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Prime holiday times like January can present opportunities for those looking to buy a house, which can translate to lower prices and more flexible conditions for a better buy. 
Holiday periods are definitely slower times in the market cycle, when many people are tied up with vacations and families. 
Fewer buyers mean less competition and the added benefit for buyers to shop around for what suits them best. 
What you also find at this time of year is that many people who have bought in December are more likely to be under pressure to sell in January. 
With fewer people in the marketplace looking, there are more opportunities for astute buyers to get out there and pick up a bargain. 
It doesn’t mean a property will definitely sell for a ridiculously low price, but it can certainly work to your advantage. 
It is particularly important at this time for buyers to understand the market in order to buy at the right price. 
It makes sound financial sense to consult an expert when making what is for many people the most costly investment decision they are ever likely to make. 
Buyers’ agents know the property market better than anyone. 
They have the ability to research the data needed to know what is the right value for the property and to determine what is a bargain and what is not. 
Warwick Brookes is the president of the <a title="Real Estate Buyers Association of Australia" target="_blank" href="https://www.rebaa.com.au/">Real Estate Buyers' Association of Australia</a>
 
 
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Why January can be a good month to buy property

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Agents can often be reticent to provide an accurate valuation of a property they are selling. However, here are four tips for ascertaining how much you should offer.
1. Request the comparable sales data the agent relied upon to determine their opinion of value.  Whilst the agent may refuse your request based on client confidentiality, it has far greater meaning than the irrelevant sales data agents often hand out at inspections.  Confusing? Absolutely!  That is why they are summarised as relevant, not comparable. 
2. Contact the agent’s competition and seek their opinion of what the property is worth.  Most vendors call in at least two agents, so it is logical other agents have presented their sales proposals to the vendor.  What’s in it for the losing agent to discuss values with you?  Goodwill, particularly if you have a house to sell. The prospect of an appraisal is a great trade-off, and the information you get could be crucial. 
3. Ask the question, what does the agent really think the property will sell for?  Don’t ask them in the first week as they will not have had the opportunity to do any buyer follow up. But at the end of the second or third weeks of the advertising campaign (a campaign usually runs for about four weeks) a good agent will know or have a really good idea what the property is going to sell for based on qualifying questions he asks buyers including any offers they received.
Just as an aside, did you know that if you submit an offer in writing to the agent, even if they advise you that the property is going to auction, they must reflect that offer in the price they are quoting, and submit your offer to the vendor.  What frustrates most buyers is the flat line response to the question:  Is there a price the vendor would sell for prior to auction?  You would think that if the vendor was fully informed from the beginning there is a possibility that a sale could be concluded…. 
4. Establishing how much prices exceed the vendors reserve price at auction can provide an important indicator of the final price, the form guide I call it.  Most agents discuss internally how much certain properties sell above the reserve to gauge how much the market is rising. For example, if a house sold for $1 million on a reserve of say $800,000, and the price being quoted was $730,000 plus, then it is possible to predict potential blow outs of other like properties. Be prepared !
Warwick Brookes is the president of the <a target="_blank" title="Real Estate Buyers Association of Australia" href="https://www.rebaa.com.au/">Real Estate Buyers' Association of Australia</a>.
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Four tips for getting an accurate property valuation

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So, the property was passed in and you, yes you are the highest bidder! At that moment, not only are you nervous but you are probably thinking what happens next: Trick or treat? Here are some tips to settle your nerves. 
Traditionally, the amount of property on the market increases significantly during spring in the lead-up before Christmas, and so too does the number of properties that are passed in. Be prepared! 
Unless it is teeming with rain do not follow the agent inside. This is akin to being put in isolation. Even though you have the exclusive rights to negotiate with the vendor, it is critical you stand in a position outside where you can assess whether there is any competition or just family friends who are pretending to be buyers. The impact that perceived pressure can have (not knowing who your competition is or the implied prospect of competition) is a powerful negotiation tool that agents are only too happy to use against you. That aside, standing your ground displays strong body language even though you might be shaking at the knees. 
Now, let the games begin. The first step is to ascertain the reserve price. More often than not the reserve is not the price at which the vendor will ultimately sign the contract but rather the vendor’s authorised or asking price which is usually higher to allow for the negotiations. A good question might be “what is the lowest price the vendor will sell for”.
It is at this point that you will need to decide what your strategy is. This should be based on your own research as to what you estimate the property is worth under low competition and at the upper end when there is intense competition. Just because the property has been passed in does not mean that this is market price, it is simply a price point for further negotiation. The market value is what you and hopefully the vendor have assessed it to be based on comparable sales evidence and in reality, they should be the same. The key is to work within the price range you determined and not waiver from it. 
From my experience, it is almost impossible to conclude a sale unless both parties are willing to negotiate except when the vendor must sell. The extent of any negotiations will depend very much at which end of the price range the property is passed in for. For example, if the price is at the lower end of your range you have more flexibility but never forget that your aim is to minimise the outcome. Clearly, knowing if there is any competition (in waiting) will affect how flexible you are.
Don’t be frightened to say things like, “This is already at the upper end of what I think the property is worth” even if that is not the case. If there are no other buyers in sight and everybody has left except yourself, then minimise the amount you are willing to counter-offer. Don’t fall in to the trap of making the same counter increments as the vendor. Often the agent will say things like “would you meet the vendor halfway”. Consider your position, always deliberate and minimise the outcome. 
Now, just to totally challenge you, consider this. It is a fact that 90% of all communication is conveyed through eye contact and your body language, which puts buyers at a distinct disadvantage compared with the vendor, who has an agent working by his or her side.
As Kenny Rogers once wrote and sang “You got to know when to hold ‘em, know when to fold ‘em, Know when to walk away and know when to run”. Do you have the poker face?
Warwick Brookes is the president of the <a target="_blank" title="Real Estate Buyers Association of Australia" href="https://www.rebaa.com.au/">Real Estate Buyers' Association of Australia</a>.
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What to do if you are the highest bidder for a property that is passed in

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Buyers’ agents emerged as the key players in the finale of the The Block 2011 after only one of the four cottages sold under the hammer.
The Block 2011 auction room was full of buyers agents acting as advocates on behalf of buyers while prospective buyers were scarce.
Buyers agents take the emotion out of buying property. There is no doubt that if The Block 2011 auction room had had more prospective buyers bidding instead of advocates, more of the renovated properties might have sold at auction.
Buyer’s agents know how to play the real estate game. They are qualified real estate professionals who understand exactly where the market is, what a property is worth and they are highly skilled negotiators.
The large majority of people pay an agent to sell their property, yet it is far more uncommon in Australia for people to pay an agent to buy them a property but clearly, buyers are starting to see the advantages of having an independent advocate representing their interests.
Buyer’s agents work exclusively on behalf of property buyers, while the traditional agent works for the seller and is intent on achieving the highest possible price.
Currently there are around 75 to 100 firms around Australia acting exclusively as buyer’s agents, nearly half of those are in New South Wales, compared with just two 10 years ago.
In an increasingly complex marketplace, buyers are starting to see the value of having an independent expert on their side, one who knows exactly how much a property is worth, who can negotiate the best price and terms.
Warwick Brookes is the president of the <a href="https://www.rebaa.com.au/" target="_blank" title="Real Estate Buyers Association of Australia">Real Estate Buyers' Association of Australia</a>.
For expert commentary and analysis on lessons to be learnt from property reality TV, <a href="https://register.propertyobserver.com.au/lights-camera-auction/" target="_blank">download our e-book Lights, Camera, Auction!</a> 
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Warwick Brookes

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