Best buying tips for this Spring season - John McGrath

We’re in the midst of another Spring selling season, and this year, we’re seeing vendors enjoy a strong position in the market. There are good reasons for this.

According to Cotality’s October Home Value Index (HVI), a combination of lower interest rates, rising real income growth, tight labour markets and a gradual rise in sentiment, are driving property demand. And the disconnect between this demand and property supply is a recipe for solid selling conditions this Spring. Prices will likely lift further, now and into the end of the year.

Advertised stock levels are below average in every capital city are also strengthening selling conditions and adding to the momentum in home value growth. And, while recent long weekends have impacted auction volumes in some locations, the HVI revealed that national auction clearance rates have been at around the 70% mark since mid-August, further indicating the strength of the market. This is up from an average of roughly 63% through the June quarter and 62% in the three months to March.

But buyers this Spring are still confident and keen and there are good reasons for this too. As Cotality’s HVI showed, the key motive for this confidence is the Reserve Bank of Australia (RBA)’s three cash rate cuts this year. And there is a possibility we’ll see more rate cuts coming.

The REA Group’s 2025 Property Seeker Survey, released last month, also showed that the fear of missing out (FOMO) outlook is creeping back. More people, including investors, are looking to buy this year, compared to last year. And 25% of these buyers are feeling positive about finding a home – which is a 4% increase on 2024.

So, with all this in mind, here are my best tips for buyers this Spring.

Buying at auction

1.      Auction sales are unconditional and there is no cooling-off period for buyers afterwards. So, before bidding on a property, make sure you’ve done your due diligence, including obtaining pre-approval and organising a building and pest inspection.

2.      Combine confidence with prudence. Don’t be afraid to start the auction, but with a low bid, and be the highest bidder just before the property passes in. This will put you in a strong position to negotiate with the agent after the auction.

3.      Whatever happens, don’t bid more than you can realistically afford.

Buying before auction or via private treaty

1.      Pre-auction offers can be a smart idea in an active seller’s market like the one we’re currently experiencing. Ask the agent if the vendor will consider this kind of offer.

2.      Consider a trade-off, rather than a higher offer. Trade-offs can make your offer look more attractive to vendors. They can also prove you’re serious about buying. For example, suggest that you’ll waive your right to a cooling-off period.  Or include special terms, like a longer or shorter settlement. A problem picked up by your building and pest inspector may also give you the chance to negotiate a lower offer.  

3.      All sales offers should be put in writing and your first one should be as close to your ideal price as you can.

The right property for you and your family can take awhile to find. But that doesn’t mean you should give up or get too discouraged.

Be practical about your house needs and consider compromising on some of them, if you have to. But never pay more for a home than you can realistically afford. Do your due diligence, combine confidence with prudence, and persevere with your plans to buy a property.

Good luck!