How to avoid buying overvalued properties

“I think if anyone bought six months and probably the 12 months prior to that, you would find that it was pretty good negotiating conditions.”

“But it’s been few and far between those times over the last seven or eight years, and we are re-entering into that with probably four or five weeks of consecutive 75 to 80 per cent clearance rates,” the property guru said.

Mr Glossop noted that investors need to temper expectations and emotions if they are to get the best valued investment and not get swept up in the buying process.

“If nothing else, we want to make sure that people are considering every single thing that they should be considering. 

“The best compliment I can have, as well as my team as buyer’s agent, from a client of ours using our services is that it was a pretty mundane and boring process,” Mr Glossop said.

He also said that investors need to know the reasons they are buying a property and know why they are “not interested in it at that price for these reasons”.

The property investor believes it’s important for investors to remain patient.

“We’ve gotta sit tight, we have to be patient because it might not happen next month, but we have to wait for the floodgates to open on supply,” Mr Glossop said.

“Patience is key and having the ability to say, ‘There will be another one,’ and trying to work towards saying, ‘This is where value sits, anything above that is emotional buying’,” the property investor continued.

He noted that buyers with a lack of experience are more likely to suffer in a market with low supply and high demand.

“Buyers who buy maybe one, two, three properties in their life just don’t have the experience of knowing I can be calm here, and, ideally, our job as a buyer’s agent is to take away any of that urgency and temper it with the reality of what should happen,” Mr Glossop concluded.