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How not to be ripped off when buying a home

Nguyen Real Estate Landscape

For most people, buying a property is one of the most expensive transactions you’ll ever make.

Unless, of course, you decide to spend $800,000 on that limited edition Ferrari you’ve always dreamt of.

Real Estate Agents are not always to blame for ridiculous prices in the property market. Yes, there’s no arguing that Real Estate Agents take the reigns as one of the least favourable and trusted reputations in the world – and in some cases, for good reason. However, many buyers make ill-informed decisions when buying property, and unfortunately pay far more than its market value.

Here are some points to ensure you don’t pay a premium for your next property.

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Do your homework

Far too many buyers are paying a premium for their property, due to a lack of understanding of the market in their area.

No one completes a university assignment without a plan, research and advice; buying a property should not be any different.

It is important that you understand how the market is performing in the area you are looking to buy, so that you have a good idea of what a property is worth in current market conditions.

If you are looking to buy a three-bedroom weatherboard home on a quiet street with a reasonable-sized backyard, looking into what similar homes are selling for within a two kilometre radius will assist you in determining what you should be prepared to pay for the property.

Many factors also influence the price of a property irrespective of its size and features. For example, some houses may achieve a lower price due to its location on a main road, whereas some may achieve a higher price due to its development potential.

Knowledge is the key, and having a good grasp of sold property prices in the area will ensure that you are paying close to market value as possible.

If it’s too good to be true, it probably is

Underquoting is a practice that has tarnished the reputation of Real Estate Agents, yet has painted agents trying to do the right thing with the same brush.

Underquoting laws have been introduced in mid-2017 in order to restrict the ways in which agents can market a property, in an effort to stop the misleading of buyers by deliberately marketing the property in a way that creates more interest and instigates competition. In the new laws by Consumer Affairs, agents are now required to produce a ‘Statement of Information’, which details up to three comparable properties sold within six months, and within a two-kilometre radius for metropolitan homes.

In a recent article by Domain, whilst the intent of the laws are to bring reform, there are loopholes that still allow misleading in the marketplace, particularly in an Auction process when the vendor’s reserve does not have to be decided until the morning of the Auction, and does not have to be within the estimated selling range advertised through the campaign.

Always review the Statement of Information, and ask the agent how the properties listed are comparable. The most comparable sales in the area aren’t always listed, therefore question everything before you take the advertised selling range as gospel.

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Don’t wait until the spring market hits

The spring selling season is one of the most anticipated times of the year in the property world; particularly amongst home sellers looking to sell their home when the sun is blazing, skies are blue, and gardens are lush green.

For this reason, the property market is at its peak naturally during the spring and summer with more properties for sale, compared to winter as the market begins to slow down and stabilise.

Many buyers choose to wait until the spring selling season to purchase, as there are many more opportunities to find the perfect home in a saturated market. However, at Nguyen Real Estate, we meet buyers regularly who walk away disheartened, as the influx of properties has also resulted in increased competition. Furthermore, buyers we have worked with have missed out on their ideal homes and have settled for less, as the market has moved so rampantly that they have been pushed out of the market.

Winter is a great time to buy a property, as there are not only fewer properties on the market, but also less competition due to low demand. Here are seven more reasons why to buy a property in winter, and skip the awaited spring season.

Wear your heart on your sleeve

Too often, we see buyers who have spent far more than they originally budgeted and anticipated for.

One of the most common mistakes we see, are buyers who become emotionally attached to a home, only to be disappointed when they are outbidded by someone else. Emotional attachment is contributing to high property prices in a big way, particularly in an Auction process as buyers make snap decisions based on their feelings.

Emotional attachment will not only cost you by paying too much for a property, but will also cloud your judgement, as you focus on one or two properties, when there are likely more in the marketplace that suit your needs.

So, guard your heart and don’t get too close.

At Nguyen Real Estate, we pride ourselves on providing a level of service that prioritises your needs and goals in real estate. If you are currently looking for a property, please contact us today.

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