Ep 30. Why you can’t afford to stop your search now
As 2022 draws to a close, should you stop your property search? In this episode, Michelle explains why now might be the perfect time to buy or sell.
Here’s what you’ll learn from today’s episode:
Why you should keep searching for your ideal property even this close to Christmas
Why agents want to sell properties before the end of the year
Why it’s important to get on agents mailing lists
How important is it to get your pre-approval ready before 2023
Speakers in today’s episode:
Michelle May - Michelle May Buyers Agents
Follow Us:
Enjoy the show?
Don’t miss an episode, follow via iTunes. If you like it, please leave a review!
Or, find us on the podcast app of your choice, such as Spotify.
This podcast has been produced and edited by Snappystreet Creative
Please note that any views or opinions presented in this podcast are solely those of the speakers, and do not necessarily represent those of any business. These views and opinions are general in nature, and do not take account of your personal objectives, financial situation and needs. Please consider whether it applies in your circumstances and seek professional advice wherever appropriate.
Listen to the Episode Now
VIEW TRANSCRIPT
Hi, and welcome to another episode of the Buy Your Side podcast, the property podcast that helps you make smarter property buying decisions. My name is Michelle May, and I am the principal of Michelle May Buyer's Agents. Now I know it's been a while, I am sorry for my absence. We have just been super busy in our business trying to buy properties for clients, talking to new people and time got away from me, so apologies if you've been waiting for another episode to drop. But today we are mid-November and I just wanted to talk to you. If you are in the market currently to buy, what you should be thinking about, and if you are thinking of entering the market next year, maybe some helpful hints to get you started.
So we have got about four, five weeks left till Christmas time. Hoorah! I don't know about you, but this has felt like a very long year, but very short at the same time. I mean, how can it be mid-November already? But there you go. There we are. If you are in the market currently and you're getting despondent and you are thinking of throwing in the towel, can I just tell you, please don't. Don't give up just yet because I know it seems like only a short amount of time, four weeks, five weeks, but this is actually, as buyers agents, when we see the best opportunity for our clients. So if you are in the market on your own, let me just remind you why this is a really good time to keep going and not give up just yet.
Number of reasons. Firstly, there's a lot of people who are feeling just like you. They're fed up, they're over getting burnt, missing out on properties they really love. There is a lack of stock in general anyway. So there is less competition on the ground, which is great. You know, if you've been keeping up with the papers or even from your own experience that competition has been fierce. And that is no longer the case, not as much anyway.
You still have to compete for the good properties. I went to an auction recently and it had been underquoted and there were 15 registered bidders. But in general, we are seeing about 4-6 registered bidders at every good A grade quality auction. So less competition means you've got a higher percentage chance of getting the property to be yours.
But the other thing that I'd like to point out is why you shouldn't be giving up is because like you and everyone else, everyone's tired. But that also means that the vendors are tired and keen to get a deal locked in before Christmas, as much as the agents. Agents are much more motivated to get deals done prior to Christmas because they do not want a property that's for sale to look stale in January, worse even in February, because people will start to question, well, what's wrong with this property? Why hasn't it sold yet? Right? And they want to go and sip those pina coladas on their cruise at Christmas time, knowing that they've cleared their books.
It's very simple human psychology really. But if you are there, buyer pre approval in hand, and you make them a decent offer, the agent's hard pressed not to bring that to the vendor and do a bit of good word in for you, more so than any other time of the year. So bear that in mind as well as obviously, like I mentioned, the vendor wanting to get a deal done before Christmas. You know, celebrating, knowing that they are ready to be able to make their next move.
Another reason why you shouldn't give up just yet, and I hope you have listened to previous episodes and have set yourself up with an email account where you are receiving all the agents listings directly for their database. What you'll notice is that now is the time when agents will be touting a lot more off-markets or pre-market as they should be called, because they have been earmarked to go and start the full marketing campaign usually after Australia Day, so the end of January. But if they can sell it to someone in their database prior to Christmas, they will. So what you'll find is that you'll get an email saying off-market. Well, of course it's being marketed, so it's not off-market, but you get the email saying, “Hey, we've got an open, this property is quietly for sale if you like”. If you are there, you get sort of the exclusive preview and it is the right property, you get first dibs at this property, and that means you won't have to deal with the masses come February.
So again, if you're not in the market, you won't be looking at these opportunities. So I would definitely keep hitting up those agents as well when they call you on Monday or Tuesday to ask you for your feedback of the properties that you did go and see on Saturday because they may well match you with a property that isn't officially on the market as yet.
So I think those are plenty of reasons why you just have to keep going just that little bit longer before the market truly shuts down. The last auction weekend really is Saturday the 17th of December, but, I'm sure there'll be some stragglers on the 24th maybe.
But that's really when you know around the 20th, 21st of December, the market will shut down and agents, solicitors and buyers agents or professionals will take a good break until January. So I suspect most people will be back on deck by around the 9th of January, so nothing really happens during that period of time.
And really, nothing much happens until, like I mentioned, the end of January after Australia Day. So be mindful that there won't be much happening then. And then really what happens typically every year people have had a break, they're all fresh off their holidays, the kids are back at school, and they go, “Right, this is my time to buy”. And what we typically see is that clearance rates are very high come February, March, and then you get the market moving again until Easter time, after which it will slow down into winter.
So, if you don't buy before Christmas, just be prepared that there will be more competition in the new year for those buyers who've taken that well deserved break.
So that's some advice for those of you that are currently in the market, if you are not currently in the market, but you're thinking about starting your property journey in the new year, can I just advise you to get your pre-approval done this side of Christmas, and I'll tell you why. The reason for that is because getting a pre-approval done is a bit of an arduous process in most cases, depending on your type of employment and your credit history. This can take quite a few number weeks. It also depends on the quality of your broker. I have to add, not all brokers are made equal and they can really drag the process on if they don't really know what they're doing. But because everyone's going to be taking a break around Christmas, January, school summer holidays, everyone will be thinking the same thing as you, “Oh, I'll just do it in January, February”. Right?
Now the banks, who have to go through these pre-approvals and the brokers, they'll be working with skeleton staff, so if you get your pre-approval in this side of Christmas, it means that you'll have a really good idea before the market really starts up again in earnest, and you can do all that research now, maybe even go to an inspection or two, just follow the campaign and see where that property ends up selling for, because the more that you can do your preliminary research prior to Christmas, that means you can have a laser focus when the market starts up again in February.
So I would not recommend waiting until next year, get the preapproval done. Now it usually lasts three months and then just gets extended when that three months rolls around. Right? Get it done. Get yourself prepared because, then it'll stand you in good stead come the new year. If you haven't even found something already this side of the year.
I wish you all the best of luck. If you're finding these episodes helpful and you keep coming back to me and listening for more. Well, first of all, thank you. Can you give me a review on whichever platform you're listening to on this? Can you give me a like and a follow on, the Buy Your Side Instagram page, but also I'm doing TikToks now. I mean, not voluntarily, I have to admit. But Allysha, my Business Manager, makes me do these TikToks and also Reels on Instagram, so they are very short and snappy bits of tips, hints and information about how you can make smarter property buying decisions. So hit me up on Buy Your Side on TikTok or on Instagram and give me a like, a follow. I would really appreciate it.
Hope this was helpful. I'll be back soon. Take care.