Diamond in the Rough: Tips for Identifying Hidden Gems with Hot Property Buyers Agency.
As Warren Buffet said “Be greedy when other’s are fearful!”. The recent decline in Brisbane housing prices has encouraged some smart buyers — including real estate investors — to take the plunge, ignore the media and move forward with purchasing property.
And we reckon it’s a wise move to make. Houses in Brisbane are a bit more affordable than they have been in the last couple of years. However, there’s still a limited supply available, which means buyers have to be strategic when shopping for their next property.
In this blog we break down a series of steps investors can take to find hidden gems in the Brisbane real estate market and land their next dream property.
Step 1: Work with a buyer’s agent
Now — obviously we’re a little biased here, but the numbers don’t lie. Even if you have experience as a property investor, it’s still a good idea to hire a buyer’s agent.
A buyer’s agent can help you navigate the Brisbane real estate market and point you in the direction of up-and-coming neighbourhoods you might not have known about otherwise.
But it’s not just about getting results, it’s also about saving you a LOT of time in the process so you can focus on what you do best.
The right Brisbane buyers agent can offer expert opinions on different neighbourhoods to help you find a property that aligns with your long-term needs and goals, and help shave off extra dollars during the negotiation process.
Step 2: Understand the characteristics of a good property
It’s easy to get hung up on the aesthetics of a property. Keep in mind, though, that the way a house looks isn’t the only thing that matters.
Some houses might look great on the outside but have dozens of expensive problems on the inside. Conversely, some homes might seem a bit rundown at first but have solid bones.
Don’t write off a property just because it doesn’t look as nice as you’d like. Walk inside and take a look around.
Your buyer’s agent can also help you evaluate different properties, identify specific problems, and get an idea of how much they’ll cost to address.
Step 3: Always Go “One Over”
Is there a specific street in a neighbourhood that many buyers seem to be focusing on? If so, go “one over” and look at the next street.
You might see properties on that street that are just as promising but not as expensive. Sellers on the “second-best” street might also be more willing to negotiate, meaning you’ll get a better value.
The same rule also applies to suburbs. Instead of insisting that you live in the current hottest suburb, consider going one over and looking at nearby areas.
Step 4: If You See Something You Like, Ask
A house might not have a “For Sale” sign in front. However, that doesn’t mean the owners are entirely opposed to selling.
Some people might be considering putting their property up for sale but just haven’t pulled the trigger yet. If they find out that a motivated buyer like you is interested in purchasing their home, that might be the push they need to go ahead and move forward with the selling process.
Remember that it never hurts to ask. After all, the worst thing they can say is, “No.”
Step 5: Focus on Infrastructure Support
When choosing a neighbourhood, consider the area’s support of new infrastructure developments.
Are there proposals for improvements to the nearby roads? Are there plans for new schools, hospitals, or shopping centres?
The new infrastructure will increase the appeal of the area — and the value of the neighbourhood’s homes — in the future.
If you want to invest in a property that is more likely to yield significant returns, keep infrastructure in mind.
Step 6: Approach Agents After Auctions
Keeping an eye on auctions can help you land properties that might have been out of your budget otherwise.
Say an auction just occurred, and the seller didn’t receive any offers. In this case, they have limited options and need to sell their property as soon as possible.
This is the perfect opportunity for you to swoop in and deliver a low (but still reasonable) offer. Remember, if your offer is too low, the seller might be insulted and reject it, so don’t push your luck too much.
Step 7: Look for Older Listings
Generally, the longer a property has been on the market, the more negotiating power you have as a buyer.
The seller likely needs to get out of their house as soon as possible — they might need to move to start a new job or sell the house so they can put the profits toward a downpayment on a new property, for example.
Because of their position, these sellers are often more open to accepting lower offers or making concessions that benefit you as a buyer (such as agreeing to leave items behind or make certain repairs).
Step 8: Connect with Private Sellers
Private sellers (people who are handling the sale themselves rather than working with an agent) often advertise their properties on classified sites like Gumtree or in the local newspaper.
Keep an eye on these less popular platforms so you can jump on privately sold properties as soon as they become available.
Working with a private seller may mean you have less competition since fewer people know the property is for sale. They may also be more open to negotiating (or even unaware of their property’s actual value) and accepting lower offers.
Find a Diamond in the Rough Today
When you’re searching for property in the Brisbane real estate market, it can be tricky to find the right home for your needs — but if you use the tips we’ve laid out here, you can increase your changes of finding a hidden gym.
Of all the tips mentioned in this guide, one of the most important ones is to work with a buyer’s agent. They can help you evaluate homes, understand their potential, and feel confident you’re making a wise investment. At the end of the day you’ll have a better result and more time in your pocket.
Are you ready to start the hunt for your next property? If so, Hot Property can help. Reach out today to schedule a consultation with one of our experienced advisors.
Find Your Perfect Investment Property in Brisbane Today, With Hot Property Buyers Agency.
If you're looking to find your next investment property, get in touch with our team today. We can help you find the property, secure it for a great price, and even manage and plan value-adding renovations to maximise your returns.