Chapter 1: What is the main topic discussed in this episode?
It's The Real Estate Podcast across every state, city and town of Australia. And welcome to another episode of The Real Estate Podcast, available on iHeartRadio every morning, also on Spotify and Apple and wherever you get your podcast from. Well, it's another Friday, the 5th of August for 2022. I hope that it went fast this week for you. It went lightning fast for me.
No sooner had Monday started, and here we are on a Friday heading into another weekend. Coming up this morning, we are talking with Rich Harvey, who is back, and we're looking at getting the right valuation and then not stuffing up your offer when submitting one. Pretty important stuff. If you're celebrating your birthday today for the 5th of August, happy birthday.
And I see from the history books on this day, Marilyn Monroe. Yes, it was on this day back in 1962 that she died. And also Richard Burton. 1984, same day, and I put Richard Burton in the same category as Oliver Reed. What a great lunch that would be, having the two of them at the same table. Certainly plenty of testosterone.
From first home buyers to property investors and everything in between, every morning on The Real Estate Podcast. We are just as addicted to property as you are. Every weekday morning from 6.30. It's the main centre forecast with propertybuyer.com.au. Around Australia, we go to look at your weather. Firstly, we go to Sydney, expecting some sunshine today. 22 degrees is your forecast high.
Melbourne, the rain is back with 15. Brisbane, look at the temperature, 25 degrees and a sunny Friday. And in Perth, one or two showers with 15 degrees. It's the real estate podcast across Australia, seven days a week. Let's Talk Property, a podcast series with Rich Harvey. Well, there are many, many challenging decisions around purchasing a property.
And one of the more stressful decisions is determining how much to actually offer on a property, which can cause a lot of anxiety and stress. And let's face it, in real estate, you're investing hundreds of thousands of dollars and even millions of dollars. And if your offer is wrong, it can be painful in so many different ways.
And when it comes to determining value and your price offer, there are several options and ways to go about it, but not all of them are reliable. So to help us work out true value and make the best offer and put your best foot forward, let's bring in Rich Harvey from Buyers Advocate and CEO of propertybuyer.com.au to help you understand the best process. Good morning, Rich. Good morning, Craig.
Great to be with you again. Another busy week, of course, and in the middle of it, we've had another rate rise. You're right across that, no doubt. Oh, absolutely. Yeah, well, there's no doubt about the Reserve Bank checking rates up another half percent. I'm one of the 42 specialists that the Finder survey does and predicting what's going to be happening in the interest rate market.
And we all, 100% of us said that rates would go up. Some were being even more bullish and saying it was going to go up 0.75, but it went up 0.5 as expected. And I think from now on, you'll probably see a couple of 0.25% rises until we get to that sort of 2.5% cash rate. And so as we know, there is so much property data available to people to source from.
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Chapter 2: How can you determine the right property valuation?
So we know the local area. We know what properties are selling for. And even having an understanding of where the street is in comparison to other streets, like some streets closer to the shops and closer to the transport links are often going to be at a higher value to those that are a kilometre or two kilometres away.
Often, Craig, it's called the golden triangle for some reason in certain suburbs. It's a lingo. So knowing where a property's positioned, knowing what its aspect is and knowing whether it's going to be in a damp gully, all of those things will come into a point.
For us, we're unemotional about it and we can also have that added advantage when it comes to negotiating of being able to represent the client and really negotiate hard using our valuation skills and to get the best offer price we can for our client accepted. And finally, there are different ways to make an offer on a property, but what is the best way to actually do it?
Now, some will do it verbally and others will do it in writing. And just as important, I think, is how should people structure and pitch their offers? This is the secret sauce, Craig. You're asking a really tough question here. You're asking me to give away all my secret sauce in one question, but I'm going to do it right here to help people.
I think the first thing is I will make my offers both in verbally and in writing. Very important to make it in writing. But it's also really important to know what number to start with. And again, there's no one size fits all. What I do is the minute I start talking to the agent, they're gauging me and they're assessing, am I a serious buyer? That's what they'll do with you as the purchaser.
They're going, is this person, Mr. A or Mrs. B, a serious buyer? And how much money do they got? How interested and how emotionally attached are they to this property? So that's why it's really great having a buyer's agent because we remove that emotional aspect from negotiating. So you don't want to go in too low. You don't want to go in too high.
I mean, if you put in a really, really cheeky lowball offer, you know what? The agent really just doesn't treat you seriously. Not to say I haven't done it. I've put in some cheeky lowball offers. But what that does, it can actually put the vendor really off and go, look, they're not serious buyers. And the agent goes, you know what? They're not serious. They're not really going to come up much.
You've got to put in an offer that's going to get their attention and use it as a starting point for negotiations. Now, sometimes I've also put in an offer and I've said to the agent, Mr. Agent, this is a one-time offer. I'm not coming back to you with a second offer and I'm walking away if it's not accepted. But you've got to provide the context for how you make that offer.
If you just stick an offer in and say nothing, they're not going to understand it's your best and final offer. Typically, it might come down to you putting in two, three, or maybe four offers and knowing just how much to move up on each offer and getting some intel on who else is offering and what the level of their offers are is vitally important.
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