Have you been keeping a close eye on the market lately?
Haven’t we all! It’s hard to believe some of the crazy things going on at the moment. This makes it all the more important to take action so you don’t see your dreams like you see a jet fighter…………disappearing rapidly into the distance.
Here’s a good example:
A recent client had decided on a property in the southern Sunshine Coast area. Here at PPBA, we had found the property, carried out the due diligence, advised the client, who decided that this was the one and began negotiations with the selling agent. We knew that our offer would need to be good and up with the current trend to be a chance and to keep other offers at bay. The client decided that they would be happy paying close to the asking price as the property was in excellent condition. They were also aware of the amount of competition in the market. The offer was not too far under the asking price. However, the selling agent came straight back, saying that they had already received an initial offer at almost $20,000 over the asking price. Can you believe that? The first offer at $20k over the asking? That put the property above my clients’ budget.
Was this an agent ruse to get my client to pay more? Possibly. However, given the current market and my client’s offer of near the asking price, you could very well understand that the property, which went ‘under offer’ very shortly after, did so with an offer well over the asking price. We’ve even heard of auctions going more than $100K over market value! Now, it’s easy for buyers acting for themselves to get caught up in the emotions at auction. It happens all the time. However, paying more than $100k over market value is pure lunacy.
Back to the drawing board for PPBA as we prepared the client’s second choice. SUCCESS!! We managed to obtain the next property at $5k under the current market value. Do you reckon the client wasn’t happy about that? They were ecstatic after thinking that they wouldn’t get a home unless they paid $$thousands over the market value. That’s the state of the market at the moment. Property can easily fly away from you at a great rate of knots.
What is the meaning of it all?
With many property pundits, including the ‘big four’, estimating growth over the next 1-3 years at around 10-20% and even up to 30%, you can make money by getting into the market now. Don’t believe me? Take the above example for instance. Had this client purchased the initial property 1 or 2 months earlier and sold it now, in just 2 short months they would have made around $20k. Not bad hey? That’s around $10k/month. Let’s break that down even more: assume 30 days/month, that makes it over $333 per day. So you go to bed one evening and when you wake up, you’re over $333 richer than when you went to bed, then the same the next day and so on and so on. If you aren’t in the market yet, then when you wake up, you’re looking at paying over $333 more for the property that you didn’t buy yesterday.
Now how are you sleeping knowing that your dream home will be a further $333 away when you wake up tomorrow?
If selling your current property is holding you up, let us know. We have associate agents who can sell your property for you, while we get on and find your new home. Two birds….one stone and everything is done for you.
Sleeping pills can help you sleep, PPBA helps you make money while you sleep. If you want to make money while you’re asleep, call us here at PPBA and we can get you in the market as soon as possible…….sometimes even sooner.