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Alice Springs, the vibrant heart of Australia's Red Centre, offers a unique and promising landscape for property investors seeking opportunities in regional markets. With its rich cultural heritage, stunning natural surroundings, and evolving infrastructure, Alice Springs presents a blend of advantages and challenges for those looking to invest in its property market.​ Positive Aspects of the Alice Springs Property Market One of the standout features of investing in Alice Springs is the attractive rental yields. As of the September quarter 2024, the median price for houses sold was $440,000, while units were at $312,500. During the same period, median weekly house rents increased by 5.5% to $580, and unit rents rose by 11.0% to $455. These figures translate to a rental yield increase of 1.1 percentage points to 6.9% for houses, highlighting the potential for solid returns on investment. ​ nteconomy.nt.gov.au The suburb of Sadadeen, for instance, boasts a median rent of $530 per week for houses, with a rental yield of 5.81%. Such promising yields make Alice Springs an appealing option for investors seeking positive cash flow properties.​ Challenges in the Alice Springs Property Market However, it's essential to approach the Alice Springs property market with a comprehensive understanding of its dynamics. The number of properties sold can be relatively low, indicating a less liquid market. For example, only 54 houses and 40 units were sold over the year leading up to the September quarter 2024. This limited transaction volume may impact the ease of buying and selling properties swiftly.​ nteconomy.nt.gov.au Security and safety can also be a concern at Alice Springs. Property buyers need to be selective with choosing the right locations. While most locations are decent, some pockets can indeed feel rough. Alice Springs Property Investing - Where are the Prime Investment Locations? When considering where to invest within Alice Springs, focusing on areas with strong rental demand and growth potential is key. Suburbs like Braitling have shown promising returns, with rental yields of 6.8% for units and 6.2% for houses, alongside a median house price of $455,000. Such areas offer a balance of affordability and return on investment, making them attractive to savvy investors.​ Outlook for Alice Springs Property Market Alice Springs, the vibrant heart of Australia's Red Centre, offers a unique landscape for property investors. Over the past decade, the property market here has experienced fluctuations, influenced by various economic and social factors.​ Historical Growth Over the Last 10 Years Tracking the Alice Springs property market over the last ten years reveals an overall upward trend. For those who invested a decade ago, property values have appreciated, reflecting the area's enduring appeal. ​ Recent Market Trends In the September quarter of 2024, the median house price in Alice Springs was $445,000, down 9% from $490,000 in the previous quarter. The median unit price also declined to $282,500 from $300,000. These figures indicate short-term volatility within the market.​ Market Outlook Looking ahead, the outlook for Alice Springs' property market is cautiously optimistic. While some experts anticipate a period of equilibrium in median prices and transaction volumes, recent developments, such as the approval of a 144-apartment project on Todd Street, suggest potential for growth and increased housing diversity. Navigating the Alice Springs Property Market with Professional Assistance Unlike some regional locations where the market is quite evenly spread, investing in regional markets like Alice Springs requires strong local knowledge and strategic insight. A wrong purchase can quickly result in the investor losing their capital. This is where assistance from a experienced buyer's advocate can be invaluable. Concierge Buyers Advocates , for example, offer over 20 years of expertise in property investment and home buying, with a success rate exceeding 99.5%. Their services include identifying suitable properties, negotiating favorable terms, and ensuring a seamless transaction process, all tailored to your investment goals.​ Conclusion - Alice Springs is Exciting Alice Springs presents a compelling opportunity for property investors willing to explore regional markets. With its strong rental yields and unique cultural appeal, it stands as a beacon for those seeking to diversify their investment portfolios. By partnering with experienced professionals like Concierge Buyers Advocates, you can navigate this market with confidence, unlocking the potential that Alice Springs has to offer.

Winning a "Best and Final Offer" A "best and final offer" (BAFO) is a term used in negotiations, in buying real estate, this is where all interested parties are asked to submit their absolute best and final offer by a certain deadline. This signifies the end of the campaign negotiations and is a crucial stage for buyers. If you are in the property market, the Best and Final Offer (BAFO) selling strategy along with Auctions are two of the popular ways to sell properties in the Melbourne property market. Most people are familiar with open auctions whereby all buyers gather at a set place and time, and openly bid for the property. But did you know the "Best and Final Offer" (BAFO) is a variation of auctions? Yes, the Best and Final Offer sales method is a different form of Auction. But what exactly is a "Best and Final" Offer? And what should you do to win this? What is a "Best and Final" Offer? The "Best and Final" Offer can also be known as a closed bidding or closed auction. In this method of auction, bidders are asked to make their formal offers, usually in writing, without knowing who the other bidders are and what their competitors' offers could be . Some real estate agents may also called it: expression of interest (EOI); or sealed bidding; or sealed bids; or silent auction; or closed bid auction; or simply closed auction You can also look at the Best and Final Offer as a tender process, where interested parties submit their offers without knowing what other buyers are offering, usually within a short notice. Sounds complicated? Yes it is, and it is one of the techniques aimed at creating panic and anxiety, thereby forcing buyers to think with their hearts and make irrational offers for the property. Why are "Best and Final" Offer Auctions used? Throughout a typical sales agent's sales campaign, the agents need to gauge the level of interest in the property, and to get a feel of what potential buyers are prepared to pay for the property. Agents are usually skilled at finding out what buyers are prepared to offer. However, there could be times when buyers have no idea or refuse to disclose any budget information. So, in order for the agents to get a good feel of the level of interest, one cheeky way is for the vendors and/or sales agents to call a 'Best and Final Offer auction', and bring forth a pending auction. Holding a BAFO auction is also a quick way to sell the house (if the price is acceptable) and/or to force buyers to disclose where their interests sit. But that's not the only reasons why a "Best and Final Offer" auction is used. Some other reasons for using the "Best and Final Offer" closed auction include: the agent has genuinely received an acceptable formal offer from a buyer there are many interested buyers who refuse to disclose where their interests are the agent and/or the vendor wants to gauge the market interest the agent and/or the vendor wants to shorten the campaign the agent and/or the vendor wants to bring forward an auction without officially cancelling it Some agents believe this is transparent, as the offers are not subject to any negotiations (in theory). In practice, the fear of missing out (FOMO) will force buyers to bid against themselves, stretching their own "best offer". Inexperienced buyers will usually try to squeeze in a few extra dollars to try to "outbid other buyers". This Best and Final Offer process is not always transparent , as we will see in the next section. How do Best and Final Offer Auctions work? There are no right or wrong ways to run this Best and Final Offer process. But this is what usually happens: Vendor and Agent decides to call for a Best and Final Offer auction Agent informs all buyers who have indicated interests in the property Agent tells buyers they are accepting offers and interested buyers are to put in their "Best and Final offer" Agent gives buyers a dateline (can be as short as 4 hours) by when all written offers must be submitted Agent then presents all offers to the vendor. What happens next is where it gets interesting and can vary between campaigns, agents or vendors. The inconsistencies in processes and often poorly provided instructions, is also where the Best and Final Offer process creates the most controversies, anxiety and angst. This is where the BAFO process is not as transparent and fair as the sales agents thought. The selection process may take one of the following paths: Vendor may simply select the highest offer and end the sales campaign Vendor may choose the best 2 to 3 offers if they are very similar, and start a closed negotiation process with the bidders Agent may choose to give the highest bidder, a second chance, if their initial offer is not considered good enough Vendor may choose not to select any offers, if they believe none of the offers are attractive. The campaign will then continue to its planned public auction or end date. Problems with Best and Final Offer Auctions As with a typical property purchase and property auction, Best and Final Offer auctions are usually very emotional and stressful. This is intentional, as emotions, anxiety and stress are what cause buyers to think with their heart, and the resulting fear of missing out (FOMO) will usually lead buyers to stretch their offer, usually ending up with overpaying. Agents know that. Inexperienced and unprepared buyers always fall into this trap. However, experienced buyers and professional buyers agents would usually have no problems managing this properly for their clients. If you can afford it, always consider seeking the assistance of an experienced Buyers Advocates, to ensure you receive the appropriate advice for the property. Best and Final Offer auctions are usually: very overwhelming for the inexperienced buyers, such as first home buyers or buyers who have not done sufficient research and due diligence lacking in transparency conducted with urgency conducted with poor levels of communications Some interested buyers might not be informed of the auction, if the agents do not know they are interested. Or if the agents believe they have enough interested buyers, they may stop informing other less promising buyers, due to time constraints. How do you Prepare for a Best and Final Offer Auction? Treat your preparations for a Best and Final Offer Auction like a preparation for an Open or Public Auction. The tips given in our " How to win at Auctions " [ link ] can be used in this BAFO auction as well. Generally, to perform your best in the "Best and Final Offer", you need to: 1. Do your due diligence. Doing your due diligence is critical to preventing yourself from buying a property that doesn't suit you. Understand what you want from the property, why you want the property and your plans for the property. Knowing the real property market condition (not the one which sales agents want you to know) will help you understand the market demand for that property, in that particular area. Remember, every property is different, even if they are next to each other. 2. Know the real market price of the property Most buyers wrongly trusted the price guide in the Statement Of Information (SOI) provided by the sales agent. While the SOI aims to give you an indication of the price of the property, it usually does not mean the auction will end within the price range indicated in the guide. This article will explain why Statement Of Information is best read with a pinch of salt. . You should always do your own homework . If your research is very different from the price guide in the SOI, always feel free to ask why the agent thinks it should be so different. There could be a gold plated toilet in the house. Or some 1kg gold bars embedded in the bedroom. Or some termite infestation. Or a history of flood and/or water damage. However, more often than not, you are likely going to get a standard sales agent reply "that's based on sales data. We cannot predict how much buyers will be prepared to pay at the auction"... A good independent buyer's advocate who knows the area , location, street, buyer demand, supply situation, buyer demographics, property characteristics, will be able to confidently give you an idea of the auction price range. At Concierge Buyers Advocates, we are confident our appraisal will give you the most accurate view of the property value. Our property appraisal service comes with a price guarantee. If the sold price is more than 15% different from our appraised price, we will refund the cost of the appraisal. No questions asked. 3. Determine your offer This is where you have to decide what price you should offer for the property. No one can do this for you, but if you engage our buyer services, one of our buyer's agents would be able to work with you to help you: Assess the property value based on prevailing market conditions. Engage the sales agent. Know your serviceability. Determine how much you can afford to pay. Determine how much you should pay. Ensure you have sufficient funds for the initial deposit. Ensure you have the appropriate ways to pay the required deposit. Determine the absolute best price you are willing to pay for the property. If you've been following this article, you would have guessed, what happens next, gets murky and controversial. While the sales agent may indicate that you only have that "one chance to make the best and final offer", in Victoria, the agents or the vendors might choose to further negotiate or give everyone " one final chance to review your offer ". This means " one final chance to improve your offer ". This can be intentional, and the message you received is usually constructed to make you panic and second guess your offer. It almost always hint that "you are close enough but not good enough. Let me help you win this. You only need a bit more... ". You might decide to improve the offer, or if you've already submitted your best-best-best offer, choose not to improve the offer. Now, always bear in mind, you do not know who the other bidders are, and the bids they had submitted. Your bid might already be the highest, and the vendor and selling agent might just want to try their luck to extract a few more dollars from you. There might not even be any other bidders, and you are bidding against yourself. Interesting, eh? If you have done your preparations well, you should be able to confidently know what the likely scenario is. Our buyers agents would usually be able to advice based in their experience and insider intelligence on the property. Does the best offer in a Best and Final Offer Auction always win? Short answer: usually yes. But not always . It depends on the motivations for this Best and Final Offer auction. Remember, one of the reasons of holding this Best and Final Offer auction is for the vendor and/or agents to gauge the level of buyer interest. They may choose not to select any of the offers, and let the sales campaign run its course, and choose to proceed with the scheduled public auction. Usually, if done strategically, a genuine Best and Final Offer auction will almost always result in a sale. But it may not always be awarded to the buyer with the best offer. Can you submit a Conditional Best and Final Offer? A Best and Final Offer auction is treated like any other standard written offer. IE, you CAN submit a conditional offer , which includes typical conditions such as building and pest inspection clauses, finance clauses, or any other clauses you need or can dream of. And you should always submit a conditional offer if you're not confident, to protect your interest. It doesn't matter if the sales agent isn't pleased. You're within your rights and rules of the game to submit ANY offer, including a conditional offer. There's nothing worse than winning the auction, then discovering you do not have sufficient funds to pay, or if the house is termite-damaged. You'll be legally required to proceed with the purchase, if your unconditional offer is accepted, or you risk heavy penalties. It is in the vendor's own interests to consider all offers and conditions when reviewing and selecting the offers. They may select the offer with the most suitable conditions, even if it is not the highest price. We always tailor our offer to the situation, our successful offers for properties are often conditional offers and often not the highest offer received by the agent. How to win a Best and Final Offer Auction? So, you have been contacted by the agent, telling you they are holding a closed auction, and you have been invited to submit your best and final offer by X date and time? Here is what you should do... How to submit an offer in a Best and Final Offer Auction? If you have been contacted and informed by the vendor agent that they are accepting offers for the property and you need to make your "best and final offer", they should also inform you when the deadline is. You should always ensure you submit your best offer before this deadline. If the agent has not told you how or when they want to receive the offer, ask them. Make sure you ask how should you submit the offer and when the deadline is. Some may accept offers in an email. Some may have a formal offer form or an Expressions of Interest (EOI) form, that you have to fill in, sign and submit. Whatever it is, make sure the offer reaches the agent BEFORE the deadline. The agent is not supposed to accept any offers after the dateline. Not even if you are 1 minute late. Best and Final Offer Response Template While there are no standard offer emails, format or template for the Best and Offer (BAFO) response, some agents might provide a paper form or email template. In any case, do not be surprised if there isn't standard format. If it is provided, use the selling agent's preferred template, but if not, your best and final offer response should include these critical information, as a minimal: Your name Your contact details Your best and final offer price for the property Any conditions you want to include Preferred settlement date or period, typically 60, 90 or 120 days in Victoria. Note: Some agents or Expression of Interest (EOI) forms may ask for more information. Make sure you understand what is expected, and only provide information relevant to the offer. In this day and age of data privacy concerns and breaches, you don't want to provide too much information, as you do not know when your data will be stolen or misused. That said, if you believe the requested information is / can be discriminatory, you do not have to include as well. What happens after submitting your Best and Final Offer? Submitted your offer? Now it's time to wait -- and keep your fingers crossed. You'll get the outcome in due course. What happens if your offer is accepted? If your Best and Final Offer is being considered, the agent will let you know the next steps. You might need to be prepared to "review your offer" (aka "improve your offer"), or you might win it without any further dramas. If your offer is the winning offer, the agent will usually prepare the formal contract of sales for your signature, and you will need to pay the holding deposit. If your winning offer is a conditional offer, it's time to start working through the conditions. Know when these datelines are. Get those building and pest inspection organised, get that finance process started, or get any other due diligence processes done. And as they say, the rest is history. But what if you do not hear back from the agent? Generally speaking, if you have not heard from the agent within 4-6 business hours of the deadline (usually half a working day), your offer is 99% not being considered. If you have done your due diligence correctly, and you can truly say you've genuinely submitted your best offer, you know you have done your best. The property is not meant to be yours. There is always a better one somewhere. But you will have to go through the same process and buyer's anxiety all over again. It could be months or even years before you find another one. Chances are, in a rising market, you will be paying more for the same property or start looking in less desirable suburbs, the longer you spend searching. Should you call the agent? If you have not heard from the agent after 4 hours, call and ask for an update. If you get a vague reply, or non-committal and iffy reply, chances are, they have selected another offers. That's usually the bad news. But the good news is, because they have not outright rejected your offer. Your offer is their back up offer. If the other offers fall through, you might just win the closed auction or you might be called to "improve your Best and Final Offer". The fact is, in a hot market with lots of keen buyers, or if other offers are represented by professionals such as buyers agents, you are highly unlikely to win it. We'll explain why. Why Sales Agents Prefer Buyers Advocates? Sales agents secretly prefer to work with buyers agents because of the high quality, well-researched offers submitted by experienced buyers agents. Experience is important here. New buyers agents are almost as clueless as novice buyers, and sales agents can identify them easily, as they would be easy prey, and they are usually a waste of time. Sales agents, however, know clients from experienced buyers agents are well qualified, market ready, and fully committed to the purchase, which makes the process smoother for both sides. The only thing stopping a sale is the vendors' "yes". And sales agents are usually more keen to work with experienced buyers agents to close the deal. Thus, more often than not, a well represented offer do allow buyers to avoid paying the top price . No Buyer's Remorse If you have done the right due diligence, your Best and Final Offer should be your very best for this property. You should not have any "buyer's remorse" and you would not have regretted not offering an extra $500 more. Do not be that buyer. Get one of our professional buyers agents to manage your offer, if you are not confident. Can You Counter a Best and Final Offer? Usually No. However, there might be ways around this, to achieve similar results. It all boils down to experience of the buyer or buyer's agent and how the sales agent runs this Best and Final Offer (BAFO) auction. Remember, in most (not all) situations, it is in the agent's and seller's best interest to allow interested buyers a second chance to review (and improve) their offers. So, when the agent gives you the opportunity, make good use of it. Remember, in the BAFO, the agent CANNOT disclose who and what the higher offer is. And, you do not have to make your decision on the spot. You can always request a few mins to privately discuss your offer with your partner, mortgage broker or lender, before confirming or revising your final offer. It also does not mean that you have to improve your offer, if what you have offered is what you believe is the best, and you would not regret if the property were sold for $500 more. Every agent, property, circumstances are different. An experienced buyer or buyer agent will help you explore other ways of getting the property you want. What Is the Real Estate Industry Secret to Winning the Best and Final Offer? The real secret to winning a best and final offer is the credibility of your offer. As you'll know by now, anyone can submit an offer for a property. It is the sales agent's job to vet the offers, and filter dodgy offers. Usually, your reputation in the industry and / or reputation with the agent is a major factor determining if your offer will be short-listed for considerations. The majority of buyers do not have a lot of track record buying properties, and thus, they lack the reputation and experience to manage the Best and Final Offer professionally. This inexperience is shown in the way your offer is put together, communicated, and presented to the agent. How Can You Improve the Credibility of Your Offer? One of the most effective ways to improve the credibility of your offer is by engaging a buyers advocate to assist with your purchase. Feedback from real estate sales agents suggests that having a professionally represented offer significantly enhances your chances of success. And from experience, our professionally prepared winning offer is often not the higher offer on the table. It is often between $10-30k below the highest offer. That is the value of professional representation. It might seem counterintuitive, but the facts speak for themselves. Buyer’s advocates, like us, don’t charge full fees for such services. With a small fee of $3k-$5k, you gain a credible, well-prepared offer backed by professional insight into the property’s value—potentially saving you much more in the long run. Take the guesswork out of the process, strengthen your offer, and improve your chances of securing the property of your dreams. Professional Help to Buy in Best and Final Offer Auction is Available If you're still uncertain with how the Best and Final Offer auction works, not confident with your preparations, or just want the confidence to buy the property, you might want to consider engaging our buyer's agent to: help you manage the whole process, deal with the agent/vendor and work out the best way forward with the offer. Our Melbourne based Buyer's Advocacy is here to help buyers navigate the Best and Final Offer Process and help prevent buyers from overpaying. Our Complete Buying Services and Purchase Only plan covers all purchasing scenarios, BAFO, negotiation, auction bidding service, etc. It is also popular with hands-on property buyers who are either unable or not confident at negotiating or bidding at property auctions. We help buyers prepare for purchase and buy their properties with confidence. And over 95% of our clients buy their properties in 2 months. Get in touch, find out if our services are right for you. Other References: How to determine market value of a property . How to win at property auctions in Melbourne . How can buyers advocates can help you beat the market . Get in touch with Melbourne Buyers Advocates . More home and investment property buying news and tips here . - updated July 2025 with latest strategy

Purchasing a property is a significant investment, and in the business of buying real estate in Melbourne and anywhere in Australia, buyers cannot escape from having to negotiate. Using the right negotiating strategy is an essential part of the buying process. Negotiation is intimidating to most buyers, especially if you are a first-time homebuyer. But with the right preparations and approach, negotiating for a property purchase can be a smooth and successful process. In this article, our buyers advocates and advisors will explore some negotiation winning tips on how to make an offer for a property, and walking away winning or at the very least, without a sore ego.

Are there any differences between Property Valuation and Market Appraisal? How do they differ? What are the things you need to know? Difference between Market Appraisal and Property Valuation The difference between a Market Appraisal vs Property Valuation is an important concept that all property buyers and home buyers must understand. While they may sound the same and probably look similar, there is a fundamental difference. What is a Property Appraisal? A Property Appraisal gives you an indication of price, from a Real Estate agent's perspective. It is how much the property can sell for in the Melbourne property market in the prevailing market conditions. What is a Property Valuation? A Property Valuation is a formal, legally recognised assessment of a property's market value, prepared by a licenced, qualified independent valuer. This valuation is used by a bank or lender to process your mortgage or wealth. The property valuation is also used by the legal profession to determine the value of the property for compensation and settlements such as divorce, separation, etc. Difference between Property Appraisal and Property Valuation The table below summarises the difference between a Property Appraisal and a Property Valuation: Property Valuation Property Appraisal Purpose Satisfy banks, courts, tax authorities, insurance Give an estimated selling price for buyers/sellers Who Provides It Certified practising valuer (CPV) bound by Australian Property Institute (API) rules Sales agent or buyers advocate Legal Standing Admissible in court; relied on by lenders and solicitors Not legally binding Cost $500–$800 for standard Melbourne residential property Often low-cost or free Typical Uses Mortgage lending, refinancing, deceased estate, family-law settlement, capital-gains tax, SMSF audits, insurance replacement For Sellers to set an asking price or vendor strategy. For Buyers to define buying, negotiation or bidding strategy. How do Real Estate Agents do a Property Appraisal? To determine a property value, the licenced buyer agents or real estate agents perform property appraisal by firstly inspecting the property and utilising their knowledge and understanding of the property, location, demand, supply, etc, in the specific property market. Because this is based on one agent's understanding of so many parameters, it is normal to see this value differ from agent to agent. If the appraisal is independent with no hidden agenda, the number should be relatively similar, and reflective of the property in the prevailing market condition. How do Property Valuers Value a Property? Property valuation is a lot more formal and is a legal procedure to determine the value of a property. It is carried out by a licenced valuer who is an independent professional and works on behalf of banks and other lenders. Property valuation takes a closer look at the property and its quality and features to arrive at a more accurate value. However, because most tend to work on behalf of the lenders, their property valuation tends to be more conservative to protect the interest of the lenders. It usually is lower than the price you could get in the prevailing market. Property valuations are not free and can cost you around $500-$800 whereas market appraisals can be obtained for free from any licensed Real Estate agent. Are There Free Market Appraisals? There are a few places where you can get "free" market appraisals, but they each come with their own catch. There's no free lunches, unfortunately. Real Estate Agents . Your real estate sales agent friends would be able to give you an idea of what the price it could sell for, if they are local to the property and are familiar with the property and location. But do understand of the values are often tainted by the sales agent's agenda. Online Appraisal . Some real estate related websites provide a free appraisal for the property. However, this is your worst option and least accurate appraisal. We had seen these number vary by between $300,000 - $500,000 for the same property. Use this only if you are desperate for a free appraisal, then add/subtract up to 30% to the results. Perform Your Own Price Assessment . With enough experience and knowledge of the property and local market condition, buyers can do their own appraisal. However, experience tells, us buyers always have a certain degree of biasness. Part 1: Free Market Appraisals from Real Estate Sales Agents How are Sales Agents Using Appraisals to their Advantage Property buyers are usually not aware of how the valuations/appraisals are done. Sales agents often prey on this to present numbers which benefit their sales agenda. The number can be higher or lower than what it is, depending on whether they are trying to get your listing or trying to sell the property. Our buyers advocates often see differences of between $200,000 to $300,000. In one case, the difference is as high as half a million dollars. It is often impossible for inexperienced buyers to decide which appraisal or valuation is more accurate. What are There Differences in Property Appraisal Values? As explained above, if the differences in appraised values are small, it probably suggests the appraisals are accurate. However, when the differences are huge, it can be confusing and misleading. When there is huge difference, it is important to find out why, and which value is more realistic. There might be something unique in the house. A gold bar hidden somewhere? Or the property might have a hidden termite infestation or structural issue. These are probable reasons why there is this big difference in property appraisal value. Why are Sales Agents Appraisal Controversial? What is the Hidden Agenda? While most sales real estate agents attempt to make an honest attempt to put a value to a house, many are driven by the need to get a listing. The number of listings is one of the sales agents' Key Performance Indicators (KPIs) in the market. Their performance in the agency is determined by the number new properties they can list for sale. So, in order for real estate sales agents to increase the number of listing they have, they need to convince property owners to let them list and sell their properties. And what else could be a better incentive than to convince sellers their properties are worth a premium ($100k?) above everyone else, and to promise property owners that only they can sell their property for top dollars. Thus market appraisal (include price guides and statement of informations) from sales agents can seldom be trusted. Understanding the real value involves guesswork and adjustments based upon the experience (and agenda) of the sales agent. Part 2: Free online Property Appraisals Where Can we Get Free Property Valuations/Appraisals? So, if buyers cannot fully trust the appraisals from the agents, and they are unable to do the appraisal independently, can they trust the free property valuation websites? Yes, there are some websites who claimed to be powered by AI to provide free property appraisals. However, as explained above, time and experience, plus a visit to the property to understand the condition, etc, is needed to individually assess and appraise a property. The AI would probably be better at learning. However, has the AI physically visited the property to understand the property condition? No. Thus, websites which provide free property valuations are nothing more than a algorithm in a computer program calculating the average of properties sold in the area. Numbers which our buyers advocates have seen, can often differ by a few hundred thousand dollars. How Accurate are Free Online Property Estimates? Free online estimates might give you a rough idea of the value of a property, but our experience tells us the values can differ by hundreds of thousands for the same property. So, professional real estate Buyer's Advocates like us have never trusted those numbers. We always take those numbers with a pinch of salt. Those free valuations are more often than not, generated by simply computing an average of all properties in the suburb, and do not consider if the property has any unique selling points or of there are any problems with the property Part 3: Buyers can do you Own Assessment Can Buyers Do Their Own Property Appraisal? Buyers definitely can do their own appraisal. You will need a good understanding of the market conditions, and skill set and discipline to keep the appraisal neutral. The more experienced and neutral you are, the more accurate your appraisal will be. In addition to knowing the market conditions in the area, you will also need to: know the profile of buyers in the area understand what buyers in the area are looking for know the potential of the property It is critical to ensure you are neutral. Make sure your assessment is impartial and you have not added a few thousand dollars to your estimate, because you liked the property (personal biases). The most critical thing you need to know is, your personal appraisal is only good for your own consumption. If you're not a licenced real estate agent, your appraisal is worthless. Where can You Get an Independent Property Appraisal? If you're are receiving conflicting property appraisals values or valuations, worry not. There are other ways of knowing the market value of the house. Property Appraisals and Valuations can also be done by: Property valuations provided by an independent valuer Estimates provided by experienced buyers advocates or buyers agents Why Agents Charge for Accurate Appraisals? As you would appreciate above, time and experience is essential to individually assess and appraise a property. It can take the real estate agent doing a detailed property appraisal at least an hour or two (or faster of the agent already know the area well) before they have enough information to determine a fairly accurate appraisal. Thus, fairly accurate reports are usually not free. Most property consultants and advisors charge a small fee of about $200 for an accurate property appraisal. At Concierge Buyers Advocates, we are confident of the accuracy of our Property Appraisal Report. The report is completed by our Melbourne based buyers advocates, and we guarantee the accuracy with our Money Back Guarantee . Are There Any Low-Cost High Accuracy Property Appraisal? Yes there are low cost but highly accurate property appraisals. Our low cost property appraisal service gives you that peace of mind. For a low fee of $138 , we guarantee the accuracy of our reports . It is the first in the industry. No one else is confident enough to guarantee them like we do. Accuracy Guaranteed Property Appraisal This independent give you a good estimate of the fair value of the property, given you the confidence of knowing what the property is worth and buy without overpaying. If the sold price of the property is more than 10% different from our appraisal, we will refund the cost of the report. Yes, and if our appraisal is inaccurate, you get the report along with the property's sales history, proprietary and confidential information on the property and suburb for free . The insider information on the suburb is yours to keep and will help with your other purchase. Many buyers have benefited from our low fee, accuracy-guaranteed  independent appraisal  reports. Buyers like yourself can now have the confidence of know what to pay, without breaking the bank. If you’re buying your property or selling your property, consider speaking to one of our senior buyers advocates. Our agency principal, Rayson , has over 20 years of property buying, selling, and investment experience and would be happy to give you a hand.

Getting your mortgage through a mortgage broker is probably one of the best things you can do, when you embark on your home and investment property buying journey. However, while you are getting your mortgage serviceability assessed, some mortgage broker might provide you with some Property Buying Advice. Whilst most are generic property buying information, some more "enterprising" mortgage brokers may go as far as telling you what to buy and what not to buy. We've seen this too many times. And we've seen too many property buyers being badly affected by such unqualified advice from mortgage brokers and mortgage clerks. So, what happened here? What do you need to know? Are mortgage brokers supposed to provide property advice? How qualified are mortgage brokers to provide property advice? Should they be licenced in real estate before they can provide property advice as well? What are the hidden agenda that you need to know with property advice from mortgage brokers? This article will explain what you need to know with property advice from mortgage brokers, expose what is not said to you, and how to protect yourself from the hidden agendas. What is the role of Mortgage Brokers? Mortgage brokers are lending specialists who help property buyers find the most suitable loan for their properties. They do this by helping and banks and lenders assess the property buyer's income, expenses, assets and liabilities, plus other criteria, to determine the most appropriate lender for the buyers. Most mortgage brokers are doing the right thing, and there are also no doubts that many are themselves property owners and property investors. What's the Issue with Property Advice from Mortgage Brokers? Unfortunately, however successful they claim to be, most mortgage brokers do not have the vast real estate experience and up to date property market knowledge needed to provide you with qualified property buying advice. It’s essential to understand that mortgage brokers are not licensed to provide real estate advice . They do not have the comprehensive knowledge or real estate licensing required to give legally sound property recommendations. Furthermore, their insurance coverage typically only covers their financial advice—not property buying advice. If a mortgage broker’s guidance leads to poor property choices, clients often have limited legal recourse. What's Required to Give Real Estate Advice in Australia? In Australia, the law specifically mandates that anyone providing property advice must be appropriately licenced in real estate . So, in order for anyone, including mortgage brokers, to provide any property advice, they have to hold a legally recognised and valid real estate licence in your state in Australia. And this licensing is managed by the state real estate licensing authorities, such as the Consumer Affairs in Victoria and Department of Fair Trading in New South Wales. This purpose of licensing is to protect consumers, ensuring consumer receives educated, appropriate and well informed advice . Can Mortgage Brokers Provide Property Advice? Here's the million dollar question. Can a mortgage broker or mortgage clerk provide property advice? Legally, unless the mortgage brokers / mortgage clerks hold a valid real estate licence in your state, it is illegal for mortgage brokers to provide any property advice , and for them to tell you what to buy, where to buy. Some brokers do give high level tips on how to buy your properties. And that is ok. But, it will be illegal for them to give you anything more than that. They are not licenced and skilled to provide advice on any specific property / location or recommend properties to you at all. What could go wrong with a mortgage broker advice? While most of the real estate advice from mortgage brokers are no more than simple, relatively harmless guidance, and checklists, there had been too many instances where information provided by mortgage brokers are incorrect , incomplete , misleading or had resulted in the property buyer's financial loss. The 2 most common problems we have seen with mortgage broker advice are: Valuation of the property Location and types of property To explain why information provided by mortgage can be misleading, or incomplete, let us start with giving you an understanding of the skills, knowledge and information needed by a real estate buyers agents before they can provide property valuation / appraisal and location advice relevant to you. How do Real Estate Professionals Appraise the Property Valuation? Determining a property’s valuation goes well beyond entering an address into a software program. To give an accurate property valuation, real estate professionals need an in-depth knowledge of the local market, buyer preferences, and the property's unique characteristics. Here’s a simple run through of what’s involved in a reliable property valuation: Key Aspects in Property Valuation Market Knowledge: Understanding current market trends, recent comparable sales, and buyer demand in the specific area is essential. Experienced professionals have up-to-date knowledge of these trends, which free online tools can’t always capture accurately. Property Characteristics: Real estate agents or buyer’s advocates need to evaluate factors like the property’s age, condition, size, layout, and unique features. This requires an on-site inspection to truly understand what sets the property apart or what detracts from its value. Buyer Demographics: Different buyers look for different things, so knowing who is most likely to buy the property (e.g., families, investors, or young professionals) is crucial. This insight helps agents and advocates determine how the property’s features align with buyer demand, influencing its value. Why an Accurate Appraisal Can’t Be Done Remotely Unlike mortgage brokers who focus on lending, buyer’s advocates and real estate agents spend time inspecting properties on-site. These inspections lets them have a good assessment for the property to provide an accurate valuation based on both tangible and intangible property features. Without physically evaluating the property, it’s difficult to provide a thorough, accurate appraisal. Real estate agents and buyer’s advocates also possess the specialised knowledge and on-the-ground experience required to deliver accurate property valuations, something which mortgage brokers nor mortgage clerks have. Our buyers advocates and buyers agents are out there inspecting properties regularly—not selling mortgage packages. This is why only licensed real estate professionals is the most qualified to assessing and appraising a property’s true value. How do Buyers Advocates Find the Right Property for the Buyer? At Concierge Buyers Advocates, our onboarding process is designed to deeply understand what buyers really need in a property. Here’s how we ensure that we’re aligned with your vision: In-Depth Onboarding Consultation Our onboarding workshop, which can last from 45 to 90 minutes, is a comprehensive, unscripted brainstorming discussion. This process helps us: Understand what you think you want Clarify what you may not have considered yet Explore additional options based on your needs and lifestyle goals Independently  understand and qualify what you want so we can identify the most suitable property for you. Comprehensive Property Search Across All Sources Once we’ve uncovered the full scope of your preferences, we begin an extensive search using our unique advantage: full independence. We’re not affiliated with any real estate agencies, and that means we can source properties from any agency, off-market channels, and other proprietary sources to find the perfect fit for you. Data-Driven Property Buying Our team invest tens of thousands annually subscribing to quality and reliable data sources from industry data providers, and maintaining our in-house data and statistics. These give us detailed fact-based insights and trends that help us identify locations and properties with high potential for our clients. Through our buying services, you get access to data and knowledge, worth over tens of thousands of dollars, which helps us identify the best location to meet your buying brief. We dig into this wealth of information to find the best location and suburbs for you, whether you are looking for high growth locations or good yield properties. It's not voodoo, hear-say, monkey-see-monkey-do investments. It is investment recommendations backed by data science. No sales agent, unlicensed "buyers agent," or mortgage broker will invest two hours or more to thoroughly understand your preferences and needs before making purchase recommendations. Unless a mortgage broker holds a real estate buyer’s agent license, they are not equipped to spend the tens of thousands of dollars annually for the subscription-based resources we use. Furthermore, these professionals lack the real estate experience, in-depth local knowledge, and specialised insights essential for offering truly valuable property advice. What had Gone Wrong with Mortgage Brokers Providing Property Advice? Now, the above background information should give you an idea of the level of details, information and experience our buyers advocates have, in order to provide you with a qualified and relevant property advice. Does a mortgage broker or mortgage clerk have that level of experience and access to research data and sources? Does the mortgage broker or clerk have the intimate information about that specific property and the property market in the area? Has the mortgage broker even inspected the property? Don't get us wrong. Most mortgage brokers and mortgage clerks and administrators are doing the right thing. They stick to providing mortgage advice and pointing borrowers to simple, generic property buying guidelines. However, there are enough instances of mortgage brokers providing wrong / misleading guidance to buyers, causing buyers to suffer significant damages. And these instances had prompted calls from a real estate professional body for mortgage brokers to stop providing property advice. The industry has recognised that unqualified advice from mortgage brokers are putting the buyers and their [mortgage brokers] own mortgage business at risk . Before we look at two real-life examples of how buyers are harmed by such advice, let's read excerpt from Your Investment Property Magazine . The call for Mortgage Brokers to step back from property advice. The head of a Sydney based buyer’s agency and a representative of the Real Estate Buyers Agency Association of Australia (REBAA) has backed calls from the head a peak mortgage broking body reminding brokers not to provide unqualified advice. Peter White, chief executive of the Finance Brokers Association of Australia (FBAA), reminded brokers not to provide advice in areas they aren’t qualified to do so, particularly investing in property. “If you are only a qualified finance broker, act as a broker and do your best to meet your client’s needs,” White said in 2016. “If you also want to assist a client in other areas like property purchasing, get the necessary qualifications and training otherwise you may be at risk of a life changing personal pay out,” he said. White and the FBAA cited a recent case in which a broker was found to have breached his duty of care by the Credit Ombudsman Service and forced to pay more than $115,000. The Ombudsman claimed the broker had given incorrect and unqualified advice. The Illegal Hidden Agenda It is also a well known industry fact that second rate and small time property developers and property project marketeers incentivise mortgage brokers to sell their products. Mortgage brokers and mortgage clerks are often paid commissions by property developers to sell the developers' properties. Now, remember, anyone providing and selling real estate has to be appropriately licenced? Are these brokers licensed real estate agents? If not, they are putting you at risk, and they risk being called upon by the real estate industry watchdog. Licensing of real estate agents protects property buyers from dodgy and fraudulent real estate purchases, and, also prevents unqualified persons from providing unqualified property advice, which are putting consumers at risks. Now, who is protecting you, if you suffered any loss by following the advice of your mortgage broker? Examples of Buyers Suffering Significant Damages Resulting From Mortgage Brokers Advice Here are some real-life examples how some of our clients had been adversely affected by unqualified advice from the mortgage brokers. These are just a sample of examples that we are aware off. There are many other untold examples out there. Case 1. Mortgage Broker provided misleading valuation, resulting in Home Buyer missing out on their Dream Home, and suffering about $10,000 financial loss. Our first home buyer client was looking for a high-specs, high quality home in the eastern suburbs, around Glen Waverley. We found one which " ticked every box " (in the client's own words). They paid for a building and pest inspection, got the Contract of Sales and Section 32 reviewed by the solicitors. Our buyer's advocate assessed the property to be worth around $2.4-2.5 million, and it could sell for around the $2.5 million dollar mark, which is well within the client's budget. We agreed to proceed with preparing for the auction bid at around $2.5 million. The evening before the auction, the mortgage clerk sent our client a "valuation" of $2.1 million, which is significantly lower that our appraised value of $2.4-2.5million. Now, because this opinion came from a person representing the lender, the client wrongly trusted the valuation and would not agree to bidding more than $2.15million. The property was eventually auctioned and sold for $2.52 million. Our property appraisal was spot on, and $2.52 million was a price which our client would be more than happy to pay for. Because of this unqualified advice from the mortgage clerk , our client missed out on their dream home. Their intense preparation and their hopes were dashed by this uncalled-for disruption from the mortgage clerk. Our buyers were emotionally distraught, knowing they could have bought their dream home, if they had not listened to the poor and unqualified advice from the mortgage clerk. It ticked all boxes, and it was their dream home. Their kids loved the house so much they had even chosen their rooms during the property inspection. They were full of hope and they had been discussing and planning how they could use the house. They had the capacity to pay for it, and they wanted that so much. But because of the unqualified advice from the mortgage broker, they missed out. They realised that they had misplaced their trusts, and their heart sank when they knew what they had done. They could have walked away with the keys to their dream home, if they had not trusted their mortgage broker's poor property advice. What went wrong with this mortgage broker's advice? The last minute "valuation" from the mortgage administrator was where things started going wrong for our buyer. Firstly, it is highly unusual for a reputable lender to send the buyers a "valuation" for any property before they receive the Executed (signed) Contract of Sale for the property. What the mortgage clerk provided was not a formal valuation. The mortgage clerk is NOT licenced and unqualified to provide that . Only fully licenced real estate agents and licenced property valuers can provide property appraisals or valuation , and lenders would only organise these formal valuations AFTER they receive the executed Contract of Sale, not before the buyers buy it. Whatever this mortgage clerk / administrator had given, was just their personal opinion of what the property is worth. And it is no better than a 10 year old kid punching an address into a computer software that gives you the average price of the properties sold, without considering the quality of each individual property, and buyer profiles, etc. Our client was looking for a high-specification, high quality home, not an average suburban home... The client's concern of overpaying is real and valid. The fear of overpaying also highlights the need for buyers to get a good assessment of the property value before they make an offer, or they are more likely than not, to overpay, putting their finances at risk. Since this " personal opinion" came from a person representing the buyer's lender, it gave our client the impression that it was what the bank will lend. From our extensive experience working with mortgage brokers and the mortgage application process, we know this mortgage clerk is likely a new staff and had no idea what he was doing. He definitely wasn't aware that because of this action, he was about to lose his job. Because this mortgage clerk sent our client his opinion in the last minute and this wasn't brought to our attention until minutes before the auction, there wasn't enough time for us to clarify with the lender, and to correct the client's misunderstanding. This very last minute disruption, resulted in our clients wrongly limiting their offer and they lost their dream home, when they could have won it. Real Estate is clearly not this mortgage clerk expertise, and it backfired and got him fired when our client lodged a formal complaint. Emotional Distress and Financial Loss from this Mortgage Broker's unqualified advice As a result of this unqualified advice, our client missed out on their dream home, and that resulted in our client suffering emotional damage and distress . This is on top of the loss time , and monetary losses from the wasted building and pest inspections and legal contract review, plus 2 additional months of rents which the clients would now have to pay. It caused them about $10,000 worth of monetary loss. This same mortgage clerk subsequently provided another misleading information to our client on a second property. But we managed to discover this second instance early, independently fact-checked the mortgage clerk's claim, challenged the mortgage clerk's opinion and corrected our client's misunderstanding. Any other uneducated buyers or buyers without any professional support, would have once again believed the misinformation from this mortgage clerk. If we had not picked this up, our clients would once again be misled by this novice clerk and missed the property they wanted. It would have caused our clients even more financial damage this time, as it came much later in the buying process. This is Why Savvy Property Buyers Buy with a Buyer's Advocates on Their Side That's what property buyers pay our professional buyers advocacy services for. To protect their interests throughout the whole property buying process. We use our experience and independent professional network of agents and industry affiliates to support our clients, ensuring our clients receive the correct and most appropriate property buying advice. Case 2. Investor Bought Sub Standard Properties from Mortgage Broker Friend This property investor contacted our office one day, seeking a review of their investment properties. They were seeking to understand how they can improve the performance of their property portfolio. In one look, our property advocates casually asked how had they bought the properties. "Recommended by their mortgage broker (who happened to be their friend)" was the answer. This was the first red flag . Of the 5 properties they owned, only one is an investor grade property which could have been cash-flow positive, if it wasn't their own home. The other 4 were apartments which were designed for unsuspecting investors. Such properties were all over Melbourne. Melbourne CBD, Box Hill, Sandringham, etc. Now, for the uninitiated, there is a MAJOR difference between an investor-grade property and a property meant for investment . An Investor Grade Property is what our pro-buyers buyer's advocates would recommend, while a Property Meant for Investment is what developers-backed real estate salespersons would sell to the uneducated, unsuspecting foreign investors. Foreign investors almost never ever visit the property they buy, so they would not know how badly some of these properties were built. I will cover the difference in more detail in a later article. Back to this client, while the 4 apartments seems to be bringing them income, they eventually realised that the rental income was insufficient to cover their expenses and outgoings. The total cost of their mortgage, repairs, expensive body corporate and council rates, etc are more than the rent they collected. This situation is called negative gearing . This mortgage broker "friend" of theirs was receiving tens of thousands in commissions for each property he sold to my client. While negative gearing may be helpful to the rich, who are investing in these properties with their spare cash, it is dangerous in the long run for the majority of moms-and-dads property investors. When property prices crash, or when interest rates rise, they would have usually end up with trouble servicing the mortgage, and when they can no longer afford to hold their properties, they could end up with their properties being repossessed by the lenders. This client was also surprised to realise that despite years of owning these properties, and making payments towards the properties, the value of their properties had not grown at all. In fast they still owe the lenders more than what the properties were worth. They are in a situation called negative equity . Where they owe more than what the assets are worth. It is dangerous. They could and did find themselves in financial distress for years. With this client, if they had bought the right properties, instead of the dud investment properties recommended by the mortgage broker, they could very well be retired with a few properties fully paid off by now. #rantover There are many more other examples out there. Time and time again, we hear stories of property owners ending up in trouble or with the wrong properties, due to unqualified advice from unqualified people. And it is about time property buyers get educated on who they should trust to receive these advice. What Do You Need to Know About Property Advice from Mortgage Brokers? Mortgage brokers process a lot of property mortgages, developers know this. And they know this makes them a good channel to push their new properties to naive and unsuspecting home buyers and property investors. The developers are incentivising the mortgage brokers to sell. The mortgage brokers are paid commissions, or "introduction fees", for each property they sell to their unsuspecting clients. Can You Trust a Mortgage Broker's Advice? Yes. You should trust their mortgage advice. Their skills and experience are in assessing your serviceability, how much you can borrow from the lenders and finding out which lenders will suit your needs. However, if it is property advice, take their advice with a pinch of salt. Most of their advice are just generic advice, and should not be taken as specific to your needs. It takes a lot of experience, industry and market knowledge to determine a property's value, where and what you should buy. Also, remember, mortgage brokers' property recommendations can be biased. They are usually paid commissions by property developers and project marketeers to sell their products to you. So, unless you are 101% confident your mortgage broker holds a valid real estate licence, is a reliable practising real estate agent, and is independent and neutral in their recommendations, you are putting yourself at risk, when you trust their property advice. What Should Home and Investment Property Buyers Do? As property buyers, you should always do your own research and independent due diligence. While your mates' advice and mortgage brokers' inputs in some instances are good, they should never be relied upon as the gospel truths. They are all unqualified advice . They are either ill-informed, ignorant, or they could even have a hidden agenda. Can You Trust Sales Agents Providing Buying Advice and Service for Free? The law is simple and clear. Unless you pay for the real estate agents to work for you as buyers agents, the fact that they are providing you "free" services makes them a sales agent, and they are working against you. These sales agents are paid by the seller, either directly or via commission sharing with another agent or sales person. And real estate agents are legally required to protect the best interest of whoever pays them . For more information on this, this article will explain why it is important to find out how your real estate agent is paid . Where can Property Buyers Go for Independent Property Buying Help? Look for independent buyers agents or buyers advocates who charges a fee. The Australian law mandates that the real estate agent MUST look after the best interest of the person who pays for their services. As independent Melbourne buyers agents based in Glen Waverley, buyers engage our paid services to help them buy their properties confidently. We protect the interests of property buyers throughout Melbourne, Victoria and Australia. Our 3-step process helps property buyers outsmart the market, and make confident buying decisions fast. Get in touch to explore how we can help protect your property buying interests.

外国人是否可以在澳大利亚买房 答案是肯定的！在澳大利亚，外国人可以购买房产，但需遵循一些限制和规定。让我们来看看需要注意的几个关键点。 飞居民可以在澳大利亚买房吗？ 简而言之，外国人可以在澳大利亚购买房产，但需遵守特定规定。外国人只能购买新建或计划中的物业，或在某些情况下购买未售出的现房。 澳大利亚的房产类型 外国买家通常限制购买以下类型的物业： 新建住宅 ：外国买家可以购买公寓、别墅等新建物业。 正在建设的物业 ：可以购买正在建设中的物业。 特殊情况下的现房 ：在某些情况下，可以购买未售出的现房。 外国投资审查委员会（FIRB） 外国买家在购买澳大利亚房产之前，必须获得外国投资审查委员会（FIRB）的批准。FIRB会评估购买是否符合澳大利亚的利益。 申请FIRB的费用 申请费根据物业的价格而有所不同： 100万澳元以下的物业，申请费为5000澳元。 100万至200万澳元之间的物业，申请费为10600澳元。 税务需知 外国人在澳大利亚购买房产需要了解相关税务规定。租金收入需要申报并缴纳澳大利亚所得税，出售房产的盈利也需要缴纳资本利得税。 购买程序 确定物业类型：新建物业或未售出的现房。 申请FIRB批准。 了解税务影响和其他法律义务。 寻找可靠的房地产中介或买家代理协助购买过程。 寻找买家代理的帮助 专业买家代理可以为外国买家提供全面的支持和服务，确保购买过程顺利无忧。例如，Concierge Buyers Advocates在墨尔本为客户提供专业的买房服务，帮助他们找到最适合的投资物业。 结论 外国人可以在澳大利亚购买房产，但需要遵守特定规定，并获得相关批准。了解并遵守这些规定，将有助于确保您的购房过程顺利无忧。如果您对在墨尔本购买房产感兴趣，请联系我们以获取更多信息和专业建议。 For more detailed information, you can visit the original blog post on the Concierge Buyers Advocates website: Can Foreigners Buy Property in Melbourne, Australia?

Property Auction Winning Tips To win at auctions, preparations, strategic planning and experience is a must. Our Melbourne Buyers Advocates show you their auction winning strategy and exposes some auction myths. In a seller's market, it is not uncommon to see properties being listed for "Auction". With almost every good properties listed for "Auction", you will have no choice but to be prepared to put your winning bid at these property auctions. What do you need to know at auctions? How do you bid? What do you need to prepare? What strategies do you need at the auctions? How do you win at the property auction? If you've come to this blog to learn how to beat the auctioneer, turn back now. The auctioneer is NOT your competitor. The other bidders are. The role of the auctioneer is to facilitate the auction. Or is it? Based in Melbourne, our buyers advocates attend and bid at over a hundred auctions a year for our property buying clients. On a busy weekend, we bid at between 3 to 5 auctions a day. We've seen different strategies being used, all sorts of games and distractions, all sorts of tactics used by agents and auctioneers to conjure an emotionally charged atmosphere. Techniques and tactics change and we've seen some rather creative strategies used in 2023. We've updated this guide for 2024, helping all buyers beat the competition and grab the property you want. What is An Auction? Back to the basics first. What is an auction? Quite simply, an auction is an open bidding competition between interested buyers. All interested buyers for the property will come together at a set place and time, and everyone start shouting out the price they are willing to pay for the property. This bidding session is facilitated by a licenced Auctioneer, whose job is to make sure the bidding process is held in an organised manner. What Do You Need to Know About Auctions? Auctions are usually an emotionally charged, tension filled 20-30 mins process. At times, the bidding activities may be slow, in small increments, and long delays between bids, while at times, the bidding can be fast, in large increments of tens of thousand dollars, and with split seconds counterbiddings. This is facilitated by our dear Auctioneer, and a few key players in the auction game. It is important to know that, in most states in Australia, properties bought at auctions are unconditional. This is especially true in Melbourne and Victoria. There are no cooling off periods, no ifs, no buts. There is no walking away, if you are the successful bidder. And, everyone should also know it is illegal to disrupt an auction. What you said you will pay at the auction, is legally binding. There is no backing out . How to Win Property Auctions? To win at auction, particularly in the competitive Melbourne property markets, requires a combination of preparation, strategic bidding, and emotional control. Key strategies include setting a firm budget, understanding the property's value, and having a bidding approach that maximises your chances of winning without overpaying. In this article, we'll now teach you how to win the property you want, at the auction. Good preparations is the key to winning the key to your dream house at the auction. Here's how you do it: How Do You Prepare for Auctions? Given the high stakes involved at the auction, how do you prepare for the auction? How do you make the right auction preparations, to prevent yourself from some serious, unintended consequences. What preparations do you need? While some suggests that you need a lot more preparations, there are only 3 basic things you need to prepare: 1. Do your due diligence. Doing your due diligence is critical to preventing yourself from buying a property that doesn't suit you. Understanding what you want from the property, why you want the property and your plans for the property. Knowing the real market situation will help you understand the market condition for that property type, in that particular street and in that particular pocket. If you are a home buyer intending to live in the property, ask yourself: Do you like the location? Does it have the right school? Does it have the right transportation - train, tram, highway, bus, etc? Does it have the right environment? Does it have the right amenities? Do you like the vibes you get when you are in the area? If you are an investor and intend to put the property on the rental market, ask yourself: What rent can the property fetch on the rental market? Is that good enough for you? What are the vacancy rates? How long will it take for you to find a tenant? Is the property in the right location for the types of tenants you want to attract? Does the property meet the minimum rental standards in its current condition? What else do you need to do, to bring the property up to minimum standards? If you are a developer and intend to develop the property, ask yourself: What types of properties are buyers looking for, in that location, on that street? What are the development potentials for the site and location? Does it have the right zoning, overlays, council plans, features? How will the local council look at your development proposal? If you are loaded and just want that property, ask: What price will knock out all other bidders? Will the agent accept an 'irresistible offer' before the auction? 2. Know the real price of that property. Most buyers wrongly believed the price guide in the Statement Of Information (SOI) provided by the sales agent. While the SOI aims to give you an indication of the price for the property, it usually does not mean the auction will end within the price range indicated in the guide. You should always do your own homework. Find out what other buyers and bidders are willing to pay for the property. Find out what similar properties in the area are sold for. If your research is very different from the price guide in the SOI, always feel free to ask why the agent thinks it should be so different. There could be a gold plated toilet in the house. Or a few embedded 1kg gold bars in the bedroom. Or a subterranean termite infestation. Or a history of flood and/or water damage. However, more often than not, you are likely going to get a standard reply "that's based on sales data. We cannot predict how much buyers will be prepared to pay at the auction"... A good independent buyer's advocate who knows the area, location, street, buyer demand, supply situation, buyer demographics, property characteristics, will be able to confidently give you an idea of the auction price range. At Concierge Buyers Advocates, we overlay our understanding of the area, with our data analytics, to derive a price guide for all properties we are bidding for. With the exception of a few outliers, we have been able to accurately estimate the selling price of the property. If you need help, our guide to determining the value of a property will give you some ideas. 3. Know your budget. With the due diligence done in steps 1 and 2 above, step 3 is the next critical homework you need to do. Steps 1 and 2 helps you understand your limits. Step 3 helps you set your budget. Budget is critical. Always remember, buying at auction is unconditional. You CANNOT back out, if you win the auction. Make sure you: Know how much you can afford to pay. Know your serviceability. Have sufficient funds for the 10% deposit. Have the appropriate way to pay the required deposit on the day of auction. Be prepared. Always assume you will win the auction. Our auction bidding service lets you know what others are likely to pay for, and what price range is considered appropriate for the property. With these information, determine what the property is worth to you. Set yourself 2 limits. Limit 1 . The price you are willing to pay for the property. Limit 2 . The absolute maximum price you are willing to pay for the property. A good test to know if you've set the right Limit2 is this: ask yourself "if the property is sold for $100 more to someone else, will you regret walking away". If these two numbers are way less than what other buyers are willing to likely to pay at the auction, maybe you should not even turn up at the auction. Or you can still bid, and you might be the lucky bidder with no other competitors, and walk away with the property for a good price. In a sellers' market, this scenario is highly unlikely to happen though. We will tell you why. A word of Advice though..: Intentionally under-bidding, hoping to grab a bargain is just going to waste your own time, the agents' time and everyone else' time. You'll be reducing your own credibility and creating a bad impression amongst the agents and buyers in the area. Another reason why this won't work is this: All properties at auctions have a reserve price . This reserve price is set at what the vendor and agent think is the fair value for the property. So, even in the unlikely scenario where you're the only bidder, you will still be expected to pay fair value anyway. 4. Stick to your budget. With the above preparations done, you are now all set for the auction. On the day of auction, be sure to arrive early. The listing agent would usually have a final open for inspection just before the auction. Turn up, have one final inspection of the property. Introduce yourself to the agent and let them know you will be bidding. Review your budget limits. You have one last chance to review and revise, if you need to. You should not have the need to adjust the numbers if you have done the due diligence in steps 1 to 3 diligently. Experience tells us, bidders who attempt to bid on their own WILL almost certainly change the budget at this very last minute. It is ok, if you change because you have to. But It is NOT ok if you change because you want to. If you want to change the limit at this very last minute, you will almost certainly walk away from the auction with regrets: If you win the auction, you will be wondering if you have overpaid. If you lost the auction, you will be blaming yourself for not spending that extra $100. How to bid during Auctions Many have also ask what our preferred auction strategies or bidding styles are. Some common theories advocated by some buyers include: 1. Be confident Confidence is to prepare you for the pressure, and emotions created in the auction atmosphere. There is no shortcut to this. Practice, practice, practice. Practice and be comfortable bidding with a clear, loud voice. If you have a naturally soft voice, or you are not confident in public speaking, you can get an assisting sales agent to help you. This can be both good and bad, as the assisting agent will definitely use this opportunity to stir your emotions. Some commonly used techniques include: "Another $1000 will knock the other bidders off", "Put in a $5000 knock-off bid. This should scare the others." "I know them. It's at their limit. Another $3000 will stop them." The auction bidding service at our Buyers Advocacy agency helps our clients bid confidently. We make our role known to the auctioneer and any assisting agents, and we would request assisting agents to stay away. We believe our clients should be shielded from the pressure and emotions of the auction. 2. Power Dressing Some believed power dressing helps portray a sense of confidence. Arrive in your Lamborghini, gold sunnies, LV trench coat, Gucci briefcase. But these are just hype, to be polite. Having attended and bidded at hundreds of auctions, unless it is your dress code or you are performing your duties as an agent, power dressing as a private buyer will only usually help the rookie bidder feel confident . Ultimately, the amateur's body language will give himself / herself away. We've seen many winning bidders in shorts and sandals, by the way. So, attire plays no part in helping you win the auction . If anything at all, it helps other bidders identify who the rookie is... 3. Body Language. Poker Face? Body language is by far more important than anything else. But relying solely on body language can and will mislead you too. Heard of "Poker Face"? A Poker Face can be trained. So can the "Nervous Face". We seen "Poker Faces", or the "Aggressor Faces" lost at auctions. And we will tell you why at the end of this guide. Our buyers agents are trained to study the bidders and auctioneer and we adapt our bids, strategy and body language to suit the situation. 4. Using Big Bid Increments Some say big bid increments will scare the competition and let you create the sense of deep pockets. It is partially true. But this only work against amateur competitors. Only the amateur bidders will think twice about beating your bid. If you intend to use this strategy, use it with caution though. Used at the wrong time, this bidding strategy will backfire badly. We've seen someone put in winning mega bid increment, knocking out all other bidders. Secretly, we believe he overpaid badly for the property. Professional bidders like us use huge bids to speed up the auction and lock out lowballers. 5. Using Small Bid Increments Small bid increments is another tactic used by most rookie bidders because they fear overpaying and other professional bidders to extend the auction. Used correctly, it can expose the stealth bidders, and also gives an impression of a bottomless budget, as the bidder seems to be able to dig out an extra $100 from thin air. It can be used to scare the amateur bidders. As experienced bidders, we have ways to counter the small incrementers. Over the years, we have attended hundreds, if not thousands of auctions. Having seen and studied how bidders of all experience levels used the auction strategies, we are sad to say, there are no fool-proof or sure-win strategies. As professional auction bidders, we read people. We analyse and profile each bidder, study their bids and use and adopt our strategies or combination of strategies to counter them. What Happens When There are No Winners at An Auction? Now that the auctioneer has done their best to get the best out of the bidders at the auction, what happens if there are no successful bidders? Remember the reserve price? If the highest bid during the auction is still less than the reserve price, the auction is unsuccessful. The property is left unsold. This is called "passed in" at auctions. If you are still interested in the property, this article will tell you what you need to do . Auctions are Just Games. Here's why. At the end of the day, auctions are just games. Over 90% of the auctions end within our appraised price range of the property. That means, if buyers do not want to overspend, you should do your homework and prepare for auctions. It doesn't matter what strategies or styles you use, price, budget and the other competing bidders ARE still the determining factors. Buyers Should Do Their Homework and Prepare for the Auctions Every buyer must prepare for the auctions. Even if they are not prepared, they are actually prepared to overpay or lose the bid. You only have that one chance to try to buy the dream property, and your offer is unconditional. Having the property inspection and sale contract reviewed is the bare basic. We explain why a building inspection and contract review is critical in this article . Doing the right homework and due diligence with the right data; and having a good understanding of the market, the property and who the potential buyers are will help you either put in your winning bid or walk away satisfied, knowing you have done your best. After all, you probably do not want to beat an over-bidder, at an auction. Where Can You Find Help to Bid At Auctions? If you are going to attend an upcoming auction, but you do not have the confidence to bid or do not know what you need and how you should prepare for the auction, it might be worthwhile engaging a professional auction bidding service. Our professional Auction Bidding Service is popular with hands-on property buyers who are either unable to bid or not confident to bid at auctions. We provide auction biddings for up to 3 auctions, guides our clients throughout the auction preparation process, and shields our clients from the pressure and emotions during the auction process. Last but not least, good luck with the auction. Get in touch if you want to learn more. More home and investment property buying news and tips here .

A First Home Buyer tried saving $300 by not reviewing their sales contract, and ended up paying $50,000 to fix an easement issue. Sales contract review is a critical due diligence requirement before buying any properties in Melbourne and Australia. In this article, we will cover what a sales contract is, the critical information it contains, and why that matters. Why is a Contract of Sales Review Important? A sales contract is a legal contract between the seller and the buyer. This legally binding document is usually about 100 pages (or more, for new builds) long and lists the important information about the property for sale and other information about the ownership. These are critical information which buyers need to know, before they buy any properties. It is thus, important to understand the Contract of Sales, so you understand the property and your obligations as listed in the contract, before you buy the property. What is Included in a Real Estate Sales Contract in Australia? The basic information that must be included in the sales contract varies from state to state. The minimum information from some states are more complete than others. In Victoria, the Victorian Contract of Sales is one of the more detailed contracts, and includes a Vendors Declaration section. This Vendor's Declaration is also known as the Section 32 in Victoria, or S32 for short. A complete Victorian Contract of Sales includes the Sales Contract and the Section 32, and typically lists: Information of the property and ownership, including: who the legal title holders are the vendors' details details of all applicable mortgage the land title and information about the land local council rates property water rates body corporate (strata) details and fees, if applicable etc Agreements between the seller and the buyers, including: how the sale is being done responsibilities of both the buyer and sellers penalties if any of the responsibilities are not fulfilled or delayed special agreements between the seller and buyers, not specified in the main contract etc The sales contract is typically paid for by the seller and often contain onerous conditions  worded by the seller's solicitor to protect the seller. If you are buying a property in Victoria, you should read and understand the Victorian Contract of Sales. As with any other legal documents, it is your responsibility to understand the contract before you commit to it. If you, like most people, are confused by the legal jargon, you should get the contract reviewed by a solicitor, before you commit to the purchase. What is the Special Conditions Section of the Property Sales Contract? The Special Condition Section of the sales contract is: A lists of specific terms and conditions in the contract to deal with unique or exceptional circumstances of the property or situation of sale. Used to document any special agreements between the seller and the buyer. Used by both the seller and buyer to add, delete, or change any parts of the contract. Who can Review the Sales Contract? Anyone with a good command of English and legal property jargon can review. However, we would always recommend the review be done by a person familiar with the legal jargon and property law. So, that would usually mean a property lawyer / solicitor or a conveyancer. The legal knowledge and quality of the review varies between a solicitor and conveyancer. If you can afford it, experience tells us to always go for a solicitor. We will explain why later. What will the Contract Review Tell Buyers? A diligent solicitor acting on behalf of the buyer will highlight the key points in the contract which buyers must know, highlight clauses, terms and conditions, responsibilities which are unfair and which are too onerous (ie, pro-seller), and suggest how you can respond to them. This is where the difference between a review by a solicitor vs conveyancer are. Reviews done by solicitors: contains details of the owners, land title, property, etc more complete, and because of their knowledge in property law and contract identify "redflags", onerous / unfair clauses in more detail, and suggest alternatives to rephrase and protect you recommend additional special conditions to further protect your buying interests Reviews from conveyancers tends to be more generic, because of the lesser knowledge of property laws, and are usually limited to highlighting details of the property and ownership only. How Much Does a Contract Review Cost in Melbourne? In Victoria, solicitors typically charge between $300-$500  for a Victorian Contract of Sale review, depending on the complexity of the contract. Contract of Sales reviews by conveyancers are typically cheaper at between $150-$300 . Most solicitors and conveyancers, however, provides a couple of free contract reviews, when you engage their conveyancing services. The contract review fee is a small fee to pay, in the bigger scheme of things. You would not want to save the $500 review cost when you are committing yourself to a million dollar property. When Should You Get the Contract Reviewed if You Are Going For Auction? Now, because properties bought at auctions are unconditional, it is wise not to commit to a purchase without knowing what you are in for. To avoid any legal surprises, you should get the contract of sales reviewed BEFORE you attend the auction, as there are no cooling off period, and you cannot say "Oops! I made a mistake" and walk away without serious legal consequences. Can You Change the Real Estate Sales Contract? Yes, anyone can change the sales contract. You can change most parts of the contract, which you are uncomfortable with. Changing this, is as easy as striking out or changing the clauses which you are concerned with, or modifying clauses using the Special Conditions section of the contract. Anyone can modify the contract, however, because it is a legal contract, it is recommended that you get the changes worded appropriately by your solicitor to prevent ambiguity. What Happens When Property Settlement Falls Through? If a settlement stalls, falls through or agreed conditions are not fulfilled, the gap between a property solicitor and a conveyancer becomes crystal-clear. A solicitor can step in immediately, outline your legal options, negotiate extensions, or pursue damages—giving Melbourne buyers a roadmap through the crisis. A conveyancer, by contrast, has limited authority and will often recommend escalating the matter to a solicitor—adding time, stress, and extra fees. Conclusion As you can see now, the contract of sales is an important legal document that can determine if you should buy the property, your responsibilities, you ability to use the property in a way you wanted to, etc. It is thus, critical to have this reviewed by a respectable property solicitor. While some conveyancers might be cheaper and provide some limited form of contract review, it is usually wiser to engage a property lawyer. As professionals, we only rely on our network of trusted property solicitors to review the contract and perform the conveyancing. If you are attending an auction, and need help to determine the price of the property, and have due diligence completed, have a chat with us . Our buyers advocates can help prepare you for your upcoming auction and strategise how we can auction bidding strategies.

If you are in the market for your home or investment property, one of the market pricing indicators you might look at, is the Median Price of a suburb, city or state. Before you start assuming a drop or rise in median price in an indicator of market strength and market direction, you need to understand what a median price of a suburb means, how the median price is calculated and what its significance is. Does it really indicate the strength of the market, and the direction of the market movement? IE, is the prices of house in the area really rising or falling? Or is the mass media using the "median price" as catchy titles? Let's start with the basics. When discussing the housing market, one term that frequently comes up is the "median house price." This statistic is often used to gauge the state of the real estate market, with many assuming that a higher median price indicates a stronger market. However, while the median house price is an important number, it is not always the best indicator of market strength. In this article, we'll explain what the median house price represents, its significance, and why it usually does not fully capture the health of the housing market. What is the Median House Price? The median house price is the midpoint of prices of properties sold in a specific area, in a given period of time. IE, it is the price of properties that property buyers and property investors have bought . This is important, and we'll explain why. The median price is where half of the properties sold are priced above this point and half are priced below. Unlike the average house price, which can be skewed by extremely high or low values or outliers, the median price offers a slightly more balanced view of the typical home value within a market in most situations. It is however, not immuned to bias which we will discuss later. How is the Median House Price Determined? Let us now look at this simple example. The sales data of a fictitious south East Melbourne suburb called Wonderland. In this particular period, 5 houses were sold with prices: $400,000, $500,000, $600,000 , $1,000,000, $1,500,000. During this period, the median house price is said to be $600,000. $600,000 is the price in the middle number of the set of sold property prices. This is easy to understand. Now, just like any piece of statistical data, without understanding the definition, source of data and the underlying market conditions in the area, it CANNOT be interpreted in isolation . We cannot emphasise enough: Median House Price is just an indication of what buyers are buying . It CANNOT Be Interpreted In Isolation. Why is the Median House Price Used? Market Trends: The median house price helps identify trends over time. An increase in the median price over several months or years can suggest buyers are buying more expensive properties. It may suggest a potentially growing demand and limited supply. However, we cannot draw this conclusion without understand the underlying property market and the types of properties that were sold in the area. Affordability: For potential buyers, the median house price also provides a quick snapshot of the market's affordability. The median price of a suburb can help buyers determine if there are properties that are within their budget in the area. Policy Making: The median house price is one of the many parameters used by governments and policymakers to make informed decisions about housing policies, subsidies, and regulations aimed at improving housing affordability and availability. Limitations of the Median House Price as a Market Indicator While the median house price offers valuable insights into the typical price of properties in the area, it has several major limitations that can lead to misunderstandings and confusion about the market's true condition. Property spruikers proclaiming "BOOM" locations are unfortunately often abusing this confusion to convince buyers that what they are selling are top quality investment properties in "BOOM" locations. Let's discuss the Problems with Median House Price Reflection of what Buyers are buying . The frequently used median price is simply a reflection of what property buyers are buying in the area . It does not necessarily mean all properties in the area are worth that price. The median price alone, does not indicate where the property market is heading. Does Not Reflect All Market Segments: The median house price is influenced by the mix of homes sold . For instance, a larger than usual number of high-end, more expensive quality houses sold in a particular period, will shift the median price, likely causing it to rise, even if the prices of most mid-range or low-end homes remain stagnant or decline. Conversely, a surge in the sale of lower-priced homes can drag the median price down, masking strength in the higher-end market. Thus, the median price can only be reliable when the mix of the types of properties sold remain similar across the periods. Ignores Supply and Demand Dynamics: The median house price does not account for the underlying supply and demand dynamics of the market. A rising median price might be wrongly interpreted as a sign of a strong market, even if there is an massive oversupply of properties in the area. Ignores the Types of Properties Buyers are buying. For example, in green field locations undergoing massive redevelopment, it is normal to see massive increase in the median prices, as cheaper, farm land properties are being sold and redeveloped into new houses. As more of these expensive (due to expensive labour and building materials), yet smaller house are being sold, it the Median Price will shift . But does this mean the prices are increasing and thus is a good location for property investment? No. New greenfield suburbs are known for their massive oversupply, high vacancy rates, thus the lower rental. Hardly indicators of a good location for investment. Now, when developers raise prices of new homes in line with higher labour and building material costs, does this mean the prices of older properties will increase? No. It usually does not. An old $400k house, will still be worth $400k, if there are no demand. Regional Variations: Housing markets in Australia and Victoria are highly localized. National or even city-wide median prices can obscure significant regional variations. For example, the median price in a city center is vastly different compared to the suburbs. As a result, the city-wide median price will not accurately reflect conditions in local suburb. Housing Market Health: The median house price does not provide insights into other crucial factors, such as the number of days properties stay on the market, the inventory of unsold homes, or the number of foreclosures. These factors are essential for a comprehensive understanding of market health. Here is why Median Price Is Not A Good Indicator of Market Strength Now that we know what a median house price is, and how it is not always a good indicator of house price trends, let's go through some examples of why median price is not a reliable indicator of market strength. 1. High-End Sales Skewing the Median: Imagine a scenario where a high-end luxury property development is released in our fictitious suburb called Wonderland. And the project's success resulted in 2 luxury mansions worth $3 million each being sold to wealthy buyers and investors. Now, these 2 property sales will be added into the list of sold property prices, as follows: $400,000, $500,000, $600,000, $1,000,000 , $1,500,000, $3,000,000, and $3,000,000. With these 2 x $3million sales, the median price has now increased to $1,000,000. The $1,000,000 house is the mid point (median) of the list of sold prices. These two high-end sales have significantly pushed the median price up from $600,000 to $1,000,000, resulting in a 67% increase in median price. Does this mean all other properties in the suburb is now worth 67% more? No. However, sales agents, project marketers and dodgy buyers agents would want you to think so, but it does not work this way. It's important to understand that this rise in the median price does not indicate a broader market trend. The prices of the other five properties remain unchanged. That initial $600,000 property is still worth $600,000, and no buyers will pay $1,000,000 for it. Buyers who focus solely on the median price might incorrectly assume that all market segments are experiencing strong capital growth. And real estate sales agents and apartment project marketers will not hesitate to misuse this confusion to convince buyers that apartments are good investment properties, claiming that "data do not lie." This "data do not lie" narrative is misleading. Older properties might have less demand now, and prices could have subsequently decrease. Understanding the nuances of the market and looking beyond median prices is critical for making informed real estate decisions. 2. Surge in Lower-Priced Home Sales: Let's consider the scenario where a developer launches a new affordable housing project in the Melbourne suburb of Wonderland, resulting in the sale of two $400,000 properties. This sold price is lower than the median as these are entry level houses on small lot sizes and with minimum specifications... How will this influx of affordable housing affect the median property price? Because of these 2 cheaper houses being sold, the list of sold prices are now: $400,000, $400,000, $400,000, $500,000 , $600,000, $1,000,000, and $1,500,000. With these sales, the middle of the list is $500,000 , and this means the median price is now $500,000 . Sales of these two more affordable houses have pulled the median price down, resulting in a 17% drop from $600,000 to $500,000 . Does this mean all other properties in the suburb is suddenly 17% cheaper? No. It doesn't. It's crucial to understand that this decline in the median price does not indicate a broader market trend. The prices of mid-range and high-end properties remain unchanged. There has been no change to the prices of the other five properties. However, potential sellers might panic, misinterpreting the drop as a sign of a weakening market, even though the demand for mid-range and high-end homes remains strong. Similarly, budget-conscious buyers might mistakenly believe that prices in the area have fallen by 17% and are now expecting similar "discounts" on all other properties. In reality, the $600,000 property is still worth $600,000. Educated buyers will recognize this and offer the appropriate value, while buyers without a good understanding of what the median price means, will lower their offers, based on the misperception of a price drop, resulting in their offers be out-bidded. 3. Regional Disparities: A recent report from a major property website shows a 1.5% price decline in Q1 2024. This makes for compelling mass media headlines and clickbait, as it caters to what readers want to see. Without understanding how these numbers are derived or examining the specific sales data, buyers and investors are often being misled into thinking that property prices in Melbourne are universally falling. However, a closer examination reveals a different story. Prices in inner-city and popular prestige suburbs such as Mentone and Bonbeach have actually risen by up to 1.8% in the same quarter. In contrast, suburbs with a high concentration of over-supplied apartments like South Yarra, Carlton, and Melbourne CBD have experienced declines of between 1.3% and 1.8% due to oversupply and very poor demand. Relying solely on the city-wide median prices masks these regional disparities, potentially misleading both buyers and sellers. It's essential to understand the nuances and specific regional trends within the broader market to make informed real estate decisions. 4. Changing Market Dynamics: Now, during volatile periods and rapidly changing market conditions, such as during a market downturn, high-end homes are often the last to sell, while more affordable homes continue to be sold. This situation usually lowers the median price, but does not accurately depict the lack of activity (sometimes zero sales) at the high end of the market, which could indicate deeper economic issues. How do You Understand the Market Strength? To get a more complete picture of the housing market's health, our buyers advocates tend to analyse other indicators such as: Inventory Levels : The number of homes available for sale can indicate whether the market favors buyers or sellers. A low inventory often leads to higher prices and bidding wars, while high inventory can signal a buyer's market. Sales Volume : The number of homes sold over a specific period provides insight into market activity. A high sales volume usually indicates a healthy, active market. Days on Market (DOM) : This metric shows how long homes typically stay on the market before being sold. A declining DOM indicates that homes are selling faster, suggesting strong demand. Price per Square Metre : This figure is seldom used in Melbourne, but it can provide a more granular view of home values, helping to compare different properties more accurately. Affordability Index : This index measures whether a typical family earns enough income to qualify for a mortgage on a median-priced home. It helps gauge how accessible homeownership is in a given market. Do note that different data sources can have different definition of this, and the number is not directly comparable across different sources. Matrix of the above data: Segmenting the above data is something obvious, but which is often overlooked by all buyers. Buyers do not have enough knowledge to segment the above data properly, often resulting in wrong interpretation and analysis of the market condition and property value. Boots on the Ground Validation: The data only tells a historical snapshot of the property market. This data can often be 3 to 12 months late. Some popular indicators such as population, income, socio-economic indicators can be more than 7 years late. This article will explain why . Nothing beats a "Boots on the Ground" visit to the location, familiarise yourselves with the up-to-date dynamics of the property market in the area. If you are buying in Melbourne but are unable to invest these time and resources into this due diligence, our local buyers advocates are more than happy to assist and provide that information. We buy across the entire Melbourne and Victoria and have extensive local knowledge in most popular suburbs. What's next? With this understanding of the relationship between house prices and median prices, and its irrelevance in helping you determine what you should pay for your house, it is time you stop making yourself look silly by walking into a real estate agency and demanding a 2% discount in house prices simply because the media says the median house prices in Melbourne have fallen 2%. You might save yourself some embarrassments to do a bit more research and equip yourself with more relevant information before you get sorely disappointed. Why is the Median Price Used, Despite Its Limitations? The median price is frequently used in real estate reporting because it is easy to understand and interpret (and misinterpret ). Mass media focuses on readership and clicks, aiming to generate as much advertisement revenue as possible. Presenting complex data sets and explaining the correlations and underlying stories can often be confusing for readers. Therefore, it is simpler and more effective to present a single, easily digestible number, even though most readers do not fully understand how the median price is derived. While the median price offers a quick snapshot of the market, it can be often misleading. It does not account for regional disparities or the variety of factors influencing different market segments. This simplification often result in misunderstandings among buyers and sellers, who might not see the full picture. Despite its limitations, the median price remains a popular metric due to its accessibility and the media's preference for straightforward, attention-grabbing numbers. Conclusion While the median house price can be a useful tool for getting a quick snapshot of the housing market, it should not be relied upon exclusively to gauge market strength. Understanding its limitations and considering additional indicators can provide a more comprehensive and accurate picture of the real estate landscape. By taking a broader approach, buyers, sellers, and policymakers can make better-informed decisions that reflect the true health of the housing market. If you are uncertain with the market performance data, have a chat with our buyers advocates.

Everyone hopes the process of buying their property in Melbourne is as smooth as butter. While experienced buyers are usually confident in selecting and buying properties on their own, it is common to see buyers caught off-guard when the purchase runs into issues. Sad to say, because the buyer has already sign a legal contract to buy the house, problems during property settlement can be significant and can cause major complications. After your offer is accepted in Melbourne, several things can still go wrong during the settlement and conveyancing process. Some common issues includes financing, building and pest inspections, delays in settlement, and potential disputes. It's crucial to know what the potential pitfalls are and take steps to mitigate them. In this article, our Melbourne Buyers Agents will discuss the common problems that can go wrong in the property buying process, and show you strategies to protect yourself. Based on our buyer agents’ experience, over 80% of property purchases come with unexpected problems . Some are minor. Others are serious — and expensive. The good news? Most of them can be avoided or resolved — if you know what to look for and how to act quickly. What are Common Problems During Property Settlement? What can go Wrong AFTER Your Offer Has Been Accepted and How do You Prevent Them? So, you've found your property, you've submitted your offer and your offer has been accepted. Congratulations! But is your property buying process over? Absolutely Not. In fact, that is only half the battle won. And the other half is where the most stressful and costly problems begin. What can go wrong here can be issues that bite you the hardest. Pre-offer, the vendor has something they want to sell, and you have the leverage to negotiate and make your demands accepted. Once your offer has been accepted, this leverage instantly disappears! Just like buying a car. It is a lot easier to negotiate with the salesperson before signing. But the moment you sign on the sales contract, you become a liability, and your negotiating power is gone. Any issues that arise is YOUR problem. Buying your house works the same way; you instantly lost that negotiation power after the contract is unconditional. The balance of power shifts completely. Why Post-Offer Problems Hurt the Most This is the stage where experience truly matters. Without it, buyers can fall into traps that cost tens of thousands of dollars — from unexpected contract terms, hidden issues discovered during inspections, to financing delays or vendor non-compliance. Experience can help prevent you from regretting the purchase. Or if the inevitable happens, Experience can help you navigate the problems and negotiate with the vendor and sales agent. The bulk of tough problems happens POST Purchase. AFTER your offer has been accepted. The risks are real, and the consequences can be financially painful. We’ll walk you through some of the most common post-offer issues our buyers advocates have helped resolve — and more importantly, how we fixed them for our clients. Learn what can go wrong, and how to avoid costly mistakes with expert support on your side. 1. Final Inspection Shock: Tap Leak & Flooring Damage What happened: A client was excited to move into their first home — until our buyers agent discovered the slow leak under the laundry sink during the final inspection. We suspected the leak happened when the vendor removed their washing machine, without realising the tapware had aged and was leaking. By the time this was discovered during the final inspection, the tap had been leaking water-damaged flooring across half the living room. Mould had also started forming and this necessitated the removal of walls to treat the mould and and rebuilding it. It was a tiny little blotch in the flooring that triggered this investigation. The vendor initially denied the leak and suggested that it was already leaking while the house was put on sale. A claim which as denied, with detailed photographic proof, by our trusted property inspector. Estimated repair cost: Nearly $30,000. How we fixed it: We immediately informed the agent and raised this with our solicitor. After a series of problem solving negotiations, we concluded to holdback a sum from the settlement proceeds. Being builder trained, our buyer agent confidently understand and explained the extent of the leak and we were able to provide an accurate high level estimate of the cost to repair. Without the experience of our agent, the buyer might’ve settled blindly — and paid the significant price later. 2. Final Inspection Surprise: Vendor Not Moved Out What happened: At a recent final inspection — just 3 days before settlement — we were shocked to find the vendor hadn’t fully vacated. Furniture, rubbish, and personal belongings were still scattered throughout the property. Understandably, this raised immediate concerns for our client who was preparing to move in. Why it’s a problem: If a vendor fails to vacate by settlement, it can delay the buyer’s move-in, rental collections, incur additional removalist and storage fees, and potentially breach contract conditions. It's a situation no buyer wants to face — especially without representation. How we fixed it: We acted fast. First, we raised the issue with the selling agent and expressed our concern about the high risk of the vendor not vacating in time. We encouraged the agent to explore immediate alternative arrangements with their client. At the same time, we alerted our buyer and walked them through the options and legal contingencies. We also looped in our solicitor team in case formal action became necessary. Ultimately, the selling agent arranged alternative storage options for the vendor’s belongings — but with such a large volume of items, timing remained tight. Acting as both mediator and problem-solver , we negotiated a win-win-win outcome: The vendor was given a short, structured extension to finish moving Our buyer’s plans were not affected Settlement proceeded on time and without penalties The result? Our client took possession as scheduled — with peace of mind, no added costs, and no legal headaches. 3. Building & Pest Inspection Reveals Structural Damage What happened: During a routine pre-purchase building inspection, a serious structural issue was uncovered — the home’s flooring was tilting beyond what is acceptable under Australian Standards. This wasn’t something visible during open inspections and could have easily been missed by an untrained eye. While the defect wasn't considered immediately dangerous, it was classified as a serious structural issue , with the potential to compromise both the building’s safety and its future resale value. How we fixed it: With our background in construction and property, we recognised the warning signs instantly — and more importantly, we knew the potential cost and risk involved in rectifying the issue. We advised our client to walk away — and thanks to the building and pest clause we had included in the contract, they were able to exit the purchase and receive their full deposit back. Within just a few weeks, we helped them secure a superior property with no structural concerns — one that not only provided peace of mind, but also showed stronger long-term growth potential. The lesson? Don’t rely on appearances. Even good-looking properties can hide major flaws — and without the right guidance, buyers could end up footing a costly repair bill down the line. 4. Valuation Comes in Short What happened: A client was excited to purchase a brand new apartment in Melbourne’s CBD — a sleek development marketed heavily to investors. But here's the catch: most developer contracts don’t allow finance or building clauses , leaving buyers exposed if things go wrong. Understanding the risks, we stepped in early and negotiated key contract amendments to protect our client — including a finance clause , which is rarely accepted by developers. Our reputation in the real estate market and volume as a buyer advocate in the market helped us push for these terms successfully. As anticipated, the bank's independent valuation came back $200,000 short of the purchase price. That meant the buyer would have had to fund the entire shortfall — an enormous, unexpected financial burden. How we fixed it: Thanks to the finance clause we insisted on including, and our connections, we were able to safely exit the contract without penalty when the loan application was declined based on the lower valuation. We protected the buyer from a potentially devastating financial outcome. The takeaway? In off-the-plan or new developments, buyers often get caught without an exit strategy. But with the right representation, you can protect yourself, avoid overpaying — and walk away when things don’t stack up. 5. Vendor Refuses to Fix Promised Repairs What happened: During negotiation, the vendor agreed to fix a list of maintenance items prior to settlement. But just before final inspection the sales agent disputed the agreement and the vendor refused to fix the maintenance items. How we fixed it: We produced written evidence of the vendor’s commitment, raised it with the sales agent, and gave the vendor the option to negotiate a direct compensation to the buyer or have the issues rectified. With the written agreement, the vendor had no choice but to address the issues, or risk us walking away from the purchase, plus compensation. Conclusion: Why Experience Matters Buying property isn’t just about finding the right home — it’s about managing risk, anticipating problems, and knowing how to navigate surprises, throughout the entire process. Over 80% of purchases will be problematic. Whether it’s a misleading listing, a last-minute defect, or a dispute with the vendor — these things happen far more often than most buyers expect. That’s why we exist. Buyers Advocates Protects Property Buyer's Interests At Concierge Buyers Advocates, we don’t just help you find a property. We walk the entire journey with you — protecting your interests, avoiding costly mistakes, and giving you the confidence to move forward. If you're planning to buy — especially if you're interstate, overseas, or short on time — get in touch today. Buy smart. Buy safe. And make sure you’ve got the right advocate on your side.