Buying property successfully needs a calm, patient approach when you're in a seller's market like we find ourselves today. Median house prices rose almost 18% last year – the fastest pace since 1999 – because so few properties were up for sale because of sellers' concerns about the pandemic.
Now, with confidence strong in 2022, both sellers and buyers are returning to give our local real estate scene a big boost. For buyers, it can feel pretty tough out there. There's a lot of competition for property, but it's essential you keep your cool. Here are a few mistakes you'll want to avoid.
Bidding beyond market value
No matter how much you love a property, never make an offer beyond its market value. Buyer's remorse is real even in real estate, and there's nothing worse than cursing your decision to pay too much. It may mean you struggle to secure finance leaving you with a hefty check to write. You're better to wait for the next property to come along, even though that may seem hard to do.
Seeing into the future
Those who do offer over the odds often justify their action by suggesting that the future, medium-term value of the property will dwarf the higher amount that you're willing to pay. Be aware, the value of nearly every property has this element of thinking already built into its pricing. At the end of the day, all I can do as your Realtor is advise you and lead the negotiation. Ultimately, the buck stops with you and I want you to be happy.
Dropping the appraisal
Please don't get a loan and then dive into the market without understanding the value of properties that are similar to the one you've set your heart on. Value is not based on what you can afford and like. It's amazing how many times I hear about folks rushing into an offer for fear they might miss out before they really understand the lay of the land and what their money could really buy them.
Financial feet on the ground
Know what you can afford. It's as simple as that. If you want to put in a big bid, take a pause and ask yourself how you're going to make the repayments and what lifestyle sacrifices you may have to make. If your lender refuses to help out, you may lose the deal and your deposit.
Waiving inspections
Never waive your inspections, not even to win the seller's commitment. The seller might be very happy to oblige, but you'll never know you bought a termite-infested money-pit until it is too late. And then the money and time you saved on the inspections will be more than taken up with remedial work.
