3 Big Challenges All Property Buyers Face
Real estate is a tricky and expensive business so you really don’t want to go in to a property purchase lightly. Buying property in an uncertain market is even trickier and we have noticed over the years there are three big challenges all buyers face. That’s right, ALL buyers, not just you.
1. You are time poor!
We get it – life is busy! In a uncertain market it is hard to know when it’s right to take action. In a sellers market, you are likely to panic and take costly shortcuts because you feel time simply isn’t on your side. In a buyers market, you often do nothing because it is easy to feel you are in the drivers seat and there is no urgency to make decisions. So, what’s the big problem? Deep down all you really want is to find your dream home and get on with life but it’s a busy life that is getting in the way of your search. Or if you are looking for an investment you really need to identify a quality asset so it is critical you take the time to find the right one.
2. You are out of your depth!
Agents DO know more than you, they’ve negotiated more property deals than you’ve had baked dinners, so you will be disadvantaged. After all, their job is to get the best possible price for the owner. Agents are not all the same and can’t be negotiated with using a blanket approach, you’ll need to change your tack depending on the type of person you are dealing with. And then, there are always inconsistencies in the market that need to be navigated, particularly when the market transitions from season to season. Our owm flawed thinking can lead us to make poor decisions. Let’s face it, most property buyers simply don’t know what they don’t know. And, lastly, don’t forget the ‘elephant rules you’ and your emotions are likely to get in the way.
3. It’s easy to overpay!
So often the agent will suggest a price for your offer to come in at, but is that something you can rely on? It does get confusing because what the agent is quoting and what a property actually sells for can vary greatly. Sometimes, we see properties selling bang on the agent’s quoting and other times they sell for more than $500k in excess of what was initially indicated, so be wary of the 10% rule. When the market is hot buyers are tempted to make panic offers prior to auction with little real understanding of the true value and if they are faced with attending an auction they don’t set their limit until they are on the spot and under pressure.
As you can see, it’s a minefield and these three big challenges are very real and affect everyone. Worse still, buying the wrong property at the wrong time can have a negative impact on your future financial position.
If it all gets too much, please get in touch, we would welcome the chance to help you buy your next property without regrets.
First published: – 30 January, 2020
DISCLAIMER: Good Deeds buyers tips are intended to be of a general nature. Please contact us for advice that is specific to your individual circumstances. You may also need to get advice from other professionals such as an accountant, mortgage broker, financial planner or solicitor.