Good times can breed bad practices. You know the real estate market is strong when buyers submit unconditional contract offers whilst forgoing due diligence such as building inspections, or when un-renovated properties sell for comparable prices to renovated properties. Such displays of buyer aggression can be explained as taking a ‘risk on’ trading conditions.
Buyers have a higher appetite for risk given they believe the overall upside in the current market comfortably outweighs any risk of undetected property defects. Even though this buyer psychology is common in the current market, that’s not to say it is wise behaviour. Read more