Don't Buy a New Home Until You Read These 6 Basic Things
The team at SiteFinder are experts in property, and all too often we see new buyers make the same property mistakes.
Break the cycle and be a smart property investor by taking our advice and not buying a new home until you’ve read and followed these top tips.
These six things may seem small but they can significantly impact your outcome and ensure you secure a sound property investment.
1. Get everything in writing. No getting it in writing. The TV will stay at the sale of the house, the extension has been certified; the sale includes all the pool equipment (list the items too!). Did you get that in writing? No? Then, sorry, it’s like it didn’t happen in the world of real estate.
2. Never confide in the seller’s real estate agent. In the real estate game, you have just done the equivalent of shown your hand. Remember, the seller’s agent has a job to do – that is to sell the house of vendor. When they do this they get paid a commission, which means they do not act independently, and they most certainly are not acting in your best interest.
3. Don’t go to an auction and bid on a property if you don’t first have finance. Would you go to the supermarket without your wallet? Then don’t go to an auction and register to bid if you don’t know how much you can spend. Yes, even if you think finance is a sure thing, buying at auction without the security of a mortgage puts you on the back foot with financial institutions, weakening your bargaining position when you approach them Monday morning for a home loan.
4. Not obtaining a pest and building before bidding at auction or finalising a contract for sale. It is just bad financial sense not to undertake thorough investigations of a property before you buy it. And if you can’t afford to do your due diligence, you can’t afford the property. Know all the facts or you are risking your entire investment. Dealing with termite damage, pest infestation, water rot, major plumbing issues, foundation problems, the list is huge.
5. Deciding to do your own conveyancing. If you don’t have a law degree or are an experienced legal clerk, you could be costing yourself thousands of dollars. Conveyancing is a specialised legal field for a reason. Property contracts are complex with multiple timeframes, and requiring constant liaising with financiers, council councils and the other party’s legal representative. Failing to act within a time-frame could void the contract or leave you open to a lawsuit.
6. Not doing your research. One of the biggest mistakes people make when purchasing a home is not doing research on the property itself. Is the area flood-prone? Coul you build that extension? Luckily SiteFinder gives you everything you need to know in a real-time report. With everything from plan details and frontage to development constraints and flood reports, you’ll be able to make a better decision when it comes to this costly investment.