Common mistakes buyers make

While you might have done all your research and be well prepared, it is still possible to be overwhelmed by the situation and the circumstances when buying a property.

This could lead to making a non-optimal decision. So, what are the red-flags throughout the process and how can you avoid them?

·         Being too influenced by the agent. While real estate agents are an important part of the home buying process, and you should maintain a good relationship with them, you must also remember that they primarily work for the vendor. Which means they are going to get the highest price possible for them, not the lowest price for you. They are paid a commission based on the sale price, often with additional incentives for higher prices, so they will work hard to negotiate the price upwards. This might mean that they talk certain aspects of the property up and downplay the negative aspects.

·         Another common mistake is to make poor comparisons with other properties and not identifying the differences that may influence price.

·         Letting emotion over-ride good sense. While emotions can be high, you should always make a rational decision. Remember – first with the head, then with the heart.

·         Trying to pick cycles. Unless you’re a professional and have bought and sold many properties, trying to pick the best time to buy is near impossible. There would need to be a very compelling reason – such a recession, otherwise cycles will always be present and given it will take you 6-12 months, or even longer, to find, purchase and settle in your property, the cycle may have changed in that time anyway.

·         Not getting a building and pest report. This would be a mistake. You may think it is ok to skip this step if you bring your friend or family member who is a carpenter or other type of tradesman, but this could cause you grief down the track. Imagine if they said it as all ok, then you found water leaking from the roof that would cost thousands to repair. That would be an awkward position to put someone in.

·         Rushing your decision. Even though you might be tempted to make an offer on the first property you see because you have fallen in love with it, I would strongly suggest you take the time to look around.

It’s important to do your due diligence to make sure you make the most of your investment.

One mistake you can avoid is to ensure that you have your finance in place prior to starting to look for properties.

To get started you can complete our 5 minute form here: https://bit.ly/43VqyrH
Call on: 0418 552 938
Email at: peter.jefferson@mortgagechoice.com.au, or
Book a time to chat: https://bit.ly/43WsXma

If you’re a first home buyer, I’ve also created a useful guide to help you understand other key aspects of buying your first home.