Boban John
To effectively navigate the current property market, especially as a buyer, it’s crucial to be proactive and informed. One key strategy is to leverage the advantage of pre-market listings, which are often made available through selling agents. Setting up alerts to receive these listings can significantly enhance a buyer’s chances of finding the right property.
Understanding Pre-Market Listings
Pre-market listings refer to properties that are not yet publicly advertised on major real estate portals. These listings are often shared by selling agents within their networks before the property is officially launched to the broader market. This can provide buyers with an early opportunity to view and potentially secure a property before competition increases.
Why Pre-Market Listings Matter
• Reduced Competition: Access to pre-market listings allows buyers to avoid the frenzy of open market sales. In a competitive market, especially in areas like Sydney, where there are more buyers than properties, this can be a significant advantage.
• Potential Cost Savings: By accessing properties before they are widely advertised, buyers might be able to negotiate a better price without the pressure of multiple competing offers. This is especially true in private treaty sales where the buyer is not sure if the selling agent is being truthful with the offers process.
• More Time for Due Diligence: Early access allows buyers more time to conduct thorough research and due diligence. This includes inspecting the property, reviewing strata reports, and understanding any potential issues before making an offer.
• Access to Exclusive Opportunities: Many properties are sold off-market, meaning they never get listed publicly. A buyer who only looks at publicly listed properties may miss out on these opportunities.
How to Access Pre-Market Listings
1. Engage with Selling Agents: Establish relationships with local real estate agents. Selling agents often have a database of potential buyers who receive pre-market alerts. Contacting local agents and letting them know your preferences will help you get on their list.
2. Use Buyer’s Agents: Buyer’s agents have extensive networks and relationships with selling agents. These connections can provide access to off-market and pre-market properties that are not widely available. A buyer’s agent can proactively seek out suitable properties through their contacts.
3. Set Up Property Alerts: Utilise online platforms that allow you to set up property alerts based on your preferences. These alerts will notify you of new listings, including those that may be pre-market. Homeowner.com.au, as an example, has a specific category on its alerts system for pre-market/coming soon listings.
4. Regularly Monitor Market Activity: Stay updated on local market trends and new developments. This can be achieved by keeping an eye on real estate websites, attending open homes, and following market reports. This knowledge will help you know what to expect in your desired locations.
The Role of Buyer’s Agents
The use of buyer’s agents has been on the rise in Australia, with about 3% of residential property transactions involving a buyer’s agent. In the United States, about 50% of buyers engage a buyer’s agent, and it is predicted that the market in Australia will continue to grow.
• Access to Exclusive Listings: Buyer’s agents can provide access to off-market properties through their networks.
• Expert Negotiation Skills: They can negotiate favorable prices and terms on your behalf.
• Due Diligence: Buyer’s agents handle the detailed research and inspections to ensure you are buying a quality property.
• Time and Stress Savings: Hiring a buyer’s agent can save time and reduce stress by managing the complexities of the buying process.
• Objective Perspective: A buyer’s agent can offer an unbiased opinion on a property, helping buyers make decisions based on logic and not emotion.
Market Trends and Conditions
Understanding the current market is essential for buyers. The Australian property market in 2024 is characterized by several key trends:
• Increased Buyer Activity: There has been a strong increase in buyer activity. This means competition for desirable properties is often high.
• Limited Supply: While new listings have increased, especially in major cities like Sydney and Melbourne, total supply remains constrained. This makes pre-market access even more important.
• Rising Prices: In many areas, demand continues to outpace supply, leading to price growth. Buyers need to be prepared to pay competitive prices in these markets.
• Shift in Buyer Preferences: Escalating costs of new home builds have shifted demand towards established housing. This can increase competition in the established housing market.
• Population Growth: Rapid population growth is fueling demand, especially in major capital cities.
First Home Buyer Considerations
First-time home buyers can particularly benefit from pre-market access and the guidance of a buyer’s agent.
• Navigating Complexities: First-time buyers are often unfamiliar with the property purchasing process and may benefit from professional guidance.
• Avoiding Mistakes: A buyer’s agent can help first-time buyers avoid costly mistakes, such as overpaying or overlooking crucial property issues.
• Financial Assistance: First home buyers should look into government grants and schemes available to them including the First Home Guarantee, the Family Home Guarantee, the Regional First Homebuyer Guarantee, and the Victorian Homebuyer Fund.
• Dealing with FOMO: First-home buyers can suffer from the fear of missing out, which a buyer’s agent can help with.
• Education: Buyer’s agents can educate first-time home buyers on the process, especially if they are overwhelmed by online information or are getting outdated advice.
The Importance of Time
Time is a valuable resource during the home-buying process. The search for a property can take months, sometimes years.
• Time Spent Searching: Buyers can spend hours each week searching through listings and investigating areas. This can lead to a significant opportunity cost.
• Time Spent Inspecting: Inspecting properties and attending open homes increases the time commitment.
• Potential for Repeat Effort: If a buyer is unsuccessful in securing a property, the entire process must start again, which can be time-consuming and frustrating.
• Saving Time: Buyer agents can save buyers time by handling many of the steps in the home-buying process.
Practical Tips for Setting Up Alerts
• Use Multiple Platforms: Utilise various online real estate portals and apps to maximize the reach of your alerts.
• Be Specific: Define your criteria for location, property type, price range, and desired features in your alerts.
• Regularly Review: Stay engaged by reviewing and updating your alerts regularly to reflect any changes in your preferences.
• Stay Informed: Follow local real estate news and reports to stay informed about market trends.
Conclusion
In summary, recognizing the value of pre-market listings, actively engaging with agents, and leveraging the expertise of buyer’s agents can significantly enhance your chances of securing the right property. In today’s competitive market, every advantage is crucial, and setting up alerts is a strategic step toward achieving your property goals.
