By STEPHEN HART

How quickly things change. It seems like only yesterday that everyone you met had a success story to tell about buying a do-up villa on the wrong side of the tracks for a snip. After a quick tidy up and a coat of Dulux, they put it up for auction and made a killing thanks to a legion of frenzied bidders with bottomless pockets and a vampire-like thirst for anything in a half decent school zone.

Things are very different today. The hubbub of auction rooms, packed-to-the-gunnels with eager buyers clasping their pre-approved home loan certificates has gone very quiet all of a sudden. It’s as though buyers have inexplicably fallen out of love with the whole home ownership deal.

That’s not the case of course. What we are seeing is uncertainty; what buyers have fallen out of love with is the idea of buying ordinary homes at extraordinary prices, not knowing if the market is in freefall, recovery or dead-cat-bounce mode. They are sitting on the fence and watching the drama of the property market from a safe distance.

Of course, you can only profit from a buyers’ market if you actually buy something, so sitting on the fence procrastinating does have its drawbacks.

A buyers’ market is a bargain market, but bargains rarely reveal themselves. In the boom times it didn’t particularly matter whether you bought especially well or not; all boats lift on a rising tide. Now it does matter – big-time. Here are some tips on how to do it.

Know the market and yourself -
• Visit lots of open homes and compare prices and features. Make sure you recognise a bargain when you see one.
• Ask the agent to provide you with a print-out showing what other houses have sold for in nearby streets? Do drive-by inspections to see how the homes compare.
• How many offers has a house attracted? Why have they not proceeded?
• Be clear in your buying objective. What’s the most important thing for you, a bargain or a lifestyle for your family? If you do pay over the odds for a home it’s not the end of the world if it matches your requirements perfectly.

Look for hallmark, market-proof features -
• Quiet location.
• Close to town, easy commute.
• In-keeping character.
• Good school zoning (just because it’s in a school zone doesn’t mean it’s a good school, check out its reputation and results).
• Established or up and coming area.
• Good access to motorways and airport.
• Good retail options nearby.
• A view or something unique that differentiates a property from other typical homes in the area.

Take away my worries – make sure the real estate agent can provide you with the reassurance you need about everything, then it’s easy to climb off that fence.
• Is the listing price fair market value? Ask them to rationalise how they came up with the asking price. “It’s what the seller needs in order to buy their new home,” is not a good answer.
• Do you have a registered valuation for the property or has it been Value Verified? You want to feel confident that you’re not about to be stung on the price.
• Yes, you would like the seller to provide and pay for a LIM Report to ensure there are no nasty surprises, thank you very much.
• Is the agent is aware of any issues regarding leaks or any other negative factors about the house. If not ask them to confirm by email so you have something in writing if it all turns to custard.

Choose certainty over uncertainty –
• Favour homes with firm listing prices when you are considering a short-list. At least you know the price the seller will definitely accept. You just have to find out whether it’s good value or not.
• If a home is for sale by auction, consider making a pre-auction offer. There are likely to be fewer interested buyers than there were previously and that could mean less competition.
• If you’re not happy that a pre-auction offer has to be unconditional, then walk away from the house or explain that you are only prepared to consider it subject to certain conditions. It’s up to the seller to decide whether that’s acceptable.
• Don’t neglect your due diligence checks. Buying at a good price is one thing; you also need to ensure that the place is sound and not leaking like a sieve.

This is the perfect market in which to consider buying. In the previous sellers’ market, when fevered auctions were prevalent, too many buyers ended up paying too much for mediocre homes, often without even the reassurance of adequate building inspections and price checks. Now the canny buyer is in a position to get a fair deal with better knowledge of all of the facts and that should ensure they are buying the house that’s right for them at the right price. And that’s all any buyer can ask.

Stephen Hart is a Director of Homefinders and author of Where to Live in Auckland and The Streetwise Homebuyer.

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