With many people going away on holidays or settling in for a relaxing Christmas period, there tends to be a mass slowdown in house buying activity at the end of December and throughout January. So, if you’re using the Christmas holidays to try to search for your first or next home, then there could be opportunity for you to secure a great deal while the competition is low.
To take advantage of the quiet time in the market, here are our top 5 tips:
1. Get your finances sorted
Before you start your property search, it’s essential to have a clear understanding of your financial position. Determine how much you can borrow and what you can comfortably afford. Speak with your bank or a mortgage broker to get pre-approval for a loan. This step not only gives you a realistic budget but also puts you in a stronger position when making an offer. Remember, financial institutions may have limited operations during the holidays, so start this process early.
2. Navigate the holiday market wisely
While the holiday season may offer less competition in the property market, it’s important to remember that the entire process can be slower. Banks, solicitors, lenders, and brokers often close their offices or operate with reduced hours during this time. Be prepared for potential delays and resist the urge to rush into decisions without proper advice. The quieter market can be advantageous, but patience and diligence are still important.
3. Insist on realistic timelines
When negotiating contract terms, avoid agreeing to short settlement periods. Given the holiday closures and reduced operations of key services, it’s advisable to push for a settlement period of no less than 45 days. If your purchase is subject to finance, consider extending this period even further. Remember, loan approvals and other essential processes may take longer due to public holidays and staff leave. A longer timeline ensures you have adequate time to fulfill all conditions without unnecessary stress.
4. Get your team ready
If you find a property that ticks all of the boxes and there is an opportunity to negotiate a great price, you want to be ready. This means ensuring your team of professionals e.g. mortgage broker, solicitor and inspectors are prepared and available to help. These professionals are often busy over the holiday period helping other purchasers and sellers in time for Christmas or before the New Year ticks over. Or they could be on holidays themselves. So, it is important to manage expectations and make sure your team is available.
It’s a good idea to ensure your lawyer is aware that you are looking and find out when they will be available during this period to advise you before you sign any documents. They should thoroughly examine the Contract of Sale and the Section 32 Statement (Vendor’s Statement) to protect your interests. Don’t let the festive atmosphere rush you into signing without proper legal scrutiny.
5. Stay focused and persistent in your search
The holiday season can be filled with distractions from Christmas parties to family gatherings and year-end activities. However, persistence is key when searching for real estate. It’s a good idea to set alerts on real estate portals to receive daily updates for new listings and dedicate time each week to check in with local agents about any off-market opportunities that may arise. While many buyers may pause their search for the holidays, maintaining your momentum can significantly increase your chances of finding a great deal.
Conclusion
If you are house hunting this season, our Property Team, led by Accredited Property Law Specialist, Renee Legg, would be glad to assist you. Please call us on 9063 0300 or send us an email to discuss with one of our lawyers, or click here to make an appointment.
Author
Sheredyn Legg
Renee Legg
The information provided in this article is for general informational purposes only and is not intended to serve as legal advice. For specific legal concerns, please speak directly with one of our qualified lawyers.
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