It can be daunting and exciting all at the same time when buying your first home. There’s not much anyone can say or do that will relieve any tensions, though there are some steps you can take that may save you from making an expensive mistake.
When you decide to buy, you must be patient. It doesn’t mean that you must take months or years to purchase a property, it just means, slow down and make sure you have covered everything you need too. It’s very easy to get caught up in the moment and be a little to excited and jump the gun without knowing what you’re getting yourself into. It will also help you negotiate better and not overpay for a property through sheer emotion. Patience is the key to all real estate deals, through patience you can perform all your due diligence and control the negotiation.
Be ready to go before you begin looking. This means, have all your financials in place to be able to put forward unconditional offers. An unconditional offer is the most powerful negotiation tool you have and being able to make an offer that only relies on the three-day cooling off period will put you in the drivers seat of all negotiations. Make sure you stay within your budget and work with your banks towards putting forward offers that are not subject to finance.
When you find the property that is right for you, act swiftly. Now, don’t take this the wrong way, I’m not saying go and make offers five minutes after you’ve been through a property. What I am saying is don’t wait five days to organise a building inspection or a week and a half to see your banks (if you started looking before you had your finance ready). If you have found your property, then begin your due diligence immediately and get yourself ready to put an offer forward. Keep the agent in the loop, but make sure you are not overly keen otherwise you will give them the upper hand.
If these basics are too hard for you to control, then it may be worth investing into a buyer advocate. A trained professional who buys properties day in day out can bring a lot to the table. Experience purchasing will help you cover all the essentials and save you money in the process. Even though there are fees connected to buyer agents’, the few thousand you may spend on them may be nothing compared to the tens of thousands they may help you save in a negotiation. If you find yourself jumping at every property and way too emotionally involved, then do yourself a favour and at least interview a few buyer agents.
There’s no hole proof method to purchasing, but what I do know is that if you always have the upper hand in a negotiation, you will at least know you’ve given it your best shot. Real estate can be blown out of proportion because there is so much emotion involved and that’s what agents thrive on. Records broken and properties selling well above reserve prices are not manufactured by agents, they are produced by buyers who lost control of their emotions. So, either contain them or hire someone who will.
The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.