It seems that spring is now on us and the Whangarei property market continues to drive forwards. Prices are rising and properties are selling quicker than they have for many years. Many properties are being sold with backup offers in place. This has a number of implications for people looking to buy or sell.
Exercise caution when buying and selling property
As always, it is important to be cautious. Buying and selling a house is a significant decision, financially and emotionally. The risks of a wrong decision are lasting. So, make sure you know what you want and what you need. The speed of the market in its current state means that it is easier to make a mistake and be stuck with it.
Where properties are selling quickly there is pressure on purchasers to make a quick offer, perhaps before they have checked everything out. That obviously increases the risk for the purchaser.
There are obvious risks in making an offer without the benefit of standard conditions such as approval of a LIM, finance and a builders report. But the market pressure can mean that even agreements with those conditions in them can be fraught.
Make sure you meet the settlement dates
In the past where vendors were grateful for any sale, a purchaser was likely to get some leeway on dates. If a building inspection hadn’t been carried out or the report not received then most likely a vendor would allow an extension. However, where there are other purchasers waiting in the wings, that leniency cannot be relied on.
Where the market is moving fast, meeting all the dates can be crucial. If you don’t get the dates right the other party might get a better offer and cancel the agreement.
This means that it is important to understand all the relevant dates and make sure that the reports and responses you need are lined up and most importantly of all, that your sale and purchase dates line up. A quick sale is great, but it is no good if you don’t have somewhere to move to come settlement date.
Pricing a house in a buoyant property market
On top of all these complications it is also difficult to price a house when the market is moving rapidly. What is a good price today might not look so great in three months’ time. However, despite all the talk of excited markets and rising prices, the only measure of a good deal is how it works for the parties involved. Don’t let other people’s expectations and opinions force you into a deal that does not suit you.
Take the time to get it right
Balancing the competing demands of keeping a sale and getting a purchase is stressful and complicated. Even if there is pressure to make a decision, take the time you need and get it right.