How to Overcome your Blind Spots in the Sydney Property Market
“For the same reason we can’t tickle ourselves, we can’t see our own blind spots.”
I had a lovely couple recommended to me by a real estate agent in Sydney’s Inner West. These guys started their property journey with a tiny house in Erskineville.
As the market started rising they thought it might be time for an upgrade. They have two beautiful little girls and their house was literally bursting at the seams.
When I met them their search was quite broad. They were looking in any suburb that could get Flynn, the dad, home within a 45 mins commute. We were looking at the Lower North Shore, Mascot, Botany and the Inner West. Since they had been bringing the girls up in the Inner West they definitely had a soft spot for it.
The search continued for a couple of months, I kept seeing a property come up in Dulwich Hill that I thought looked overpriced, it was very unattractive on face value. If you are busy with life and you see an ugly property it is quite easy not to go through it especially if on face value it seems expensive.
This one was painted bright blue, was overpriced and my clients had seen it online but had discounted it due to the cosmetic appearance of it. I went through it. It was a beautiful bungalow that had been bastardized. The paint job was all wrong, there were bars on the window, the tiles were naff and there was only one bathroom.
When I reported back to Flynn and May that this was a hidden gem under an ugly blue facade they were happy to come and inspect it. As we walked through the property, I talked about my vision and showed them references. They understood what I was talking about and realized the potential. I had recently just helped some other clients sell not too far away for $1.75M in a worse street than this so I felt we were onto something! The price guide for this property was $1.3M, however when I did my pricing this property came under this price guide. Accurate pricing is so important as my clients had assumed the property was worth more than $1.3M it had been quoted.
In planning, I got a designer and builder to come through the property so Flynn and May would be ready to renovate if they purchased this property. Once we’d agreed on a strategy I started to work my magic.
To begin with, I have to work on my negotiation strategy, which involves categorizing the agent. It’s not a personal thing. In this instance, the agent selling the property would be in the category of “lazy agent”. So it’s important that I do all the running around and make it “easy” for the agent so when it comes to the crunch we buy well.
So, I put the offer on a contract at $1,251,000 well beneath their quoted price of $1.3+m. The agent had his work cut out for him as this was a divorce and the both parties were not convinced that this was the best offer for them so they sat on it over the weekend. I then increased my offer by $2,000 and I put the deal together – the feedback from my clients was; firstly, they never would have gone through the home and secondly, they would have just paid the asking price which was $47K more.
They ended up completing the works to the property for approximately $200,000 all up and recently had their property valued at $1,850,000. It really does help to use a professional third party to get a potentially emotional job done.
If you are feeling emotional about your property search,call Brooke Flint from Flint Property on 0425 221 226.