Buying your dream home or investment property is likely to be one of the greatest financial investments you ever make. It takes a lot of time, running around, research, analysis and perseverance to find the right property, and to win when purchasing it at auction or for sale. To help you succeed we have compiled a list of 7 mistakes to avoid, that will help you to find and buy your dream home or investment in the Eastern Suburbs of Sydney.
1. Don’t be too emotional – it can be hard to control your enthusiasm when you have finally found ‘the one’ but loosing your cool and letting the agent know you love the property will cost you thousands. Always have a friend or family member with you to keep you calm and don’t start jumping for joy until you’re well out of the agent’s sight! Never make an offer on the spot. Go home, sit down and do your research to ensure you are making a reasonable offer for the property.
2. Don’t give away too much – don’t tell the real estate agent what your budget is, in which school zone you need to be or that you really need a house with a granny flat for your mother-in-law who is moving in. If the agent has this information, you are simply reducing your ability to negotiate. The real estate agent is legal obliged to get the best price for their client so they will use this information to their advantage and your ability to negotiate is severely diminished.
3. Never over-stretch at auction – know your limit and stick to it! Auctions are designed to play buyers off against each other and to be emotional (to get you to bid way over your budget). Do not let this happen as you will be paying for it for the next 30 years! Always have someone you can trust with you at an auction and have your maximum limit burnt into your brain. Go to a few auctions so you know the process and you feel more comfortable when you are ready to register and bid.
4. Act promptly – the current market in the Eastern Suburbs is very hot which means properties are being snapped up. Auction clearance rates are extremely high and many Vendors are accepting offers prior to auction so many properties are on the market for 4 weeks or less. This means that once your have found ‘the one’ you need to move fast to do all of the due diligence and evaluate the property. You may also want to make an offer prior to the auction.
5. Ensure you have a good team – in this fast moving market it is important that you have a good team of professionals you can trust and who will work quickly once you’ve found ‘the one’. You will want to consider professionals such as a mortgage broker or financial advisor, solicitor or conveyancer, building and pest inspectors and strata searches. You should have your finance pre-approved before you start looking and if you have been looking or some time check that your pre-approval has not expired. It is vital that your finances are in place and you know what due diligence is required as soon as you have found a property.
6. Buyer Fatigue – if you have been looking for years, or even if it just feels like you have been looking for years, you might feel like just buying something that’s ok, but not quite your dream home. Don’t do it! Buying real estate is a huge investment that you will be paying off for many years to come. If you can’t do this on your own anymore seek professional help from a licensed Buyer’s Agent such as www.unlistedproperty.com.au. Do not buy the wrong property!
7. Understand the full cost of buying and set your budget – when buying real estate there are many costs to consider additional to the purchase price. Costs such as stamp duty, strata, building & pest reports, legal fees and finance charges need to be considered as well as moving costs, strata fees or council rates and insurance. These costs really add up and need to be factored into your budget before you make an offer or put your hand up at auction. Know the full cost of buying and set your budget accordingly. Don’t over stretch yourself or you will be paying for it for many years to come.
If you would like professional assistance to find and buy your dream home or investment property contact Unlisted Property Buyer’s Agent. At Unlisted we do not sell real estate, we help you find, evaluate and negotiate the purchase of real estate in Sydney’s Eastern Suburbs. Contact us today www.unlistedproperty.com.au 0424 266 205 felicity@unlistedproperty.com.au
