From dealing with thousands of buyers in the process of looking for properties, I have noticed that there are certain phases that a buyer will go through. How long a buyer will stay in any of the phases is completely up to them, it really depends on how long they stay in denial for!
It’s important to be aware of these phases, especially the Danger Phase, to know where you are tracking and what you need to do to move forward.
This is right at the start when a buyer is first looking and is really common for first home buyers. There is so much to know about, things to do and things to look out for, but they are not even aware of it.
It is quiet common for investor to be in this phase, or those looking for do-up properties. People that have owned properties before and think that investing is just the same as ownership and that you just do the same.
Some people will take advantage of buyers in this stage, so tread with caution.
How to move on: Most buyers don’t stay in this phase for very long at all – all it takes is a family member or day of open homes and a few questions to sort this out.
Information Seeking Phase
It has become apparent that the buyer now knows that they don’t know much about buying properties and that there are things that they need to learn about, and fast.
This is a good stage and there is countless ways that people seek information. It is important that the information is sourced from a correct source though, particularly with investment properties – there are many companies claiming to be experts on this matter. Just keep in mind that if it’s too good to be true, it probably is.
How to move on: Seek advice from a professional on what you need to do, or read my Home Buyers Education course.
This is when buyers first go out looking they know what they want and they are out looking for it, only, it either doesn’t exist at all or it just doesn’t exist in their price range.
Normally it is the later and people are looking anywhere from $50-200K above their price range.
How to move on: Once you have completed your buyers wish list and know what you ideally want, get the last 6-12 months of sales for the area that you would ideally like to live in and drive around looking and what has sold and for what price.
Also Google the addresses. This will give you an idea on what your money will buy you in the area that you want to live in. Often a compromise needs to be made, either increase your budget, change your wish list or change the area that you are looking in.
Danger Phase (also known as Frustrated Phase)
This is when a buyer has been out looking for properties for a while and has missed out on 1 or more properties, either at auction or under multiple offer situation and they are becoming increasingly frustrated that they are missing out.
This phase makes me nervous because emotions are taking over and mistakes can be made. Often this is where a buyer will pay well over market value for a property and buyers remorse may kick in later on, or they will rush into a property recklessly and not do the proper due diligence i.e. thorough building inspections or checking of council files.
How to move on: Be patient. If you miss out on a property, don’t worry other properties will come up. There are plenty of houses out there.
This is when a buyer knows everything that they need to know- they have their finances arranged; they know the due diligence they need to do and can do so quickly; they know what they want and need from a property; and they can find their ideal property in an area that is inside their budget.
How to move on: Be patient and strike fast when the right property comes up. Be in regular communication with your Real Estate Agents so that when a property comes up that fits your needs they think of you first.
Once you have assessed which phase you are in currently, take the steps to move forward. If you are confused you can call me to discuss it more and I can give you some personalised help. You can reach me on 09 481 0648.