Policy will be posted on our website.

Collection of Your Personal Information

We only collect personal information relevant to our business relationship with you so that we can provide our services and products. We may collect your personal information:

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  • when your register on our website;
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Is your personal information secure

Where you submit personal information, we manage it by using up-to-date techniques and processes that meet current industry standards to ensure that your personal information is kept secure and confidential. We also take measures to destroy or permanently de-identify personal information if it is no longer required.

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You acknowledge and consent that by providing your personal information to us that we may use and disclose your personal information for the purpose for which it was collected or for a related or ancillary purpose such as:

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What happens if you do not want to disclose personal information?

You have no obligation to provide any personal information requested by us, but if you choose to withhold personal information, we may not be able to provide you with the products and services that depend on the collection of that information.

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You may contact us at any time in writing and request that we remove and delete your stored personal information.

Providing Personal Information About Another Person

You represent to us that where you provide personal information to us about another person, you are authorised to provide that information to us, and that you will inform that person who we are, how we use and disclose their information, and that they can gain access to that information.

Linked Sites

YPYW’s website may contain links to websites which are owned or operated by other parties. You should make enquiries as to the privacy policies of these parties. We are not responsible for information, or the privacy practices of such websites.

How can you access your personal information?

You may in writing request access to personal information that we hold about you. We will provide you with access to personal information in accordance with the Act and APPs and we may not grant you access to the personal information that we hold where the APPs allow us to do so. If you are refused access to information, we will provide you with reasons for the refusal in writing.

How to contact us

If you have any questions in relation to privacy, please contact us on 0490 912 045 or email Daniel Walsh – admin@ypyw.com.au. For more information about privacy law please visit http://www.oaic.gov.au/privacy.

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In this free guide, you will learn how to Implement the same strategies that led me to build a $3.5 million dollar portfolio in less than six years. – Daniel Walsh

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