Amidst the doom and gloom of multiple interest rates hikes, savvy buyers are snapping good deals. Good deals are still selling fast, and a fantastic deal will still sell within 3 days. And this is one such property. It was bought within 3 days of listing. Here is our story of one of our recent buys.
In the Melbourne real estate market, people say you must be crazy to sell your house over the Christmas period. Many buyers (and agents) are away on holidays, and it is pointless selling when no-one is buying. This is one-such property. It was listed the week before Christmas.
How Do Buyers Advocates Select The Properties We Buy?
We're always monitoring the market for good deals, and this caught our attention. Due diligence showed this property is within 5 minutes of major universities (yes, 2 universities), major shopping mall, and hospital. A second set of shopping malls and hospital is a short 15 minutes away. The bonus is, it is on a large 900sqm block of land, with an outstanding potential for further manufactured growth. Research data also showed the location has already experienced 40-50% growth in 3 years, and it has another 20%+ more growth potential in the near future. It is what our client was looking for, and it ticked all boxes. We presented this property to our client and we were given the go ahead to acquire it.
We are expecting strong buying competition for this regional Victorian property, but we are not expecting the competition to be THIS strong. The inspection was organised on day 3 of the listing. 8 other groups of buyers were at the inspection. These are very healthy numbers given we just had 7 interest rates hikes in 7 months, and it is right before Christmas. We have to be diligent with our due diligence when buying in regional Victoria. Our due diligence shows this is a is A-grade investment property, and it will sell fast. Very fast. Two (2) offers vrey received before the inspection ends.
How Do Buyers Advocates Made Offers For the Properties?
When our Buyers Advocates inspects a property, we include a preliminary assessment of its condition. We are trained builders and our buyers advocates have the right experience to assess the condition of the building. This one passed our walk-thru inspection, and with our green-light from a subsequent formal inspection, our client had given us the go-ahead to purchase it.
We know this is grade A investment property, and we were expecting a few other offers. So we had to be different. While our Principal Buyers Advocate, Rayson, was driving back to Melbourne, he was mentally putting together an offer strategy. It has to be creative, and something different.
That evening, we discussed a few offer strategies with the clients. This strategy was so specific to this client and property that we are unable to disclose the details. Some parts of the offer strategies were also untested, but following discussions with our network of finance, legal and real estate professionals, we are pretty certain that it can be done. Our offer price was going to be fair. We are always after the best deal for our clients, and we do not want to overpay. Thus, price is not going to be our strong selling point in this offer.
The next day, we presented our offer. The agent confirmed there are 7 other offers, and our offer price wasn't the best. There were other higher offers. But our offer was "the most attractive".
Outcome of Our Offer
Just two days before Christmas, the agent called. Our offer was accepted at $430k! For our investor client, it was the perfect Christmas gift, timed to perfection.
The selling agent expressed relief that the offer came from a professional Buyers Advocate, acknowledging that "BAs like us aren't sitting around." They understood that when we present an offer, it's backed by thorough buyer qualification and market knowledge. We know the true value of the property, and we ensure our clients are fully prepared and financially capable before the offer is even made. This level of professionalism reassures the sales agents that they won’t be wasting time with unqualified or unprepared buyers.
With our clients, the only hurdle was potentially the price. It wasn't the most attractive price, but the professionalism by being represented by a professional buyers advocates and the preparation of the offer package and deal make our offer the easy choice.
The property was successfully settled in February 2023. We then handpicked one of the top property managers in the area to oversee the rental, and it was leased within a week—thanks to the prime location and low vacancy rate.
Prices are Growing for Good Properties
In just two short months, by March 2023, similar properties in the same neighborhood were selling for $480k to $500k—a remarkable 10% growth in value in 2 months. But our client isn’t selling just yet. They have bigger plans, and we’re working closely with them to unlock the full potential of this property and maximize their investment.
Fast forward to September 2024, and the property is now valued at nearly $600k, marking an impressive 40% increase in just 18 months. Even more remarkable is that this growth occurred during a period of rising and high interest rates, proving that with the right strategy and expert guidance, significant gains are possible, even in challenging market conditions.
Help for Home Buyers and Investment Property Buyers
This is just one of the examples of how we turn property dreams into reality, combining expertise, timing, and a commitment to our clients’ success. If you are after a similar good deal, get in touch. While we cannot guarantee every property will be as good or similar, you can be certain that we will get the property for the best price for you.
Get in touch now if you want the confidence to grab your prime property in this hot market.
More home and investment property buying news and tips here.
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