For many Victorians, the first few weeks of any new year is an ideal time to think about our goals for the year ahead, and to set some plans in place to achieve those aims. Of course, one of the popular goals for quite a few people is to move to a new home.
With this in mind, we thought this might be an ideal time to share some thoughts on some of the most common mistakes that home buyers in general, and first-time buyers in particular, make when purchasing real estate. These include:
- Underestimating the buying costs. You’d be amazed how many buy a home without fully appreciating all of the costs, from finance costs like valuations, application fees and mortgage insurance to stamp duty, insurance, moving costs and adjustments of council rates. Make sure you’ve allowed for ALL of your costs in calculating what you can afford to pay.
- Not understanding the agent’s role. Far too many buyers make the mistake of forgetting that the selling agent is working for the seller. Their role is to get the best price on the terms that suit the vendor best. They are not there to get help the buyer get a better deal.
- A lack of preparation. From fully understanding what you want your next home to do, (or not do), to researching which areas will best suit your needs as well as your budget, the more planning and research you do the less likely you are to regret your move later on.
- Taking the first loan that’s offered. Research is also particularly important when it comes to choosing the right home loan. Never commit to a mortgage until you’ve spoken to an independent broker who can offer alternatives that are not only at lower rates, but that also have features that may suit you better.
- Focusing purely on the price. There’s a lot more to buying the right property than just the price you pay. Finding the right area and negotiating the right deal is equally important, including getting the right conditions in the contract to protect your interests, from building inspections to settlement times.
- Getting the wrong advice. It’s amazing how often home buyers will take the advice of well-meaning, but ill-informed, friends, relatives and colleagues that ends up costing them in time, money and stress. Make sure you get your advice from someone who has genuine hands-on knowledge and experience, not from watching a Reality TV program!
Of course, one of the most effective ways to protect yourself from making a big mistake when you buy a property is to have a professional Advocate helping you every step of the way. So if you’d like to discuss what services are available and how we can save you tens of thousands (and potentially hundreds of thousand), of dollars in the process, you can give the team at Ian Reid Buyer and Vendor Advocates on 9430 0000 today.
You’ll also find lots of helpful suggestions for property sellers in our free booklet, “Fatal Real Estate Traps Exposed”