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The current Perth Property Market: A Seller’s dream
The Perth property market is currently experiencing a surge in activity, with properties being snapped up at an astonishing rate. According to Heath Bassett and Simon Deering, co-founders of You&Me Personalised Property Services, the current market conditions are heavily favoring sellers, making it challenging for buyers to secure their dream homes. This fast-paced market is driven by high demand and limited supply, creating a sense of urgency among buyers.
Average Days on Market: 8 to 9 Days
One of the most striking indicators of the market’s heat is the average days on market for properties in Perth. Currently, properties are selling within 8 to 9 days. This means that if a property is listed on a Monday or Tuesday, there’s a high probability it will be sold before the weekend. If it doesn’t sell on the weekend, it’s likely to be gone by Monday morning. This rapid turnover rate is a testament to the intense competition among buyers and the efficiency of the local real estate market.
The Hot Price Range: $500,000 to $700,000
The price bracket seeing the most activity is between $500,000 and $700,000. Properties within this range are being “snaffled up” quickly, leaving buyers with limited time to make decisions. This price range is particularly popular among first-time homebuyers, young families, and investors looking to capitalize on the strong rental market. The high demand for properties in this price range is driven by a combination of affordability, desirable locations, and the potential for capital growth.
The Challenges Faced by Average Buyers
For the average buyer, the current market conditions can be daunting. Many start their property search on popular real estate websites, such as realestate.com.au or domain.com.au. They find an open home advertised for Saturday, attend the open house, and speak with the agent. However, the agent may not provide a clear price guide, instead encouraging buyers to “put their best price forward.” This leaves buyers uncertain about what to offer and how to proceed. Additionally, buyers often find themselves competing with dozens of other interested parties, making it difficult to stand out and secure their desired property.
Competing in a Crowded Market
Buyers are often competing with up to 40 other people for the same property. Without a clear understanding of the right price point, they’re at a significant disadvantage. If a buyer decides to make an offer on Monday after attending an open house on Saturday, they may find that the property is already under offer or sold. This intense competition can lead to emotional decision-making and buyers overpaying for properties in fear of missing out. It’s crucial for buyers to remain level-headed and seek professional advice in this competitive market effectively.
The Key to Success: Fast Decision Making
To have the best chance of securing a property in Perth’s competitive market, buyers need to be prepared to make a decision within 1 to 2 hours of viewing the property. This requires several key elements:
- Professional Representation: Working with experienced buyer’s agents or property advisors who understand the local market and can provide guidance throughout the process. These professionals can help buyers identify suitable properties, negotiate effectively, and make informed decisions quickly.
- Comprehensive Reports: Having access to property reports, valuations, and other essential information that enables buyers to make informed decisions quickly. These reports provide insights into the property’s condition, potential for growth, and comparative market analysis.
- Confidence in Research: Conducting thorough research on the property, the local area, and recent sales to ensure a clear understanding of the property’s value and potential. This research should include an analysis of market trends, infrastructure developments, and demographic shifts that may impact the property’s long-term value.
The Offer Process
In Western Australia, selling agents can present multiple binding offers simultaneously. For this, buyers can submit an “Intent to Offer,” which is a non-binding expression of interest. This allows agents to present multiple offers to their clients and negotiate back and forth between the top 2 or 3 offers until a final decision is made. Once an offer is accepted, a formal, binding offer is then submitted. It’s essential for buyers to understand this process and work closely with their professional representatives to ensure their offers are competitive and submitted in a timely manner.
The Importance of Market Knowledge and Professional Support
When buyer’s agents are playing a huge role
Understanding the nuances of the Perth property market is critical for buyers who want to secure their desired property. Factors such as market pressure, agent-buyer relationships, and the ability to accurately assess a property’s value can significantly impact the outcome of a property transaction. Without the right knowledge, support, and guidance, buyers risk overpaying for a property or missing out on opportunities altogether. In a market where prices can vary by $50,000 to $100,000, having professional representation and access to reliable information is crucial.
Professional property advisors, such as those at You&Me Personalised Property Services, have the expertise and market insights needed to guide buyers through the complex process of purchasing a property in Perth. They can help buyers identify properties that align with their goals, negotiate effectively with agents, and make informed decisions based on thorough research and analysis.
Making Informed Decisions in the Perth Property Market
To succeed in Perth’s competitive property market, buyers must arm themselves with knowledge, seek expert advice, and be prepared to act decisively when the right opportunity arises. By understanding the market conditions, working with experienced professionals, and having a clear strategy in place, buyers can increase their chances of securing their dream home or investment property in this fast-paced market.
Do you need help for your property purchase in Perth?
The key to success in Perth’s property market lies in being well-informed, well-prepared, and well-supported. By leveraging the expertise of professional property advisors and conducting thorough research, buyers can make confident, informed decisions that set them up for long-term success in this dynamic and rewarding market.
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Our buyer’s agents have the expertise you need to help you buy the right property at the right price (and we also have the You&Me Guarantee, which will you give peace of mind when buying with us).
Contact us today to discuss how we can help you buy a home in Perth, Western Australia.
Our Perth Buyer’s Agency
Buyer's Agent, Co-Founder at You&Me Personalised Property Services