Tips for buying property in a cooling Perth market
The biggest mistake Perth property buyers can make now is buying as though the market is still booming, or holding back because they think they will get a better deal later.
Conditions have changed. Buyers have more choice, more time and more negotiating power than they have had for years.
That does not mean buying has suddenly become easy. It means the way you buy needs to change.
1. Stop buying with boom-market habits
For several years, buying in Perth often meant making decisions at speed. Buyers had little time to think, negotiate or compare alternatives, and many became used to acting quickly simply to stay in the running.
There is less reason to do that now.
Take the time to decide whether the property really suits you. Ask the questions you need to ask. Investigate anything that concerns you and make sure you are comfortable before committing.
2. Use the extra time to make a better decision
Properties are generally staying on the market a little longer than they were during Perth’s hottest period, and that gives buyers more breathing room.
Use it well.
You may have time for another inspection. You can think properly about whether the layout will work for you, investigate defects or concerns, look more closely at renovation or improvement costs and complete the appropriate due diligence before becoming emotionally committed.
For home buyers particularly, this matters. The excitement of securing a property disappears quickly. The location, layout, condition and compromises are what you will live with afterwards.
But use that extra time before you make your decision. Once you have done your homework, know the property is right for you and decide you want to buy it, act quickly. A cooler market gives you more breathing room, but it does not mean a good property will wait for you.
3. Know what the property is worth before you negotiate
This is particularly important in the current market because seller expectations are mixed.
Some sellers have adjusted to cooler conditions and are pricing their properties realistically.
Others are still hoping for the sort of prices that were achievable when the market was much hotter. And there will always be properties priced keenly because the seller wants to attract buyers quickly.
That makes knowing what the property is worth critical.
If a property is already very well priced, offering too little can mean losing a genuine buying opportunity. At the other extreme, an overpriced property may be negotiated down substantially and still leave you paying too much.
The important thing is not how much you negotiate off the asking price. It is what you ultimately pay.
Look at what genuinely comparable properties have been selling for and use that evidence to guide your offer. The aim is to negotiate the best possible price, never paying more than the evidence shows the property is worth or more than you can comfortably afford.
A few practical negotiating principles can also help:
- Negotiate each property according to its price, the seller’s position and the circumstances of the sale rather than using the same approach every time.
- Do not bid against yourself by increasing your offer without good reason.
- Price is not the only part of an offer that can be negotiated. Settlement timing, deposit and conditions can also play a part.
- A large reduction from the asking price does not necessarily mean you have bought well. What matters is whether the final price represents good buying based on comparable sales and the property itself.
4. Reconsider conditions you may have sacrificed in a hotter market
During Perth’s most competitive period, buyers sometimes shortened timeframes or gave up conditions because they felt it was necessary to make their offer more attractive.
With buyers now having more negotiating power, there may be more opportunity to include the conditions you need to protect yourself.
That does not mean loading an offer with unnecessary conditions. It means no longer assuming sensible protections automatically have to be sacrificed to buy the property.
5. Do not let waiting become the strategy
We sometimes see buyers decide to wait because they believe they will get a better deal later.
Six months passes. Then a year.
Eventually the market has changed again. Their budget may be much the same, but what that budget can buy has changed considerably.
The home that may once have been within reach can now mean buying something smaller, moving further away or accepting compromises that would not previously have been necessary.
The point is not to rush into buying. It is to recognise when the right property at the right price is in front of you and be prepared to act.
6. Change your strategy as the market changes
In the hottest part of Perth’s market, speed was often one of a buyer’s greatest advantages.
In today’s cooler conditions, the advantage is shifting towards better selection, better information, patience and stronger negotiation.
But speed still matters at the right moment.
Take the time to inspect properly, investigate the property, understand what it is worth and work out how you want to approach the negotiation. Then, once you are satisfied it is the property you want, put your strategy into action promptly.
The benefit of a cooler market is not simply having more time. It is having more opportunity to make a well-informed decision and then act decisively when the right property comes along.
Make the changed market work in your favour
Buying in a cooler Perth market can give you more room to think, compare and negotiate, but making the most of that opportunity still depends on knowing which property to pursue, what it is worth and how strongly to negotiate.
That is where experienced buyer representation can make a real difference. At Property Wizards, we help buyers assess properties, appraise what a property is genuinely worth in the current market, work out the best buying strategy and negotiate towards the best possible outcome.
If you are planning to buy a home or investment property in Perth and would like to talk through how to approach the current market, arrange a private conversation with Property Wizards.
Or tell us what you are looking for and where you are in your property search through our Getting Started form.
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Established in 2004, Property Wizards works with local, interstate and overseas home and investment buyers seeking to buy property in the greater Perth metropolitan area. Property Wizards takes away the stress of buying property and saves you time and money. Regardless of market conditions, our research, knowledge, and access to silent sales means we find and negotiate properties with potential to outperform the market in capital growth and rental returns. Importantly, we provide home buyers and property investors with the same level of representation that property sellers have benefited from for years.
