You know what they always say about the festive season. Nothing much happens before Australia Day.
People are just getting over Christmas and beginning to wander back into work from holidays, but still enjoying beach weather and a general holiday vibe.
And for most of January, real estate agents and other professionals that overlap with the industry such as conveyancers, accountants and financial advisers, also take their holidays.
Somehow, over the years, we all seem to have agreed that it’s best to sell property in spring and autumn. But that doesn’t mean there are no properties for sale. And now might be the perfect time to swoop on a bargain.
Why now for bargains?
If properties are listed at this time of year, it was likely a reluctant decision by the vendor to sell. They may have had no option’ perhaps forced to sell because they were unable to meet rising mortgage repayments; or maybe the home is a deceased estate.
Either way, they will be more open to a bargain price as they need to sell.
Many of the properties on the market in January will also have been listed since late last year.
Their selling agents will not be pleased they were unable to seal a deal before Christmas and will be extra keen to make a sale happen because the longer they languish on the market, the less appealing they will seem to buyers.
Less competition from buyers
Anyone who has been trying to buy
property during the listings droughts of recent years will know just how
exhausting it is to constantly be getting outbid by crowds of other buyers.
While there may be fewer properties on the market to choose from over the holidays, there will also be fewer buyers to fight it out with for what is available. Competition is what drives prices out of reach for buyers and can be the difference between a positive or negative cashflow for investment properties.
So why not strike when everyone else
is hosting BBQs or lounging by the pool? There will be much less competition standing
between you and a bargain investment.
Things to consider when buying
If you see a property you like and have a price in mind that makes it a worthwhile deal, contact the real estate agents and let them know you’re serious and ready to transact. Agents are more likely to consider genuine, hassle-free offers for a property if they aren’t having their door bashed down by eager buyers.
For an agent, an extra $10,000 or $20,000 on a sale
price won’t make much difference to their commission and they are likely to
advise their vendors to accept your competitive offer and get the deal done.
If there is one thing you should try and insist on however, it’s a settlement period that’s long enough to make sure you are not undone by factors out of your control.
You want to make sure the professionals you need to facilitate the deal are back at work before you have to finalise the purchase.
You’d hate to miss settlement because your mortgage broker is overseas or because the bank is understaffed and takes too long to process and approve your loan application.