While it may be a ‘buyer’s market’, investors and home buyers considering a purchase should still take care to ensure they pay fair market value, one industry figure has warned.
Chris Gray, CEO of Empire Property Portfolio, said investors and home buyers must remember that real estate agents are out to achieve the best sale price for their client – the vendor.
“Most buyers are on their own, and are vulnerable to being misled or even gazumped by unscrupulous agents looking to achieve a higher price for their clients or to add to their own reputation for getting a high price,” he said.
“I have not met a buyer who wants to pay more than they have to for a property, but it can be all too easy to pay too much without realising it,” he said.
Mr Gray said buyers must remember to research the market and put in the legwork before committing to a purchase.
“You must put in the hours attending open for inspections in your chosen area to get an idea of what property is selling for,” he said.
“Sites like RP Data and Residex can give you reports on average values for a suburb and potential yields. Reading the property magazines is also helpful.”
Mr Gray said buyers should also be cautious of any ‘bargain’ buys.
“You don’t want to pay too much but it’s just as important you avoid anything at a bargain basement price – it’s usually a bargain because no one really wants it, and won’t net you good returns in the long run,” he said.