Acquiring Real Estate is a complex and often emotional process and it’s easy to do the wrong thing. Here are some things to make sure to avoid.
Only listening to your heart
Think about that time you nearly bought a cute and fluffy puppy – it tugged at your heart strings and you would have definitely taken it with you from the pet store at the mall if you didn’t have your hands full of shopping. But when you got home you realized you don’t have the bandwidth to own a dog – you’re out all the time and you definitely couldn’t keep up with all the maintenance. Not to mention the cost of food and vet bills.
Buying property is the same thing, a place might capture you on an personal level and you’ll feel the urge to make an offer on the spot or even to throw caution to the wind and say “Budget? What budget?” But if you don’t properly think things through and stick closely to the limits you’ve set yourself, you’ll find yourself under a lot of pressure. Plus you can’t sheepishly return a whole house to the store it came from.
Not getting a site inspection
With all the costs involved with buying, you might be tempted to skip the building inspection, but you’d be wise not to do so. A building check can expose termites, faulty foundations or land issues that could cost you thousands down the track. Even with an apartment it’s worth checking as the property may have issues that you’ll be billed for as part of the strata.
Skipping the research
The house you’re planning to purchase in might seem surprisingly cheap for what seems like a good area, so it pays to check out why that’s the case. It could be that there’s a freeway about to be built right behind it, or some very unpleasant neighbours, so ask as many questions as you can to make sure you don’t end up with a lemon.
Not getting pre-approval
If you do find your dream house and there’s healthy competition for it, securing the finance could be the thing that puts you on the back foot and loses your property. Even if you have had preliminary discussions with your bank or broker and they’ve assured you of the amount you can borrow, you need to have it ready to go for when the time comes.
Announcing to the selling agent what your top price is
It might be exciting to know how much money you can spend, but you need to keep your poker face so that the vendor doesn’t take you for a ride. Throwing a figure out early might mean that you spend exactly that amount, when you could have negotiated to a much lower price.
A buyers agent can help you negotiate the world of property purchasing. For more information contact Amanda On My Side.