Secrets To Buying Property In a Hot Market

https://www.youtube.com/watch?v=-EivK-R6yxg&ab_channel=OnProperty The market in Brisbane and right across Australia is heating up so much right now. Negotiating and buying property is a hot market requires very different strategies to a cold market. In this video we share some amazing tips for how to negotiate and secure your next property when the market is extremely hot and properties are selling extremely fast. Book a Free Strategy Session 0:00 - Introduction2:06 - What is a hot market?5:10 - Building relationships with agents10:40 - What to do once the market comes online12:40 - The agent is your friend in a hot market13:40 - Build trust and value with the agent16:28 - Review the contract and be prepared when making your offer17:50 - How to present offers and negotiate21:13 - Helping the agent move the deal forward24:30 - Creating time pressure26:28 - If the property goes to the open home33:20 - Avoiding the bidding war and not getting emotional34:40 - Looking at the upside potential by looking at history Recommended Videos: How To Get Access To Off Market Properties How To Inspect A Property Before The Open Home Newbies Guide To Property Negotiation Transcription Ryan M 0:00The market in Brisbane and right across Australia is heating up right now and buying in a hot market is so different to buying in a cold market. I just sat down with Ben Everingham, buyer's agent from Pumped on Property. And we talked through some key things about how to buy and secure property in a hot market. We're going to be sharing this video, it's so good. We're sharing across both our channels. So I'll link up to Ben's channel down below where he does, he's of great content. And so go and check him out. Otherwise, let's get straight into the video. The market up here in Brisbane and on the Sunshine Coast is heating up so much at the moment. It's not just heating up man, it is so hot right now. And the way you approach purchasing property in a hot market versus a more cold chilled up market, which we've seen over the last few years in Brisbane, as well as during that peak Corona lockdown period is very different the way you need to negotiate the way you need to talk to agents, the way you need to try and lock down these contracts and get these properties is very different. And if you don't do it properly, then you're going to miss out and we don't want you guys to miss out, we want you to get the best investment properties at the right price. So today, we're going to be talking about how to negotiate and purchase investment properties in a hot market. I'm Ryan from OnProperty helping you achieve financial freedom. I got with me Ben Everingham, buyer's agent from Pumped on Property. And he has been doing this all man you know, all the last couple of months is just hot market negotiation. So really excited for this one today. You know, I'm loving it. It's what February at the time of recording this this year to date. I think we bought 20 I bought 22 properties for our clients personally and it is really hot out there right now. And like I just said to you off camera that even with everything that I know, which is I've been doing this as a business for five and a half years but I've been selling in negotiating for a lot longer than that I've read the books, I've listened to the audio and I'm only getting four out of every six properties still, you know it is hard. It's taking everything to like get the right outcome at the moment. Yeah. overpaying. So let's before we get into it, let's talk a little bit about Okay, what is a hot market? Why is Brisbane and the Sunshine Coast? so hot right now? so hot right now. So hot right now that fridge is so hot right now. So long right now? Yeah, I'm actually growing the hair out besides like this awkward length. But so a hot market to me is simple. From a data perspective. It is either an auction clearance rate of over 75% in Sydney, or Melbourne or one of those big regional markets where options actually work. in Brisbane, Adelaide and Perth auction clearance rates are still like 35%. So reading that indicator, it looks like low and not hot, but it's not that. The other one that I look at is DSR score. Yeah, when the DSR score gets above 70, it is hot as hell and hard. So we're seeing so hot, we're seeing like those markets at the moment. Every server we're buying is above 70%. Now some of them are getting over 80% auction clearance rates are going nuts in Sydney and Melbourne and sentiment and positivity drives higher prices. And you know, we're looking at a market according to Macquarie Bank and Westpac West sentiments at its highest point in the last seven to 10 years right now. And so that's having a knock on effect of RTB, right if we overpay cause I expect gains in the short term to make that back. Exactly. And some other things that you notice in a hot market is an increase in properties selling off market. So not even coming into real estate or domain, they're just, you know, going straight to the list that the real estate agent has anything sold going straight to buyer's agents like the team over Pumped on Property, you've also got less vendor discounts. So the asking price that they're asking for, they're less likely to discount it or property selling over, you're also when you're going to open for inspections, there's going to be more people their properties, if you're going to sell quicker as well, you can look at days on market. And if that starting to shrink, then you can see that okay, properties are staying on the market, not as long. And that indicates that a market is heating up. So when you don't have that time period, because properties are selling faster for less of a discount. You don't have that couple of weeks to just take your time negotiating with the agent a couple of weeks that sort of thing. And so yeah, the approach you want to take is very different. Because otherwise, someone's going to come in and snap out that property before you've really had a chance to negotiate and try and settle on it. You know, we're talking about property selling in Sydney, Melbourne and Brisbane in the right suburbs right now either fully off market, and that's 50% of them, or within one to two days of coming online and like so. It's kind of like cool. This is the environment we're in now, what do we do about it? You know what I mean? And there's a strategy for that. Exactly. So let's talk about that strategy. What is that strategy? How are we going to approach things? Ben 4:54Cool. So as Ryan said, this is a hot market strategy. Effectively, what we want to do is get Trouble of the property before the first open home in the first weekend that it comes online. Yeah. So relationships with real estate agents is so key in hot markets. So it's everything talking to the real estate agents in the area, finding the highest performers of the agents in the area who sell most of the properties as well. Getting onto them, letting them know that you're looking, letting them know what you're looking for, in what kind of price range and getting on their list and getting aware of it. Also calling them on a regular basis to find out if there's anything new coming up in the future, then you can start to get these on like off market listings, or you're starting to build that rapport with agents as well. So even if the property does come to market, and you find out about it, once it comes to market, if you build that rapport, the ability to then be able to see that property before the open home increases, and that's where you're going to have more power in a hot market. He is saying a property and negotiating on it before anyone else has seen it, versus going to the open home on a Saturday with 60 other groups. And then you're all negotiating together. Sure. So like there's really three types of transactions that happen. that happen. Wow, that happened. That happened. So one is the beautiful off market listing. That's how we buy 25 to 60% of our properties each week, I get a call from Jess, she's like, Ben, I've got you exactly what you've been after, for the last five years. Sweet. Jess, I talked to the client for half an hour, we talk about all the comparable sales and logic, the clients already been educated for eight weeks. So they're feeling super excited and waited for that unicorn to come up. And then we send through a contract just drives around to that property that afternoon and the deals done. And that is the unicorn for the average person, what people don't know is I've run guest twice a week for five years. every single week is a KPI in the business. And so my relationship with Jesse is going to be a lot deeper than someone else's. And and also, there's that relationship there with Jess, where she's done property deals with you in the past that have been straightforward, easy, it's settled, she knows that, okay, if she comes to you, a property suits a client, for the right price, the right parameters that a deal is going to get done and pretty straightforward as well. So you're not a difficult person to deal with. And it can be a lot of trust, and a sure thing for her and for her client, which is a major benefit. Now, you out there as individual investors, you're not going to be a buyer's agent buying, you know, multiple properties every single month to have those sorts of deep, deep connections in the market and with agents. But what you can do is you can get your pre approval, you can be serious about, you know, knowing what you want, knowing what price you want. And then when the agent does come to you with properties, giving feedback to the agent and saying, okay, yes, I like this property. But I'm not like I didn't like this thing about it, or I'm looking for this. So the agent gets really laser focused on what you want. And so that when they bring something to you that does tick all the boxes, then you're ready to move,