If it’s taking more than six months for a buyer to find their home, something is probably wrong

We sometimes meet buyers who have been looking for over a year, in fact some take years. Unless the brief is ultra-specific and the home is particularly scarce, anything over six months suggests that something is wrong.

Three weeks to three months is how long almost all of our briefs take.

There are quite a few reasons for a non-productive search. It’s important to isolate these reasons and get to the heart of the root cause because delays can equate to losses when a property market gets hot.

Arguably, the most common reason relates to buyer’s grips on values.

Many will blame the agents, blame the underquoting, or blame the auction system. “I don’t want to buy at auction”, they tell us. “We just don’t want to participate in that process because the prices go crazy at auction.”

The reality is that most auction results land at the appraised value. Some fly, some flop, but most are where they would be expected to be had the buyer done some basic analysis prior to the auction.

We tend to find that buyers wise up to underquoting after a couple of missed attempts, but there are still many buyers who don’t grasp the auction quoting regime after months of searching. This is understandable; it can be a difficult process to navigate.

Conducting comparable sales analysis is one sure way to get a better idea of the likely selling price, but just starting with the Statement of Information is rudimentary. If the “comparable sales” are inferior to the auction property, that is a quick signal that the property is underquoted.

Another primary reason why some searches take a long time relates to unreasonable expectations. It is human nature to hope for a high quality property at a bargain price. Occasionally this does occur, but if it’s a rare outcome, the buyer who is waiting it out, hoping for their quality bargain may be losing ground in the meantime. We perform a rigorous feasibility assessment at the commencement of the brief to make sure that our client’s wish-list is both feasible and realistic. Sometimes a buyer will identify a previous sale that they have pinned their hopes (and criteria) on. But if it’s a one-off, once-in-a-year bargain, it could be setting the scene for unreasonable expectations. “Beer budget, champagne taste” is a common crude saying for this issue, but the reality is that many buyers start out with this hope.

One reason for a languishing search effort often relates to couples not being on the same page. We spend a surprising amount of time with couples when this issue strikes. Working through their must-have’s, nice-to-have’s, and individual compromises is critical to developing a brief where both are aligned.

Another common reason relates to lack of prioritisation. While it’s fun to have a weekend of great plans lined up, a busy Saturday will preclude property success. Prioritising the search for a short, intensive time frame will reward buyers.

Keeping focused and maintaining mental energy is vital.

The next reason is closely related. Reacting quickly, moving at pace and being prepared for the unexpected will ensure that buyers don’t miss an opportunity to someone else. Often an agent will alert a buyer that they have received an acceptable offer. There will likely be a tight timeframe to adhere to, and for those who aren’t organised enough to move at pace, the opportunity could be lost.

Lastly, not having finance pre-approval firmly in place can also diminish the chances of success. Some buyers tell us that they have had so many pre-approvals arranged by their broker that they’ve been advised to just find the property first and then alert the broker. This isn’t a great strategy, because timeframes are often too tight for a mortgage broker to effectively get the right pre-approval in place in time.

Delays with the search can have dire consequences at worst; pricing a buyer out of a market that they could have afforded. 2021 taught us all how fast a hot market can move. But the moderated consequences are also some to be avoided. Frustration, arguments, wasted rent, compromising on the criteria out of exhaustion… they can all take their toll.

Those who build a firm plan, test the feasibility and treat every set of inspections seriously are more likely to purchase within a reasonable time frame.