13 tips to trading up in a hot property market.

Climbing the property ladder can be a tricky manoeuvre in boom times but there are some simple steps to put you ahead of the pack.

1. Sell then buy, or buy then sell? It’s an age-old dilemma but you need to evaluate the market to make a call. Selling first is typically a good strategy in a flat or falling market, and gives you certainty about what you can spend on a new home. But in a rising market, a buy first-sell later strategy can maximise your sale price. And there’s another advantage – having a property in your back pocket can give you an edge, which leads neatly to the next tip.

2. Dangle a line: In a hot market buyers need to stand out from the pack. Your existing property could do the trick. Let agents know you’re trading up and will need to list your old home when you secure a new property. Listings rather than sales are the pain point for real estate agents at present. Although you’re not obliged to list with anyone, it should give agents an extra incentive to keep you in the loop and let you know about suitable properties they may have coming to market.

3. Finance first: It sounds obvious because it is obvious, but ensure you have finance arranged before you start viewing properties. You don’t want to fall in love with a house and end up scrambling to put an offer together. In a market where agents are fielding bids even before the first open house, you need to be able to move fast and understand your limits. Have a deposit ready to go. And speak to us if you need assistance with your finance.

4. Put experts on standby: Line up trusted professionals – from solicitors to building and pest inspectors – to run a ruler over any property or contracts as needed. When you see something you like, you need to be able to move fast to lock things in.

5. Consider a buyer’s agent: It used to be just a US or high-end property trend, but buyer’s agents are becoming increasingly common in the mainstream property market. Many are former real estate agents themselves, so you’re paying not only for their knowledge but their connections. With a growing trend towards selling off-market, buyer’s agents can help you jump on properties not widely advertised. They also commonly bid at auctions to remove buyers from the stress and emotion of the process.

6. Do your homework: Know your property and know the market. Don’t just look at listings, stay across recent sales by checking the sold tab on realestate.com.au and searching target suburbs. You should also find out as much as possible about any properties you are interested in before making an offer. CoreLogic’s property data service can help you find out who owns a property, how long they have owned it and what they paid. It may also tell you if they own any other properties. It may be helpful to know if vendors have bought elsewhere.

7. Make a strong offer: A hot market is not the time to play games. Signal you are serious and open with a strong offer. When there are multiple buyers in the mix, vendors are unlikely to be drawn into an extended negotiation of offer and counter-offer.

8. Offer to delay possession: While it may not necessarily cost you anything, offering the vendor extra time to move out could be an attractive proposition, particularly if they have sold before rebuying.

9. Be flexible with settlement: Ask the agent whether the vendor would prefer a short or longer settlement and try to accommodate this in any offer if you can. Sometimes something as simple as this settlement term can make all the difference when a vendor has several similar offers.

10. Put a deadline on your offer: While it is very much a sellers’ market at present, this tactic can return some power to buyers. Submit an offer with a deadline of 24 hours to receive a response. It lets vendors know that you are a motivated buyer and that there are other properties you are interested in if they are not serious about selling.

11. Work the agents: Develop a relationship with the strongest-performing agents in your suburb. Get on mailing lists and call them every week or so to check in on new listings. Nurturing a personal relationship may give you an edge to get in for early property viewings or off-market listings.

12. Cut out the middleperson: Why wait for someone to list before you offer to buy? Some professional real estate investors swear by conducting letterbox drops in their favourite streets or suburbs asking homeowners if they are interested in selling. This can be a good starting point if you’re looking at a tightly-held suburb.

13. Lastly, don’t let FOMO rule your decision making. There’s a difference between being quick to act and being hasty.

Looking to upgrade? Call anytime to run through your finance options for trading up.

The post On the up and up appeared first on Affinitas Finance.

What our customers have to say:

Adam, Brisbane

I wish there were more people like Tanya out there. She is such a lovely person, she knows her industry and she can explain finance in terms that anyone can understand. She is very professional, and approachable. I have already recommended Tanya to a work colleague, and they purchased their new home also finding Tanya a breath of fresh air. Thanks again Tanya for your help, and I will always use your services for any other investment opportunities that may arise.

Adam, Brisbane

Rachel, Sunshine Coast

No task was ever too great for you to handle. I found your service was extremely prompt and no query was ever too simple nor difficult for you to take on. Tanya, I felt as though I had trust in you from the very first phone call and you certainly met all of my expectations and more in a professional and friendly manner. Thank you.

Tanya, your interpersonal skills are second to none. Apart from being exceptionally savvy when it comes to your role, I found you incredibly approachable. Your happy disposition just made the whole experience of buying a property a joy. Thank you.

Rachel, Sunshine Coast

Pol, Brisbane

Your solution also took a lot more into consideration than just our home loan. You also answered all our many, many questions simply and quickly. You have an ability to explain intricate financial details in 'plain speak'. Your overall easy going personality and professionalism was refreshing along with honesty and frankness which was also appreciated.

Pol, Brisbane

Trish, Brisbane

It's difficult to narrow down what impressed me most - you provide an excellent service. I think one of the greatest things was that you genuinely cared about the result. You worked so hard and so efficiently to ensure that I was able to move forward in the process of purchasing my first home.

Trish, Brisbane

Shayn, Brisbane

Considering the complexity of the loan we have applied for Tanya has left me with a sense of assurance that our best interests were always first and foremost. Her explanation of how the whole process works was always presented clearly and confidently. She was always prepared to answer any questions we put forward and never hesitated in incorporating her own personal experience in any of her responses. We will continue to keep in touch with Tanya and when next we require loan assistance, Tanya will be number one on our list.

Shayn, Brisbane

Graham, Brisbane

Tanya du Preez has given me the advice that I couldn't get from the banks. Tanya advised us exactly how to achieve our investment goals for the next 5 years. If you are thinking about investing, your first investment should be 30 mins with Tanya. It will cost you nothing and could mean you retire early.

Graham, Brisbane

Sally, Brisbane

All parts of the process were explained simply and clearly so that I could understand what was going on as I have never applied for a loan before so this was all new territory for me. Thanks for all your help Tanya we were so glad to have your help rather than having to deal with a bank directly; much more personal and caring service.

Sally, Brisbane

Jennifer, Brisbane

I really appreciate your flexibility to meet with me at my convenience, advice based on knowledge and experience, referrals to other products and services and general sense of 'relief' that my future financial state is in good hands.

The whole team is both professional and friendly - a great wealth of experience. The service greatly exceeded my expectations and I gladly recommend your services to others.

Jennifer, Brisbane

David, Brisbane

All queries were promptly answered. Great staff correspondence, we were always able to access someone to raise concerns. We were impressed with the attention to details. Tanya really listens and takes notes of the type of people we are and what loan setup would suite us. The services you referred us to have impressed us as well. You are very approachable and never made us feel silly with our questions.

Knowing you & your team are looking after our lending needs gives us a peace of mind and has made the process almost stress free.

David, Brisbane

Brian, Sunshine Coast

Tanya has skilfully and successfully managed the complexities of refinancing our business and property affairs. This crucial and timely financial manoeuvre has involved a detailed assessment and understanding our current business operation and financial needs. In addition, Tanya has worked with us in planning our financial strategies.

Tanya has provided us with a high standard of service and advice that has saved our companies significant amounts of money and continues to expand our knowledge on how to operate in the new and ever changing banking environment so that it best suit our business and property portfolio's needs.

Brian, Sunshine Coast