How to try stop being gazumped

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.


Today we’re going to talk about what you can do try limit being Gazumped.

What is gazumping?

I look at gazumping as when you have an offer accepted on a property and are ready to exchange and all of a sudden out of nowhere someone has a better offer and has exchanged from beneath you.

Hence the term, gazumped.

Often times this offer is just higher than your offer.

Gazumping isn’t as common as it used to be in my opinion.

I feel many agents out there have some degree of ethics or morality.

Yet unfortunately a small minority, will let this happen.

I understand they are trying to do what’s best for their sellers.

However, shouldn’t there be some decency or honouring of thy word?

Here are some ways to limit being gazumped.

It comes back to speed, like a cheetah in the wild with prey in it’s midst.

Be quick to provide details for the sales advice.

These are usually your name, residential address, solicitor details.

Be quick to exchange on the contract i.e. signing and often paying the 0.25% deposit or sometimes it’s the deposit to go unconditional and a 66W.

Once the contract exchanges and enters a cooling off period or goes unconditional, you can’t be gazumped.

Try your best to get to that point as fast as you can, particularly if there is competition.”

…

What to do when everyone wants the property you want

Transcript
“Hello and welcome back to daily buying tips I’m Dean Berman from Berman Buys.

Today we’re going to talk about what to do when there is massive competition in the market for the property you want?

Firstly you must realise that property markets go through times of strong competition. Fuelled by factors such as low interest rates, less stringent borrowing and buyer/media confidence.

I feel like we are at a point in some markets where buyers were waiting and now are pouncing, like a hungry lion in the Savannah.

The more buyers the more competition, particularly for scarce properties. This is what ultimately causes prices to rise.

What should you do?

Understand that you will likely miss out on a number of properties before the right one falls into place. Don’t get deflated as this is simply part of the process. You need a degree of aggression when making offers. The offers need to have limited terms i.e. as close to an unconditional offer as possible. As the competition in many instances isn’t going to have conditions.

Conditions are things like the deposit amount, the settlement period, cooling off period, finance or pest and building clauses etc… It’s also very important to clearly convey your interest to the agent.

In this market it’s very common for a property to go under contract without you even knowing.

In summary, you want to generally put forward strong offers, with limited terms and be clear on your interest.

That’s a start to stay at least in line with the competition.”

…

Why patience is important when buying property

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about why patience is important when buying.

I often find buyers want to purchase as soon as possible.

You’ve made the decision, and you want it now.

Which is totally fine and understandable.

However, I would recommend that rushing isn’t the best idea.

Rushing is basically taking the first thing that comes along.

We are generally talking about alot of money here.

From hundreds of thousands to millions of dollars.

Sometimes you are lucky as a buyer and the perfect property comes up straight away.

Sometimes it takes a few weeks.

And sometimes a few months.

From my experience, it will eventually show itself.

Patience is important during this search timeframe.

Particularly if it takes longer than you had hoped.

I do understand often times there are time pressures from expiring rental leases.

Upsizing or downsizing from a property sale.

Or even continuing the investment journey.

My main tip would be to create an initial plan.

Then amend the plan as you go.

There will likely be one or two really important points which you should try and stick too.

I often find buyers goals change as the search continues and the market shows what properties are really worth.

Don’t get deflated.

Your property is around the corner, it just might have a few turns.”

…

Why it’s better to initially find out about the property

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about why it’s often better to initially find out about the property.

Than research the property.

In many instances I find it’s so easy to get caught up in the excitement of a property.

Looking at the potential.

The aesthetics.

The styling and location.

But what is often overlooked is if the property can even be purchased.

Because if you can’t purchase it, then it becomes an exercise in creativity which will end in disappointment.

If you are a buyer and want to buy a property.

Then fundamentally the success is in the buying.

This then comes down to the price you pay etc…

In regards to this.

It’s often a time consuming process to research.

It’s better to initially see if someone has made an offer.

Or even if the vendor is willing to negotiate.

Or sell before the auction.

Or the property may be under contract.

Or to realise the property you really like is well over your budget.

It can get disappointing when someone else has purchased the property you invested hours and hours into.”

…

Why having a property in a great condition increases it’s value

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about why having a property in a great condition increases it’s value.

Picture this, two properties.

One is rundown and requires work.

The second is totally renovated and sparkles.

The first one will require a variety of trades to bring the property up to a modern standard.

The second will require no work at all and is ready to move into.

Which one do you think will achieve a superior price?

Not only will the totally renovated one achieve a superior price.

But I would predict the return on the spending would be greater.

Than the actual spend.

For example if it costs $50,000 to renovate to a nice standard.

I believe in many instances the perception will be above $70,000+.

I guess it’s because buyers would rather have certainty than uncertainty.

Alot of buyers don’t have the time and desire to go through the hassle.

Most buyers would pay for that certainty.

Which is what makes renovations so interesting.”

…