On one hand, high house prices are generally a sign of good things. They are used as an indicator for how the economy is doing; the higher they are, the higher the confidence of consumers and business alike. So high house prices should be welcomed…
… unless you’re trying to buy a house.
If you’re buying in the midst of a housing boom, you can feel like a victim of circumstance. Prices are soaring; there are more buyers than houses; and even offering the asking price might not be enough to secure you a home or an investment property. How on earth are you meant to keep up when the housing bubble is showing no signs of popping?
1) Lower Your Expectations
It’s a rough idea to have to wrap your head around, but yes: you have to lower your expectations about the kind of property you’re buying. It might be losing a bedroom or compromising on the area you want to buy in, but if you want to buy during a boom, it’s probably not going to be the purchase that is your fantasy “dream” home. Compose a list of the things you absolutely must have, and see anything beyond that as a bonus.
2) Don’t Rush
If you see a decent house and you know there’s competition for it, then you might be tempted to rush to a purchase. This can lead to a series of bad decisions; you might decide you can eschew your pre purchase inspection report or offer the first price that pops into your head. These are bad ideas. Yes, it’s a busy housing market, but you still need to do the sensible thing and be smart with any offers you make. This is a big purchase - you have to get it right.
3) Consider Doing More Work
If you had been hoping to buy a home that you were going to just be able to move into or immediately rent out, that might not be possible anymore unless you’re willing to follow the advice in point one. If, however, you make the decision that you can handle more DIY than you originally anticipated having to do, then this could give you substantial savings. Even during boom periods, properties that need a lot of work aren’t going to experience the same boom as those which are newly built or in excellent condition. By accepting there might be some renovating in your future, you could bring the purchase price right down.
4) Get To Know Local Agents
Talk to local agents and those involved in real estate in the areas you want to buy. Be friendly. Pop into the office with some pastries if you really want to make an impression. What you’re trying to do is make sure you stay at the top of their minds, so you’ll be the first to be called if a house that might be suitable comes onto the market. It never hurts to build relationships in the local community, either; someone might know someone who plans to sell but hasn’t listed their house yet. So spend some time at local functions so you can keep your ear to the ground for a good deal.
