As real estate professionals, it is frustrating when we are faced with a disappointed buyer who failed to secure their ideal home simply because they hesitated to put forward an offer.
This is made even more frustrating for them when they see the property sold for a price they would have been prepared to pay.
The times we see this happen most often is during a soft market, such as the market we have been experiencing in Perth over the past couple of years.
So we thought we would share a few common traps to avoid when buying property.
Assuming the market will keep going down
If you wait until you think the market can’t go any lower, you can almost be guaranteed that it will rise and you’ll end up paying more. You have a window of opportunity when the market is calm so this is a good time to make offers. The only sign we will get if the market is at its lowest point is when it starts to improve. By then it’s too late, as the market will have begun escalating.
Waiting for a price reduction
This is a very common mistake. Many properties are sold before they have an advertised price reduction because somebody made an offer and the owner accepted it. The offer is usually below the asking price, but you won’t see it or get a chance to put your offer in. The bottom line is, if you are interested in a property, submit an offer. Otherwise you will miss out to the person who steps forward. Homes are sold to people who act decisively.
Waiting until you’ve found the perfect home before you list your own home on the market for sale.
It is important to be ready to buy if you’re serious about securing the perfect home. This means having your own home sold or listed on the market for sale so you will have ready access to funds for a deposit on your new home.
If you love it, make an offer. Don’t be concerned that there could be something better. In our experience, many buyers who like to shop around in case they find a better home end up back at the first home they looked at, only to find it has sold in the meantime.
Failing to secure finance
Shopping around for finance and obtaining finance approval takes time. To avoid disappointment and know, with certainty, how much you have to spend, our best advice is to secure your finance early (or at least approval in principle) if you’re serious about buying.
Failing to register your details
Some homes these days are listed for sale without being advertised at all (we talked about the Silent Sale method in last week’s newsletter). Registering your details with us, including what you are looking for in a property, allows us to alert you to all the properties (advertised and non-advertised) that match what you’re looking for.
Remember, you could be competing with many other buyers for the same property, especially when the marketplace is moving quickly. Being prepared allows you to act decisively. If you love it, make an offer.
If you’re thinking about moving, contact us so we can help ensure you don’t lose the home you love to someone else.