Pinnacle breaks the acquisition process down into four key areas;
Understanding the true value of a property might just be the single most important aspect behind purchasing a property. Whilst the value of a property is always subjective to a point, there are a number of objective indicators that we use to give us an accurate understanding of what a property is worth. At Pinnacle, we only purchase investment grade properties for our clients, which means these are above average properties that have met our strict investment criteria. Placing a value on a potential property to purchase is not about trying to acquire a property at a discounted price. Good properties will not take discounts, and conversely when it comes time to sell that property, you too will not accept a discount. Good properties are about defining a fair market value, and offering that price in order to acquire the asset. One of the most important things to learn in property is that you get nowhere in life being the under bidder, if you have to pay $10,000 over what you think something is worth in order to secure a property, then so be it, as that property will appreciate at a greater amount than its competitors and that $10,000 will be forgotten in ten years time when it has doubled in value. Pinnacle uses three methods of valuation in order to arrive at a market value; Direct Comparison, Income Capitalisation and Summation. Banks and Valuation firms typically only use direct comparison, which is the most common form of arriving at a value, however we go further than this, in order to build your confidence when offering a purchase price.
The first rule of negotiation is you have to understand what kind of market it is and who holds the leverage. Generally when prices are high and demand is strong sellers will have the upper hand, and conversely when there is an over supply of properties on the market the leverage will fall to the buyer. Both conditions will have unique strategies to utilize when negotiating with agents. Negotiation should not be viewed as a game. Negotiation is not a competition between you (the buyer) and the seller, or agent. It is about working together, having open and honest lines of communication in order to fulfill the objective, which is to acquire the property at a fair price. Negotiations are only ever successful when both parties experience a ‘win’.
A contract between the seller and buyer is required for a transaction to be completed. For a contract to be valid, four requirements are needed; Offer, Acceptance, Consideration and Written Evidence of an Agreement. Contracts contain vital information such as property title, details of sellers and purchasers, any easements or covenants on the property, price, deposit and settlement terms. Pinnacle works closely with your solicitor throughout the transaction process in order to ensure a smooth purchase.
The property purchase is not assured until due diligence is carried out. The due diligence report in relation to the property will include some of the following:
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Qualified & licensed property agents sourcing investment properties & principal residences throughout New South Wales & Queensland.