Research requires effort.
Opening the weekend newspaper or scrolling through online listings and picking a property based on the advert, price or agent, could be costly.
So, put on your detective hat, get out your magnifying glass and look at the evidence. Sales evidence, land valuations, listing history, house design and location are all important when considering the value of a home.
Once you have done your research and decide to make an offer on a property, donâ€™t be rushed and be sure to give yourself protection when completing the offer (a legally binding contract).
Firstly, make sure you get to thoroughly know sales evidence in the suburbs you wish to buy in, this is essential in order to determine the over-priced properties that will require extra negotiation to achieve a realistic price and also highlight any well-priced properties for your consideration.
It is a good idea to try and establish the price of the land the house is built on as a starting point for estimating the value of the property. Even though a home may appear to be much better value than another, it may in fact be overpriced because it is on a much cheaper block.
Also be on the look out for advertisements that say FIRST TIME OFFERED. Read the fine print, it may say...at this price. It could have been on the market for 6 months, or they have just put the price up or down.
There are many factors influencing your decision as a buyer. You need to decide what the most important criteria are for you. Some may include:
If you are buying or investing for capital growth, it is often better to buy the worst house you are prepared to live in but in the very best location you can afford.
When making an offer be careful about making offers not subject to finance or the settlement of the unconditional offer on your own home. Also ensure that you request checks on significant defects, termite damage and structural soundness.
When dealing with a sales agent, be careful if you are advised there are other offers, it is a common ploy to get you to put in an offer for fear of missing out. A good protection measure is to ask that- they show you the rejected offers if your offer is accepted.
Remember, if you need assistance as a buyer, just ask. We are always happy to assist.
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