In the current high-demand real estate market, buyers often struggle with the question, “how do I know how much to offer?”
This challenge is even more pronounced when properties are advertised without a price, such as offers, expressions of interest, or auctions.
No-price marketing has become an effective selling strategy, especially in a rising market.
“Current heated market conditions make it difficult to determine a price, which is why you’re seeing a lot more properties advertised this way – they let the market set the price,” said Joe White (pictured above), REIWA president.
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For buyers, the first step is to establish a clear understanding of their budget.
Consulting a broker to determine borrowing capacity is essential, along with securing pre-approved finance. This preparation provides a stronger position when making an offer.
“First, get a good idea of your budget. Go to a broker and find out what your borrowing capacity is. Then you’ll know what your limits are,” White said.
Advising clients to use price filters on real estate portals can streamline their search process.
Websites like www.reiwa.com allow searches within specific price ranges, even for properties sold at auction or marked as “offers closing by.”
Additionally, using the sold feature on these websites helps compare similar properties that have recently sold in the area, providing a clearer picture of expected prices.
“When you start your search, use the price filters on real estate portals,” White said. “When you search by price on www.reiwa.com, it will find homes within that range, even if they are being sold at auction or advertised as ‘offers closing by’.”
While these tools provide valuable guidance, outcomes are not guaranteed.
The strong market interest means properties often sell for more than estimated. However, conducting thorough research remains beneficial.
Armed with this knowledge, buyers should be prepared to make their best possible offer. This involves more than just the financial aspect. Asking the agent how to make the offer more attractive to the seller can be crucial.
In the current market, this might include offering a longer settlement period or allowing the seller to rent the home back temporarily.
“Ask the agent what you can do to make your offer more attractive to the seller,” White said. “In this market that could be a longer settlement, or the chance to rent the home back while they find a new home.”
Another strategic move for buyers is to work with a REIWA buyer’s agent.
By clearly communicating their needs and budget, buyers can have agents do the legwork, presenting suitable options and saving time and stress.
White highlighted the benefit, stating, “Finally, why not work with a REIWA buyer’s agent? You can let them know what you are looking for and what your budget is. They will then do the legwork and present you with options. This saves you time and stress.”
Navigating the current real estate market, especially with the rise of no-price listings, requires careful planning and strategy.
By understanding their budget, utilising available tools, preparing competitive offers, and considering professional assistance, buyers can effectively manage these challenges and find their ideal property, REIWA reported.
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