When analysing behaviour retrospectively, there are 3 surprising mistakes homebuyers routinely make when purchasing properties.
These 3 mistakes each have the potential to cost house hunters significantly. Buying property can be fraught with danger, knowing the traps is vital to ensure you avoid overpaying on our next acquisition.
Mistake #1 – Falling in love
Home buyers notoriously make the mistake of expressing emotion when looking at properties. In a majority of situations, a sellers’ agent will uyer is on a particular property, based on their emotions. This is a mistake.
Remember, the sellers’ agent is there to maximise the sale price for the seller. The smart homebuyer understands the real estate agent is legally and morally obligated to safeguard the best interests of their client – the seller.
When a prospective buyer expresses how much they like a particular property, it usually puts them at a disadvantage at the negotiation table. Containing emotions will benefit the homebuyer, helping to avoid paying too much.
Mistake #2 – Lack of due diligence
Considering the financial enormity of purchasing real estate – the largest transaction many people will ever make – it is astonishing to see how many homebuyers enter the market lacking thorough research.
Some homebuyers may naively believe they are fully prepared after a rudimental investigation, but the truth is, most homebuyers are unfortunately underprepared, and neglect consideration of specific key factors.
While knowing what comparable homes have recently sold for is useful, a professional will have a deeper understanding of the current market, and formulate a comprehensive analysis of future projections. They will have knowledge concerning the neighbourhood, possible zoning issues or changes in the pipeline, crime rates, quality of local services, planned infrastructure and everything else appropriate for high-level due diligence.
Mistake #3 – Lack of financial planning or deviating from the plan
Many homebuyers make the costly mistake of signing up for the wrong mortgage. A wise homebuyer will seek a professional and independent finance broker, who has access to numerous lenders and financial packages – avoiding one simple decision with hefty implications.
Another costly mistake homebuyers make is over-committing. For example, falling in love with a property that is beyond their budget, believing somehow it can work. Ultimately, this tends to result in undue financial pressure. It is strongly advised to have a carefully considered budget, and vital that the budget is adhered to