How To Find The Hidden Property Gems
Buyers often feel starved for choice when it comes to property supply, certainly at the moment with low stock levels across Melbourne, they’re not entirely wrong…
However, there may be quality options right in front of them that they have overlooked. This is a common buyer response for a few reasons, all of which are largely psychological rather than fundamental reasons not to buy a property.
The fundamentals of a property should never be overlooked, they are the foundation for future capital growth potential and safeguarding your investment. However, if you cave to the standard buyer response to a smelly tenanted property with broken blinds, you may be missing out on a hidden gem!
Here’s four things that will likely turn your competitors off, hence leaving you with an opening to swoop in and pick up your ideal property, even if it may need a little buff and a puff.
Property styling? No thank you!
Scrolling through realestate.com these days is like flicking through the pages of Vogue living, it’s filled with perfectly presented, incredibly styled homes sweetly calling your name. Inviting you in to make it yours. No. Do not be fooled by the incredible work these stylists do. When it comes time to settle and you do your final inspection at the property - bare naked, dusty, cold and empty, the regret of the extra $50k you threw at it on auction day may start to sting your eyes a little. In a sea of perfection, it can be easy to scroll right past those cluttered, daggy, dark, messy pictures that make you question what the vendor was thinking presenting their property like that rather than wondering when the next inspection is. This is a classic buyer response to those properties and almost always results in a lacklustre campaign and a bargain when it eventually sells!
2. Tenanted Property
Tenanted properties often appear lived-in and may not be showcased to their full potential. It can be harder to see yourself living in a property when you can so clearly see others doing so. But if you scale it back and focus on the property from a fundamental perspective, it may be worth considering.
Perhaps there is still 6 months left on the lease and you were really hoping to move in within 3 months. This is a classic scenario that will turn a large portion of owner occupiers off pursuing the property, however savvy buyers will work this to their advantage. Use it as a negotiating tool, it is highly likely to affect the end price and you may be able to buy on a long settlement with ‘vacant possession’. Meaning the current vendor continues on as the landlord and is required to serve the tenants notice to vacate for the end of their lease. Once that notice is served and the tenants know they’ll need to vacate in a few months time, the chances of them counter serving their 14 day notice and you being able to bring settlement forward to an earlier date are high! So you’ve not only purchased at a discount but you also end up getting your ideal settlement date!
3. In need of a facelift?
Rewind to 5 years ago, when ‘renovators delights’ were heaving with interest! Often gaining more momentum than ready to move in options.. But these days it is not so much the case. Even property only needing a cosmetic makeover is being deemed ‘too much work’. There's an overriding perception that it's too hard to find tradespeople and too costly to complete. So dated and daggy properties are often being overlooked and dismissed by the market. This is where, if you have an open mind to see the potential (and a good list of tradespeople like we have).. Light cosmetic works and even bathroom and kitchen renovations can be easily achieved straight after settlement and before you move in.
4. Ghost town? Yes Please!
It is human nature to want what other people want. Competing interest gives buyers social proof that they’re making the right decision. It’s cosy in there with the crowd… and it can feel pretty scary when there’s no one behind you! Walking through a property that passed in a few weeks earlier with only one or two other buyers and a super-keen-to-sell agent on the door feels very different to the opening weekend of an underquoted auction campaign! The former silent and awkward, wondering why no one else wanted to buy it, and the latter heaving with bodies buzzing around wondering how you’re going to beat them all to the prize!
Finding hidden property gems involves looking beyond initial impressions, leveraging overlooked opportunities like tenanted properties and those in need of renovation, and keeping an eye out for less competitive listings. Remember that in a competitive market, these strategies can help you discover valuable property that others may have missed, ultimately making your real estate journey more rewarding.