The best kind of moral support

We get to enjoy so many exciting journeys with our clients. Many come to us for assistance because the task of finding a home can feel daunting or overwhelming. A large proportion of our clients are first time buyers, yet even for those who are upgrading, the enormity of the task can often trigger these same feelings.

Almost all of our buyer clients have their own support-base, cheering them on from the sidelines and often playing a vital role in assisting them. For some, they have financial support from parents, siblings and close friends. Others have great buddies who are keen to be a reliable sounding board or their voice of reason.

Moral support comes in many ways, but occasionally we witness the best of intentions making a negative impact. There are some great ways that friends and family can be helpful, and this blog aims to distill the difference between help and hindrance.

The strategy phase is the first task that comes to mind.

Many buyers turn to their support-base for hints and tips on where to geographically focus their search. A friend or family member who is familiar with great areas that the buyer may not have considered can be a very valuable supporter. We’ve met so many buyers who have managed to find a suburb that feels like ‘home’ thanks to a friend or family member introducing them to the area. Being able to get the local ‘run-down’ from someone who sees the potential for their loved one to find a great property is one of the best tips a buyer can get. They know the good spots, the cafes, the public transport, and most importantly the suburb character.

It’s when they don’t know the pricing that things can get challenging.

Plenty of well-meaning helpers have targeted particular suburbs for their loved-one, but instead of delivering viable options, the dwellings of interest are all selling above the budget. In a moving market, the danger is that the buyer could be wasting valuable time looking for a needle in a haystack, all the while their affordable areas are exhibiting fast-paced capital growth.

They could potentially price themselves out of the very market they should be focusing on while chasing a mirage in a different area.

One of the best forms of help we’ve seen relates to accountability-partnering. In other words, a helper who understands what the buyer wants in a home, recognises what options are within their budget, (this is easy enough to do by following these steps), is acutely aware of the desired timeframe, and is comfortable enough to speak openly and honestly when asked.

They know their loved-one, and they respect their loved-one’s home criteria. Best of all, they know how best to communicate with them.

The best thing about the accountability partner is that they can remain objective and energetic. They don’t let their own preferences get in the way, they don’t tire of Saturday after Saturday at open-for-inspections, and they question the criteria list and the properties in question when a potential option comes up. They help the buyer plan, they help them research and they help them talk to the agents. We’ve seen some fabulous accountability partnerships over the years.

Finding a friend or family member who can do this is precious.

The offer and negotiation process is another step in the journey that often has input from a support crew. Unfortunately though, most people only have experienced a handful of property purchases themselves, if that. Their frame of reference is often limited to a specific acquisition or experience and it may have also been in a different set of market conditions. Campaign types and methods of sale vary greatly in any one city, let alone a different city. Some of the most dire mistakes we’ve seen buyers make relate to this step in the process, and unfortunately it is all too common for the mistake to be based on bad advice.

From cheeky low-ball offers to bluffs at the wrong time, buyers risk missing out on a property for a price that was fair and reasonable because of an ill-conceived tactical manoeuvre.

Agent distrust from a former negative encounter can sometimes lead a well-meaning supporter to suggest such a move. If a helper has has a bad past experience with a negotiation or auction, they may be inclined to carry that skepticism with them, and their advice could be dangerous. We’ve witnessed a lot of these mistakes, including;

• Getting pricing analysis wrong, (or worse still, guessing a ;price) and encouraging the buyer to set an unrealistic price limit,
• Assuming the ‘other’ buyer who made the offer is an agent bluff and missing out on th property altogether,
• Making a late bid after the hammer has fallen at auction,
• Telling the buyer to advise the agent that their offer is their last and final, (when it’s not),
• Comparing the subject property to a non-comparable sale, or selecting a comparable property from a non-comparable set of market conditions, ie. refusal to accept that the market has moved markedly since the last sale date,
• Suggesting to the buyer that they should only persist with verbal offers and offering a general unwillingness to document a formal offer on a contract when requested to do so, (this hot tip disadvantages many buyers), and
• Applying an over-cautious level of protectionism by suggesting the buyer include a finance clause when they already have credit assessed pre-approval. Unfortunately in a strong market, those who are prepared to make unconditional offers will almost always have the upper hand.

There are many ways that support-crews can offer valuable assistance, but knowing the help that isn’t helpful is vital.