Your home may very well be the biggest and best investment you make. As exciting as the process may be, it is one riddled with complexities. Making mistakes when buying a home could potentially cost you tens of thousands of dollars, not to mention regret from missed opportunities. Sameer enjoys working with buyers, assisting them to find the home of their dreams while helping them steer clear of some of the biggest traps homebuyers often fall into. Here are some tips to help you buy like an expert.
1. Not Being Pre-Approved
Being pre-approved has innumerable benefits and should be a no-brainer for
serious buyers. Pre-approval will aid you in determining how much you intend
to spend on your home, and thus which suburbs you should be considering.
In many cases, buyers without a pre-approval letter will not be considered as serious buyers and may not have their offers even considered by some sellers. In the event that a non pre-approved offer is accepted, the uncertainty that a seller feels can easily be translated into a higher sales price.
Begin the pre-approval process as early as possible, for if any issues arise this will slow down the process even further. Some lenders take a long time to issue pre-approval letters and not having it in time to make an offer when it counts, has led to many buyers losing out on the property they were keen on. Being pre-approved demonstrates to sellers your seriousness to purchase and can be very beneficial in driving negotiations on selling price.
2. Poor Knowledge on the Quality of the Local Neighbourhood and Schools
The three most important qualities in determining the value of a property are – “Location! Location! Location!”. Not having done enough research regarding the quality of the neighbourhood you are interested in, and not considering the different factors such as schools, parks and community safety, which make neighbourhoods unique and affect the potential resale value of a property, can lead to costly errors such as overpaying or missing out on good opportunities when making a purchase.
3. Passing Up “Non Turn-Key” Homes
Turn-key homes may generate much buyer interest, and usually will sell to the highest bidder for top dollar. However, having the vision to look beyond minor issues is often the key to purchasing a home at below market value, likely ensuring excellent value for the successful buyer.
4. Buying in a Rush
It is of utmost importance that you fully understand the market and feel comfortable at every step of the home buying process, before you seriously consider putting in an offer on a home. To make a successful purchase that you will be happy with for years to come, and to avoid the dreaded “buyers’ remorse” that pangs many buyers who rush through the buying process – you will need to have a good understanding of the local market in addition to viewing enough homes to sufficiently hone your own housing criteria. Buyers who are in a rush to make a purchase will usually make many costly mistakes in their purchase.
Job transferees and buyers who have just sold their homes and need a new one, are more likely to be in a hurry to purchase and therefore run the biggest risk of overpaying for a property. In such cases, buyers should consider the option of renting for a short period until they can familiarise themselves with the local market, neighbourhood and other amenities, to avoid paying too much for a property. This is where Sameer comes in, guiding buyers through the process of finding a home of great value.
5. Focusing Too Strongly on the List Price
A listing price is not the most effective way to judge a home’s worth on the Southside. Doing so may result in costly mistakes and lost opportunities for buyers who may either undervalue with a low listing price, or overlook overpriced homes as financially out-of-reach. The truth is that often homes will be under-priced as a strategy to attract a multitude of buyers, only to sell for well-above its listing price. In this situation, being too focused on the list price could cause buyers to feel that they are over-paying, when that may not necessarily be the case. The best measure of a home’s value is what comparable homes in the area have recently sold for, not the price at which a property is initially listed.
6. Submitting a Poor First Offer in a Multiple-Offer Situation
More and more homes in today’s market sell with multiple offers presented. Under these market conditions it is important for buyers to resist the temptation of putting in a low first offer, hoping to leave as much room for negotiation as possible. This may work well in a buyers’ market when you are the sole buyer vying for the property. However in a multiple-offer situation the listing agent will only consider the highest offers.
Many times, because it is presumed that serious buyers will put in their best offers to start with, the listing agent and sellers will accept the highest bid without issuing any counter offers. Alternatively, the listing agent and sellers may only counter the two best offers, politely thanking the others but no longer allowing them to be active bidders. Therefore putting in a first offer that is closest to your reservation price for the property is best, as second chances may not be guaranteed.
7. Not Tailoring Your Offer to the Seller’s Needs
Finding out what the sellers are looking for and then to a certain extent, tailoring your offer to meet the seller’s goals can be very beneficial. In a buyers’ market, doing so will allow you to purchase the property for a lesser amount. In a sellers’ market it will make your offer stand out from the multitude of other offers presented.
Besides the obvious goal of the seller being to get the highest price possible, other goals may come at no expense to you and should be considered if it will make your offer more attractive or help lessen the sales price. As one example, if a seller is set to purchase a new home on a fixed date and requires the funds from the sale of his house to close on the new house, then any offer that can provide a quick settlement on time will surely win over other offers that cannot, even if they come in at a higher price.
Sameer assists buyers by communicating with sellers or their representatives, to obtain some insight into what the seller’s situation and motivations are for selling and then ensuring your own funds are ready to go to cinch the deal.
Contact the Sameer Gutta Team for a Complimentary, Obligation-Free Consultation today
EIGHT MILE PLAINS
LOCATED AT HARCOURTS BEYOND, 3/532 KESSELS RD, MACGREGOR, QLD 4109. © 2020 SAMEERGUTTA.COM. ALL MATERIAL PRESENTED HEREIN ARE INTENDED FOR INFORMATION PURPOSES ONLY. WHILE THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO SQUARE METREAGE, ROOM COUNT, NUMBER OF BEDROOMS AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS, SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT OR ZONING EXPERT.