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The Managing Director of Buying Perth Real Estate, Clive Elliott, discusses who is ideally suited to the services of a buying agent, how a buying agency operates, and the cost of engaging us to help you.

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Clive Elliott

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Every home buyer wants to spot a good real estate deal. But most of them have a problem: they don’t know what a good deal is. To find a good real estate deal, you must first know what makes a good real estate deal. You must have a clear definition of what makes a property a good deal.

If you have the right knowledge and criteria, you’ll be able to avoid pitfalls and discern whether a home is a good investment or not. This is important especially if you are buying a home in a highly competitive market. Get ahead of your competition with these tips on how to spot a good real estate deal:
Economic Growth
Look for key indicators in an area such as economic growth and signs of further development. It’s a good economic sign if the population has been increasing throughout the years. If the area has lots of jobs to offer, people will tend to move in to fill those jobs. If there are news about plans on creating more infrastructures for businesses to open up, then it’s a good sign that there are plans to develop that area.
Location and Proximity
When choosing a property, location is probably one of the most important factors. As they say, you can reconstruct or renovate the building but you cannot change the location of your property. Choosing a good neighborhood can have a good impact not only on your lifestyle, but on the value of your home.

Proximity to essential services, your work, or your children’s school is also important. If you plan to live in the home, it’s important to think about your daily life. You wouldn’t want to live somewhere that’s difficult to travel to, that’s far from your friends and family, and from essential services that you might need in case of an emergency.
Cash Flow Potential
One of the factors that investors consider when investing in a property is how much money can they potentially get in return for their investment. Before you even invest in a property, you need to analyze its cash flow potential. Assess how much it is going to cost you and how much it will pay you. Some of the expenses that can impact cash flow are mortgage, homeowners association fees, insurance, utilities, and maintenance. Do you need the value of the property to grow in order for you to achieve your financial goal? If yes, will you be able to sustain the property that long?

Determine if the property’s cash flow potential is enough to cover all the expenses incurred and even give you profit. Ask your experienced buyer’s agent to help you assess the cash flow potential of your target property and if it is aligned with your financial goals for the property.
Condition
Most real estate investors prefer purchasing “habitable” properties. Habitable means within the range of a property that is close to being ready or needs a quick paint job and a property that needs a major renovation. It depends on you on whether or not you will consider a property’s certain condition as a good deal. Most investors prefer a simple property that can be immediately occupied as it poses less risk to the buyer. However, the possibilities to a wrecked property are endless. There can be more opportunities to add value and build a high return for a property if you have the chance to make major improvements.
Competition
After you’ve checked and analyzed the other factors that determine whether a property is a good deal or not, check out the competition. Research about other listings in the area that are similar to your criteria. Ask your experienced buyer’s agent for a list of the properties that have been sold in the past six months and how much they were sold. In most cases, the sale price is different from the listed price as there had been negotiations throughout the buying process. By knowing the sale price of similar properties, you get to have an idea on how much you can negotiate with the seller and assess if the price of the property you are eyeing is a good deal.
Talk to your buyer’s agent about your real estate goals
If you know the criteria of what a good deal is, it will be easier for you to actually find a good deal. In other cases, getting a good deal isn’t solely about the property. Sometimes, you are able to turn a simple deal into a good deal with what you make out of the property. It is all about planning and developing the right investment strategy. Talk to your experienced buyer’s agent about your goals and he will help you come up with the best investment strategy that can lead you to getting a good deal.