One interesting facet of my work is learning from other professionals in my network. I often cross paths with lawyers, accountants, real estate agents etc and when I do, I take the opportunity to learn what I can about their view of the world. Often my clients will ask questions that aren’t in my field of expertise, so it is great to be able to share what I know and to connect my clients to other experts.
I caught up recently with Hamada Alameddine of BuyerX. Hamada is a buyer’s agent specialising in Sydney’s inner west and is a wealth of knowledge and advice on buying and on property in general. Buyers agents have become an important resource for many buyers who are looking to save time and money on a property purchase. Hamada was kind enough to answer some questions for me and to share his insights.
Is trying to time your entry into the market possible? And does it even matter?
Harv Eker famously said: ““Don’t wait to buy real estate, buy real estate and wait”.
Timing the market is nearly impossible, by the time you think you have timed it right you’re more than likely behind. The best time to buy is when you’re financially comfortable and have enough cash flow.
If the property you’re buying is for long term primary residence the time you own it will likely show appreciation because if we look back historically, the data will show us that property will grow in value over 10-15-20 years.
For investment purposes, you need to make sure you’re buying with the a few key fundamentals guiding you. Buy close to public transport, schools, shops and other amenities. Vacancy rates is also a great indicator as to what the property market is doing.
In short, timing the market is irrelevant but being in the market long term is key!
How long does it typically take for someone to find and buy a property?
Prior to engaging me as a buyer’s agent, on average my clients have been searching for a property for over 4 months. Some clients have been at it for well over 12 months.
On average it takes me 4-8 weeks to find the ideal home for my clients. There are of course instances when we identify the right property in less time. It’s is really important for me to understand exactly what my clients are looking for so I can then guide them in the right direction. I am also able to take non-emotional approach to help clients see the home for what is and not be swept away by the pretty shiny bits!
Most people take a few bites of the cherry because they don't have the experience to identify a property’s true value: they are being guided solely by what the sales agent is pushing. By identifying what they are after, understanding the non-negotiable aspects of their future home and the aspects clients are willing to be flexible on, I am able to weed out the homes that aren’t suitable ensuring we are keeping our eye on their prize.
Auction or private treaty – which is best?
Private treaty is the best way to buy a property. It somewhat gives the buyer more clarity around price and hence makes negotiations simpler. In the current market (inner west) auctions are absolutely going wild with pent up emotional buyer’s sick of missing out.
What should be your “no compromise” features when looking for a home or an investment?
The price! You need to make sure you can identify what the property is worth; you don’t want to get caught out over-paying.