Downsizing in a hot Sydney property market
An exciting brief for us recently involved the searching, selecting and securing of a home for a lovely couple who are downsizing from the North Shore.
They had already sold their property in Cremorne at the top of the market and were feeling very nervous about the fact that they may not have a home for Christmas. My advice to them was to get a rental property so that they would not stress too much about the situation and simultaneously we could do their search. Even though the media is reporting signs of cooling – this part of the Sydney property market was still hot.
Their original brief was to find something on the Lower North Shore that had a relaxing feel about it, close to shops, transport and low maintenance for about $3million. I find many down-sizers struggle with the idea of actually downsizing, as it is the first time in their lives that they start thinking about going smaller in a property. These clients were no different – I gently remind my clients that downsizing is about cashing in your space for $$$.
By scouring the market and using my agent contacts I looked through plenty of off market property and also on market. In the Lower North Shore in the $3,000,000 range prices were still strong.
The key to working successfully with a couple is to ensure that they both feel heard and that they get what they want out of this purchase, whilst using my contacts to find the most suitable property.
I got wind of a property that sounded perfect before it came to market. After I had been through I thought it ticked a lot of boxes and it would keep them in the same suburb! I was very excited about it for my clients and once they saw it they were onboard!
My task now was going to be to secure the property prior to auction for a price that was within the range I was recommending. The other problem I had was negotiating a simultaneous settlement. Which means negotiating so that their property settles on the same day as the one that they want to purchase. This ensures that money can be paid without bridging finance. We had all of our pricing research and other due diligence completed within days.
My connections in the industry are vast and it just so happens that I had sold this agent’s mother’s house to her many years ago.
I really pushed for the pre-auction bids. If you are going down this road you need to ensure that you ask the agent exactly how he deals with multiple buyers. Does he disclose offers, is it offers on contracts, is there a deadline? Based on the agents response I determine my next steps – being agile as a property buyer is key.
In this scenario the agent had set a deadline. I listened to what the agent had said and came in with my contract – we bought it by a few thousand dollars more than the other buyer! And my clients got their simultaneous settlement.
A few words from my client:
“You gained our trust from our first meeting with your very open style and your knowledge of the property purchase process. As we worked together it became clear that you have a deep personal commitment to fulfilling your commitment to your clients. You were always available, on the mark with your insights and on time. It’s who you are.
Words cannot express how happy we are with the process and outcome you made happen during our property search and purchase.
We will gladly sing praises to anyone who wishes a first-hand success story about your work. Many, many thanks for your efforts. We are over the moon with our new home.”
Jim and Lynne
We wish our lovely clients the happiest of times in there new home!