Real estate advice: mistakes buyers, sellers should avoid in 2022
Property market across Australia showed their strength this year, as house prices surged amid the adversity caused by Covid.
But real estate experts have warned buyers and sellers not to expect history to repeat itself in 2022, with early signs of softening demand.
Here are the property mistakes to avoid in the new year.
DON’T PLAY THE WAITING GAME
Buyers needed to be ready and able to make an offer if the right property came along, Wakelin Property Advisory director Jarrod McCabe said.
“Don’t expect every campaign to go the distance,” Mr McCabe said.
“Even in a softening market, vendors might be prepared to look an at offer early if they don’t have the competition to sustain an auction.
“Avoid getting left behind by expecting you will turn up on the day and put in a bid.”
Infolio Property Advisors managing director Lauren Staley also warned against trying to time the market.
“Those waiting for the cliff cost themselves,” Ms Staley said.
“Its very difficult to time the market. So if its your principle place of residence and you are in it for the long haul, don’t get too smart as you will likely lose out again in 2022.”
DON’T MAKE SHORT TERM DECISIONS
Buyers and sellers should focus on the big picture to avoid getting swept up in the hype of the market, Ray White chief executive Stephen Dullens said.
“Buying or selling a property is a big decision, so our advice would be to ensure the fundamentals makes sense and make these decisions for the long term, rather than short term,” Mr Dullens said.
“Buyers (should) have an understanding of what they want to achieve – what is their budget, which area do they want to purchase in and what features of the property are important for them and their family?
“For sellers, having an understanding of why they are selling and what is next for them (is important). This is particularly true if they are buying and selling into the same market, where conditions will be similar on both sides.
“By doing this, (they’re) doing their best to focus on the long term rather than short-term fluctuations.”
DON’T BE GREEDY
Sellers needed to be realistic with their price hopes moving into the new year.
“They need to be conscious of not being too greedy,” Mr McCabe said.
“Sentiment has changed and you need to be mindful of when to sell. Don’t get caught up selling in a highly supplied market – the amount of auctions in December has been huge and that’s left vendors with a lot of competition.”
“(Consider) when buyers are around and look ahead to what interruptions are ahead; could there be a lockdown? Are there holidays coming up?”
Barry Plant executive director Mike McCarthy agreed, telling buyers not to “get caught up on an outlying result”.
“There might be a property you missed out on that you thought was a bargain, but don’t get hung up on the price next time you see a similar property because it might be a one off,” he said.
“We’ve just been through the hottest market we have ever seen and those conditions have clearly eased. Talk to the agents and do your homework on what sale prices have been in the last month.”
DON’T PLAY GAMES
Buyers should avoid playing games, like making low-ball offers on listings they really liked, Mr McCabe said.
“Be careful finessing price expectations too much,” he said.
“Buyers can sometimes be a little too cute around price. If the property is there and it’s near your budget, you need to go in with the mindset of (what price) am I prepared to miss this property at.”