Young Melbourne family scores dream home for $35k less than they though through shrewd negotiations

A young Melbourne family managed to get into a property after months of searching — and managed to save thousands while doing it. Here are some tips for first time family home seekers.

When negotiations to buy their first home stalled earlier this month, Adarsh and April started to walk away.

Just a few steps later the home seller cut their asking price by another $15,000 and in a few moments the couple had a place to raise their 15-month-old son Aiden.

They bought the Mickleham home in Melbourne’s north for $35,000 less than they thought it would cost, and just a month after turning serious on a house hunt that had started about six months prior.

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Ironically it was an investment group Mr Manuel was following on social media that convinced them now was the time to buy.

“They were saying that Melbourne was going down and investors are shifting to other parts of the country, and that gave me the hope that now might be a good time to get a house,” he said.

“We were struggling as first-home buyers with a baby, but with investors trying to get out especially with land tax making it more expensive to hold on to property in Melbourne, that became a blessing in disguise for us.”

Adarsh and wife April have just bought their first home this month, and are looking forward to raising their son Aiden, 15 months. Picture: Jake Nowakowski

When they arrived at the auction it was just them and one other buyer, ironically an investor who dropped out almost immediately and the young family were given the chance to negotiate immediately after the owner had watched the sale fall short under the hammer.

“We knew we had the upper hand ... we were their only real buyer and it could take them weeks more to readvertise and Christmas is closing in,” Mr Manuel said.

“And if we weren’t going to get the house at the price we wanted, we were happy to walk out as there would be another house.”

The vendor pushed for more, but the couple refused.

“Then my wife started to walk out after our final offer, and they took it,” Mr Manuel said.

For others looking to buy, Mr Manuel said he couldn’t imagine a better time to buy, even if that meant compromising on the home or suburb you wanted.

“If you have the opportunity and if you can get any government support, take advantage of the market situation,” he said.

28 Faraday Street, Mickleham is currently on the market in the same suburb that Adarsh and April bought in.

The family are using the First Home Guarantee to minimise their deposit requirements, helping them to fast-track their plans to purchase.

Ray White’s Adrian Prestileo sold them the home and said buyers were spoiled for choice, with more than 100 open for inspections held for homes across Mickleham in the past weekend alone.

While many of the homes for sale are owned by investors, many frustrated by Victorian property taxes and government moves, he noted first-home buyers were starting to face some competition from interstate investors in the area.

For sellers, he said while they weren’t necessarily making as much of a profit as they would have in the past — few would sell for a loss, and were keen enough to reinvest their money that negotiating was an acceptable outcome.

First home tips from a family

Melbourne first-home buyers are headed into a summer that could be their best chance to buy a home in years. Picture: Jake Nowakowski

– Ask grandparents for help babysitting, this can save you significantly on child care;

– Pick up extra shifts at work if your employer will let you;

– Watch for homes where owners are reducing their asking prices and could be open to negotiating;

– Go to auctions, and aim to have a home passed in to you;

– Be aware that many sellers will be more willing to negotiate because Christmas is close;

– Do not get emotionally attached;

– Be willing to walk away, even literally, from a purchase;

– Look for former investment properties where investors might be motivated to sell and invest interstate;

– Don’t wait for an interest rate drop, as prices will probably rise;

– Look into and use government assistance schemes, like the First Home Guarantee which can allow you to buy with a deposit as small as 5 per cent.

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Originally published as Young Melbourne family scores dream home for $35k less than they though through shrewd negotiations