Shopping for a new home is an emotional experience. It’s also time consuming and comes with a myriad of details. Some buyers, however, caught up in the excitement of buying a new home tend to overlook some items. Their home purchase turns into an expensive process. These errors generally fall into three areas: - Paying too much
- Losing a dream home to another buyer
- Buying the wrong home
When you have a systematic plan before you shop, you’ll be sure to avoid these costly errors. Here are some tips on making the most of your home purchase: Making an Offer without sufficient information
What price do you offer a seller? Is the seller’s asking price too high? Is it a deal? Without research on the market and comparable homes, you could lose thousands of dollars. Before you make that offer, be sure you have researched the market. A professional real estate agent can offer a Competitive Market Analysis (CMA) on the value of a home, based on previous comparative sales, market conditions and current offerings and condition of the home. Without knowledge of the market, your offer could be too much. Or worse, you could miss out on a great buying opportunity. The housing market is replete with both buyers and sellers seeking uinrealistic prices, to the detriment of all - a fair price will usually win a deal - trying to "pinch" a deal either way rarely succeeds Buying a mis-matched home
What do you need and want in a home? Sounds simple. Yet, clearly identifying your needs and bringing an objective view to home shopping, leaves you in a better position. Sometimes, home buyers buy a home that is too large or too small. Perhaps they didn’t consider the drive to work, the distance to school, or the many repair jobs waiting for completion. Plan ahead. Use your needs list as a guideline for every home you view. Building & Pest Issues
For approximately $300 - $500 a professional inspector will conduct a thorough inspection of the home. This way, you’ll have an idea of the cost of future repairs and likely pest issues. Make the final contract subject to a thorough report, but don`t be unrealistic in terms of outcomes - liken it to an RACQ report on a motor vehicle, expect to see defects, but look for the big issues that a layman could not be expected to identify, don`t focus on minor issues and lose track of the big picture value. Be aware that on the Sunshine Coast, located in the sub tropics, the presence of termites in the grounds is prevalent and not something to be necessarily alarmed about - the key issue is the protection of the property. Remember that you are usually not buying a brand new property, so expect defects commensurate to age and price which the seller will say has been factored into the price. Shopping without pre-approval
It only takes a short time to get financing pre-approval. When you are shopping for a home, this gives you more power. A seller is more likely to consider an offer from a serious buyer. In making an offer, a good deposit shows financial credibility, try to look at this through the sellers eyes, because once a contract is signed, the buyer holds all the cards, so a seller needs assurance thta a deal will hold together. Remember additional cost
Besides the funds for the purchase of a home, you’ll need funds for items such as loan fees, insurance, legal fees, surveys, inspections, etc. Rushing the closing
Before you sign, ensure that all documentation clearly reflects your understanding and conditions of the transaction. Has anything been forgotten? Don’t rush. You could lose money, financing or even the sale.
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