Buy Property Like a Grandmaster Chess Champion
Chess is a game of wit, patience, timing and skill. To buy property in a sellers market involves many of the same traits to be able to win. As a Buyers Agent we are playing to win for our clients.
Top 9 tips from International Grandmaster Arthur Bisguier on how to play better chess (and our subsequent commentary around great buying property well):
1. Look at your opponent’s move
Being kept updated of an developments in the property you want to purchase is paramount. If you are interested in a property, request a copy of the contract and ask to be kept informed on any offers or developments. If you are bidding at auction, we recommend that you stand at the back of the gallery (or sit at the back of the auction room) to be able to watch your opponents. You can see who is bidding, how many are still in, along with their body language as the auction progresses.
2. Make the best possible move
When you are offering, know what a fair price is for the property and offer firmly and fairly. Make the offer as appealing as possible for the vendor, within terms and conditions that you are comfortable with.
3. Have a plan
Planning your ideal outcome is paramount to success. As buyers agents, the first step with any new client is to create a Buying Brief which outlines the exact criteria around the property we are searching for on their behalf. Plan what you want to purchase and constantly refer to this so you constantly have your goal at the front of your mind.
4. Know what the pieces are worth
Gaining an understanding of values in your target area is paramount to buying property well. Do your research and be able to quote values like an expert. You are acting blindly if you are trying to buy without knowing the recent sales of comparative properties. Selling agents will see this immediately and can easily lead you towards paying well above what the property is actually worth.
5. Develop quickly and well
Buying property in a rising market needs resilience and patience. Being out in the market attending auctions, networking with selling agents. If you haven’t purchased before then learning the process at the start of your search is a lot smarter than finding out when you first offer on a property.
6. Control the centre
Control the buying of your property in every instance. If you are offering prior to auction, know where you see value and know what you are offering. Understand the property through correct due diligence (building and pest inspection, strata report etc.) so you know exactly what you are buying. If you are bidding at auction then be firm with your maximum figure and do not go over it. If you are true to yourself, then you will always be in control of the buying process.
7. Keep your king safe
Some buyers take years to put themselves in a position to purchase. So for years of saving your pennies, why be reckless with a buying decision that could send you backwards financially? Treat your equity (your wealth) as your “king”. Protect it and respect it. Invest well and don’t be in a rush. Don’t listen to your fear of missing out (FOMO) and make calculated and correct investing decisions.
8. Know when to trade pieces
Timing is real estate is so very important. Buying earlier in a market’s growth phase will see you achieving a lot more capital growth in the early years of you owning that property. Conversely buying at the top of the market will see you having to wait years before you see any significant capital growth.
9. Think about the endgame
What is your long-term goal? Are you investing for your retirement, for your lifestyle, or for your children. Your endgame should shape your investment strategy and how you plan to get to your long-term goal. Work in with a leading financial advisor to best help you plan for your endgame.
Chess takes skill, patience, and using the rules of the game to your advantage. Property investing is a practice sport in similar ways, where experience and skill do directly affect your success over time. Be patient, be calculated, and invest like a champion.