Media Release

Buyers are being warned to do their sums carefully and avoid overpaying for
property, according to the Real Estate Buyers Agents Association of Australia
(REBAA).

REBAA President Warwick Brookes said it was easy for buyers in an uncertain market
like this one to overpay for their home and/or investment.

“In times like this it is more important than ever that buyers research the market,
find out how much they can comfortably spend and stick to their budget,” Mr
Brookes said.

“The important thing is not to get too emotionally attached to any one house or property you are viewing.

“For this reason it’s worth investing in a buyer’s agent - a third party who can independently source, evaluate and negotiate a property on your behalf - who can tell you when to walk away and when to keep bidding.”

He said there were currently properties at all ends of the market selling over market value.

In December last year, Waimea House, a Federation Arts and Crafts-style residence in Sandy Bay, Tasmania sold for a record $8.5 million. It had only been sold nine months earlier in 2011 for a record $6.06 million.

“Home ownership is expensive in Australia and the last thing you want to do, especially in an uncertain market, is to overpay for your home and regret the decision for years after,” he said.

Here are a few tips to ensure you don’t:

RESEARCH COMPARATIVE SALES IN THE NEIGHBOURHOOD

Compare recent sales prices of similar houses in the area/s you are looking to help you decide on an offer price.

GET BUILDING AND PEST REPORTS

Make sure you get a professional building and pest report to understand the total costs required if more work is needed on the property. If unexpected repairs are needed, try to renegotiate the price and be prepared to walk away.

CHOOSE A HOME WITH FUTURE NEEDS IN MIND

Choose a home to grow with your family, one that has the potential to be extended or renovated. It may stretch you now but it may save you in the long-term in buying and selling costs.

LEARN AS MUCH AS YOU CAN ABOUT THE SELLER

The reason behind a sale can often be a competitive advantage. Don’t be afraid to ask the agent as many questions about the seller as you can. On the flipside, keep your own personal finances and details to a minimum.

NEGOTIATE

Be prepared to negotiate if you want the best deal and don’t be afraid to ‘haggle’ – it’s your money.

UNDERSTAND THE TOTAL COSTS OF BUYING

Don’t forget to factor in the total costs of buying i.e. the mortgage insurance, stamp duty, building and pest inspections, conveyancing fees etc.

TAKE OUT THE EMOTION - HIRE A PROFESSIONAL

Spending money on a professional buyer’s agent can save you tens of thousands by keeping your wish list and budget top of mind.

-ENDS-

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For more information contact:

REBAA President Warwick Brookes
Mob: 0412 340 611

About REBAA

The Real Estate Buyers’ Agents Association of Australia (REBAA) was founded in 2000 to raise the profile of buyers’ agents nationally and to establish guidelines for the professional conduct of real estate buyers’ agents. REBAA maintains a close working relationship with the state-based Real Estate Institutes as well as the national body and makes regular contact with other organisations to represent the interests of its members.