Common Traps First Home Buyers Fall Into And How To Avoid Them
Buying a new home is an expensive and time-consuming process.
For first home buyers, the excitement of entering the housing market is often met with the confusion of so much conflicting advice from property professionals.
So the team at SiteFinder put our heads together and made this list of eleven common traps first home buyers fall into.
1. Not doing your market research! A house is an expensive investment, so don’t rush in. Get online, talk to real estate agents, go to auctions, and monitor and review local sale prices in your target area using SiteFinder.
2. Becoming emotionally attached to a property. Found your dream home on the second day of looking? And it auctions this weekend? If you finance is not in order, take a deep breath and don’t go. Who knows? The property may be passed in and yours to negotiate and purchase in the coming weeks.
3. Paying too much at auction. Auctions are pressure situations fuelled by emotions. Only attend an auction after doing thorough research on recent sales in the local area (using SiteFinder of course!) then setting yourself a buying limit. If you can’t trust yourself, ask a friend to come with you do your bidding, or engage a buyer’s auction to act on your behalf.
4. Inadequate research. Knowing property trends and the price range for homes in the area you are interested, current property sale prices and even what amount properties have been passed in for at auctions. All this property data is instantly available at SiteFinder and is vital for achieving a beneficial sale price.
5. Failing to negotiate on the purchase price of a property. The seller’s real estate agent is neither your friend nor your advocate. Don’t trust them to assist you when it is time to reach a deal on a property price.
6. Buying a home you cannot afford. Creating mortgage stress is just unhelpful to everyone in your life. Especially if you’re a first home buyer, it’s important to stay within your means.
7. Not getting building and pest inspections before entering into a contract. Not only are these inspections are excellent negotiation tools, forgoing these inspections may leave you with a house full of building problems and expensive repairs, the cost of which you will not able to recover the property seller.
8. Not getting pre-approval for finance. Shopping for a new home with a dollar figure of how much you can spend allows you to accurately budget for all costs, including stamp duty, legal fees and moving costs, and avoid mortgage stress.
9. Relying on a building and pest inspection report provided by the seller’s agent. This report is not truly independent. If you love the house spend the money and conduct your property inspections.
10. Buying a new home before selling your current home. With the pressure of settlement forcing you to accept any offer you get on your current home, this can only result in achieving a lower sale price.
11. Relying on the advice of the seller’s real estate agent. This person works for the seller. Their job is to achieve the maximum sale price for the seller’s home, and they are paid handsomely in commission from the sale price of the home. Take all that they say for what it is – a marketing exercise– and complete your own due diligence checks.
Find your dream property online with SiteFinder. Filter search results using multiple criteria to find the exact sites that meet your needs. ideal for first home buyers who want to maximise their budget. Find out property prices and real property information instantly.
With SiteFinder you can filter search results using multiple criteria to find the exact sites that meet your needs, allowing you to search entire suburbs, or even groups of suburbs, in seconds. Ideal for first home buyers on a budget who need instant answers.