50 Not Out - Why you shouldn't buy until you've seen 50 properties
50 properties, NO WAY!
Yes way … it’s the only way to truly know your stuff. You’re talking about dropping hundreds of thousands, maybe millions of dollars on a single home or investment, it’s a huge financial commitment. Product knowledge and understanding market value is crucial in making the right decision and to avoid getting burnt.
Why “50" and not say “10" open homes?
A few years ago, I looked back at the 27 properties I have personally purchased over my adult life, starting at age 21 (I’m 43 now). What I noticed was the level of market research I conducted each time before purchasing, on average inspecting 50+ properties before committing.
The problem for those who don’t take this approach is the old classic line of “love at first sight". It’s so easy for buyers to get carried away emotionally when they see a home that ticks the boxes and then have the blinkers on to block out the world of potential pitfalls, other property options or expert opinions.
Blah blah blah … I want the property, why can’t I just have it.
Sure, you can just have it, but at what price? Are you overpaying? More importantly, what else is out there, how do you truly know you’re getting the right deal on the right property if you have not yet fully opened your eyes to the local market and researched the options available.
Over my 20 years in the industry, I can recall hundreds of times that buyers have been "all in" on a property they first saw, only to miss out - weeks later realising it was fate they missed the first property before then going on to purchase an all together different home or investment.
Knowledge is power & due to the high value decision you’re making when buying, you must ensure you’ve seen a wider choice to close on the right one.
Here is my cheat sheet to fast track this process:
- Focus on 1-2 suburbs max
- Put aside 4-8 weeks to watch the market intensely
- Register at domain / real estate portals online to set up your search criteria
- Track every new listing that is similar to your ideal purchase
- Add the listings straight into the diary / calendar function
- Aim to see 10+ open homes per week
- Watch every auction possible of similar properties in that month
Should you follow my advice, in 4-5 weeks you will have a different take on what styles of property become available to purchase in your desired neighbourhood, what method of sale agents market homes, what price guides equate to as a final sale price and what the buyer depth is based on how many buyers at each auction.
All of a sudden, the 3 bed renovators delight at the top end of your budget that you initially fell in love with, doesn’t match the 4 bed renovated home you can afford locally that is "move in ready" and closer to the shops and kids school.
In some instances a home is irreplaceable and requires you to act sooner than you may like, but they are the very rare occasions. Typically, for most of us, should we miss an opportunity today, another will come along tomorrow.
The leaders of this world surround themselves with great people so they can lean on others for their expert advice to get the ideal outcome faster and with lower risk. Who’s on your team guiding you - are you surrounded by the right people to enhance your buying process?