Originally posted: January 14, 2016 11:00pm

Author: Christine de Silva News Corp Australia Network

Property Investment guru Chris Gray

REAL estate will be a whole new game in 2016 and buyers stand to be the winners, according to property investment guru Chris Gray.

“The 2016 property market presents a different ball game for buyers and sellers compared to 2015,” the chief executive of buyers’ agency Your Empire said.

“Confidence in the market is a lot lower than what it was last year and clearance rates have reduced in most areas and price ranges.”

This put buyers in the box seat.

“There is more opportunity for buyers to make a good purchase in 2016, with agents and vendors less confident,” Mr Gray said.

But he said competition would remain hot for great properties in great locations.

“Good properties will always sell well and it might still be hard to get a bargain on a sought-after property,” he said.

See Chris Gray’s top tips for buyers and sellers:

TOP FIVE TIPS FOR BUYERS

1. Choose property that will grow in value

Properties close to the CBD, leisure facilities, schools, public transport and beaches are always a good bet since they are more likely to gain value in a good market and less likely to lose value in a down market.

The best properties to purchase are those in reasonable condition or that are able to be upgraded for a reasonable price.

They should have good-sized bedrooms, off-street parking and be positioned away from noise and main roads.

2. Don’t look for perfection

Too many buyers pay a premium for a property in pristine condition.

To get a good deal, try to look for something that hasn’t been well prepared for sale.

Also, time is of the essence. It is possible to get a bargain by simply having a signed contract and deposit a few hours before someone else.

3. Build rapport with real estate agents

Real estate agents can be good business contacts as they can give you a lot of information and assistance.

When you attend an open house, be sure to talk with the agent and try to find out a bit more information about the property.

This can be a great way to find out the inside story. You may find out the vendor has bought another property and is under pressure to complete the deal, meaning they are more open to negotiation and a quick sale at a lower price.

4. Get your finance pre-approved

Buyers can spend months looking for properties only to have their mortgage application knocked back. It all ends up in frustration, which can lead to a reactive decision on the wrong property.

If you get pre-approval for finance and tell your bank or mortgage broker the type of property you want to buy, there should not be any surprises down the track.

5. Get an independent valuation before you buy

Too many buyers can get emotionally involved when buying property, causing them to pay more than the property is worth.

By investing a few hundred dollars on an independent valuation, you can almost guarantee you will never pay too much.

Investing in pest and/or strata inspections before you buy will be worth your while. These give you a clear idea of any extra costs you might need to add to your budget.

TOP FIVE TIPS FOR SELLERS

1. Be realistic and listen to your agent

With market conditions moving back in favour of buyers, you’re probably not going to get the same price as your neighbour did when they sold in 2015, even if your property is better.

When it comes to pricing, follow your agent’s advice. A correctly priced property will have a much better chance of being sold at an optimum figure.

2. Do your own research

Look at other properties that are up for sale and compare your price to theirs and those that have sold in the past couple of weeks. This will give you a good estimate of how much to list your property for.

3. Focus on presentation

Good properties that are well presented will always sell well.

Ensure your property’s outdoor living areas and gardens are tidy. Give windows and blinds a clean to let in as much natural light as possible. Hiring furniture can be another great way to finish a room.

4. Optimise property inspection times

Tailor inspection times around the best time of day for your property.

Earlier in the morning is best if you place is normally very hot. Consider midday if your property is in the shade and a bit too cold. Avoid inspections in the afternoon if you get a very hot westerly afternoon sun.

5. Consider renovating

Renovations can create instant appeal and equity. A quick low-fuss paint job, fresh carpet, new curtains or blinds, and replacing kitchen cupboard doors can lift the value of your home.

For every dollar you spend on renovating you should be aiming to get at least $1 to $2 extra back in the value of your property.