Market Comment – Monday September 15th 2008

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The clearance rate jumped to 68% whilst total sales dropped by just under 2%. There were 959 total sales last week reported to the REIV. 366 properties sold via an auction campaign, either before, during or after an auction was advertised, whilst 539 properties were sold by private treaty. As we move into the busier part of the spring selling season during October and November, it will be interesting to watch whether the numbers of Auctions will increase. There is usually a greater urgency for purchasers, coming closer to the end of the year, to try and be settled before the start of the new school year. This puts a greater demand on property. Will there be an equal supply, or will prices be forced up due to the Supply vs. Demand equation? Only time will tell.

There will be some increase of property and this will mean purchasers will need to reassess their searching techniques. It is better to filter your choice of property when looking on the internet and then talking to the agent to try to cut down on the number of properties you need to view. On a Saturday and Sunday there are only so many open times and “Murphy’s law” predicts all the properties you want to view will be open at the same time or at opposite ends of the day. Each week you should be refining your parameters to reduce your need to visit every property. Here are some handy hints when searching:

  • Know what you want and try not to get sidetracked.
  • Write out a run sheet before you leave home. Note the address the open time and the agency name.
  • Regularly attend auctions of similar properties in your target area.
  • Keep notes on properties you have seen and then follow up what happens at auction.
  • Before inspecting any property, call the agent and ask him what price they are quoting. (Many agents now do not indicate this in their advertisements).
  • Try not to view too many properties in a row – you can easily merge their details.

If you are going to buy a property without assistance, you must try and mitigate your lack of experience. Have a plan, work out the type of property, style of property, its characteristics, its size and its value. THEN STICK TO IT.

Have a look at our “How to” series for more tips on the property buying process.

Ian James

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About the author

Ian has been operating his own businesses for more than 25 years. During this time the self taught lessons of building the business, dealing with staff, suppliers, clients and economic woes have been invaluable. Ian is a fully licensed Real estate Agent, a member of the REIV and registered with the Business Licensing Authority.

Buying property is not just sticking up your hand and outbidding your rival. It is an emotional, fiscal and psychological decision that needs to be planned and well executed. Ian is usually involved in over three hundred property negotiations per year; ranging from the $250,000 first unit purchase for a young couple to multiple million dollar residential developments. Ian's business background and endless numbers of negotiations make him one of the industry's leading negotiators.

Ian is married with two adult children, living in Patterson Lakes. He is a keen fisherman when weather and business allows the time.

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