We speak with many sellers who are ready to move on from their home but feel daunted at the prospect of buying a new place on the Northern Beaches because they are worried about competition and rising costs.
The good news is there are a number of solutions to help get you through the door of your next place, wherever that may be. Before we share our ideas, take a quick look at the Sydney property forecast for 2024.
Sydney real estate in 2024
After a tumultuous few years, the Sydney real estate market settled down somewhat over the past 12 months.
Despite dire predictions at the beginning of 2023 that the market would crash, it actually bottomed out early in the year and has risen steadily since. The reasons for the continuing rise in prices seem to be insecurity around interest rate increases (making people buy sooner rather than later), growing immigration numbers and buyers who are cash-rich. Meanwhile, demand has outstripped supply, which has kept prices high.
It is being predicted that house prices across Sydney may rise by as much as 4 per cent over the coming year. If you’re looking to sell on the Northern Beaches, this is great news but if you want to buy as well, you may be feeling nervous about the competition you will be up against.
How to be a successful buyer on the Northern Beaches
Once you have sold, you will have a few weeks to find and exchange contracts with another seller. If you want to give yourself a bit of breathing room, you might decide to rent a place so you have more time. Otherwise, follow these tips as you prepare to put in offers:
Get your finances organised
One evergreen piece of advice when you’re looking to buy in any market is to have your finances in order.
If you have pre-approval arranged with your lender, you will be able to place an offer, have it accepted and exchange contracts very quickly. Vendors will be happier knowing you’re finance-approved and there won’t be any issues in the runup to settlement.
Having pre-approval also means you’ll know your financial limit and can bid up to it. This will save you from overbidding at auction and putting yourself in a tricky situation.
Be flexible about postcode
You might have your heart set on a particular suburb but if you widen your search you could have more options. With prices high at the moment, many families are finding they need to compromise on location but there are still so many beautiful homes and communities around the Northern Beaches to choose from.
Talk to lots of agents; they might have a home in mind that matches your criteria and that your family will love.
Keep a level head
Buying a home is an emotional experience but it’s important to stay calm. A home isn’t yours until the seller has signed the contract so don’t get ahead of yourself.
Here are two ways to make sure you keep level-headed:
1. Make a strong offer
In this market, you need to make a serious offer immediately. If you try to play games to pay a lower price, odds are another offer will come along and rule you out of the running. With the current market’s competition, you must put in a serious bid right away to let the vendor know you are serious. Explain to the agent that you’re serious and keep a little bit of ‘wriggle room’ to up the amount if you have to. You will experience when you sell with a good agent that an extra $25,000 or so can go a long way to seal a deal.
2. Keep your offer simple and be flexible
Along with putting in a strong offer, you also want to avoid adding too many conditions or clauses to the sale.
At the same time, the seller might actually want to add conditions such as a three-month settlement so they can find somewhere to buy, or clauses about how they use your deposit money. If you’re willing to be flexible, you may end up as the preferred buyer.
3. Have a conveyancer and property inspector on standby
You will have used a conveyancer to sell your home. Let them know their services will be needed again so they are ready to help. They can talk to you about pushing to waive the cooling off period so the deal is done quickly and no other buyers can push you out of the running.
It’s also a good idea to connect with a building inspector so they can review the place you want to buy and let you know about any hidden problems before you exchange contracts.
If you’re really struggling to find a place, you can ask your selling agent for some tips. We love matching people with houses and can give you some advice to get you into your next place sooner.
We’re finding sellers on the Northern Beaches are looking for a strong offer and a quick sale. Come in with confidence as early in the game as you can and you will have more luck as a buyer.
Ready to buy a home on the Northern Beaches? Get in touch today.