Common Mistakes for Buyers to Avoid

Common Mistakes for Buyers to Avoid

Emotional decisions

Falling in love with a property is perfectly normal, but it can hinder your thought process. Making decisions based on your emotions could see you paying more for your dream home, or possibly cause you to overlook important issues. When inspecting a property have a list of things that are most important to you, i.e. schools or public transport. But also include items to inspect like lighting, mould, sagging ceilings and uneven door frames. Additionally, a pest and building report should be done before signing any sale contracts.

Lacking confidence

You may have never purchased property, or you may have a large portfolio, nonetheless if you aren’t in the property market, negotiating daily, you may lack the confidence necessary to negotiate and speak with selling agents. Selling agents are professional negotiators and by asking some simple questions can sense your lack of confidence and walk right through you. A BA is a professional that does this all day, every day, someone that has only your best interests at heart and won’t let a selling agent get in the way.

 Procrastination

Doing it alone can often be a struggle. Sometimes life gets in the way, and you say to yourself ‘it’s ok, I’ll look tomorrow’, ‘I’ll call that agent later’, ‘I’ll research on the weekend.’ Sometimes you just make anything else a priority, so you don’t have to sit down and do the work. I’ve seen it countless times where people say to me ‘I’m looking to buy a property’ and when I run into them 6, 7 months later and ask how it went; the answer, Oh I just got so busy with life and I never got around to it, but I’m sure I’ll get to it soon.” Or “I finally found an awesome property, but it sold before I had a chance to put in an offer”.

Lacking knowledge

Maybe you read a book or went to a seminar about property, and in theory you know all the steps to purchase property. However, when it’s crunch time and it’s your hard-earned money on the line, it’s a different ball game. When you are doing it yourself, you may be confused by all the information, you may not have enough information, you may just be lacking knowledge of what to buy, where to buy, when to buy.

 Unsure of the process

You have found a property, now what? What offer do you put in? How will you understand the building and pest report? You got through all that and you’ve purchased a property, now how do you find a great property manager to ensure your investment is taken care off?

 Spending more than your budget

A home is a big investment and you want to make sure you can afford it in the long run. It’s easy to get swept up in the moment and thinking you can cut back on other parts of your budget to afford the house you’ve fallen in love with.When crunching the numbers to determine your budget, make sure you’ve made allowances for extra costs such as stamp duty (varies from state to state), insurance and legal fees.Don’t forget to factor, possible interest rate rises or changes to your circumstances in the future. Even if you did have the extra money to invest, it’s always good to try to add extra money into your mortgage, rather than borrowing your maximum.

 Not doing your research and due diligence

Don’t believe everything you’re told. The real estate agents by law must act in the best interests of the seller. Even if you trust what the agent – or your friends and family – are telling you, it pays to do your own research and form your own conclusions. Talk to other experts, get to know the neighbourhood demographic and familiarise yourself with how much similar properties in the same area have recently sold for.Look into any planned developments for the area because that could impact the capital growth on the property or ability to rent/sell down the track.It also pays to check the crime rate of the area. This not only gives you peace of mind, it could affect the cost of your insurances.

 Not getting professional help.

There are so many variables when buying a house, so this is by no means a comprehensive list of what you should be checking or researching. It may seem like a luxury to hire a buyer’s agent, especially when you’ve spent so long saving every last dollar for a deposit but that is exactly the reason to hire one. Engaging the services of Buyers Agent will save you money, save you time, save you stress, but most importantly, save you any costly mistakes!

If the buying process feels a little overwhelming to you and you are not comfortable with the overall buying property experience then this may be the perfect time for you to reach out and consider hiring a buyer’s agent.

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