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8 first home buyer mistakes not to make

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8 first home buyer mistakes not to make
Posted 27 April 2016

We all do make mistakes but let's avoid these real estate ones.

1. Getting impatient.

So you have been searching for a house for a while and getting very tired of the endless wasted Saturday's (and for most people it takes a while). Buyer fatigue has set in. If this sounds like you don't fall into the trap of making an offer on a home just to get the process over with. It can become tempting to buy the next property, whether it ticks all your boxes or not. Don't forget this is you biggest single life purchase and it needs to tick the most important ones, or you'll be forever wondering if it was the best decision.

biggest single life

Remember your top home wish-list, take a brief break from looking, then start when your motivation has returned. Plenty of buyers suffer from remorse when the right property comes along a month after they have made an offer on a home that doesn't quite suit. Don't let this be you.

Using a service like Next Address can help with this as you do not have to experience the endless Saturdays. As this service grows and more properties are uploaded you will be able to review homes which truly match your wish-list.

2. Not hiding your emotions.

It's an exciting time buying your first home but let's keep those emotions in check. The main reason for doing this is to remain calm and ration in your negotiations.

By being in control you are able to properly review the home properly, finding any potential issues or concerns. If you have your 'rose colour' glasses on you may miss an important problem, which could cost you financially.

Involving a trusted family member or friend to review the property is a great idea. This third party will help you stay objective and give you un-bias feedback. Always do your homework on a house no matter how much you think it is just perfect for you.

stay objective

At Next Address we encourage you to use an 'offer to purchase' document which can help to be logical and rational in the negotiating phase.

Remember: this is probably your biggest life purchase.

3. Get your finance sorted too late.

So you think you're ready to buy. Have you been pre-approved for a loan? Do you really know how much you can spend and how much you can afford in your repayments? By doing this before you really start looking, you are ready to make a decisive and quick offer which is often a strong advantage. Not having your finance sorted can lead to missing out on a property. Be ready to pounce when you find your dream property.

No finance no offer!

By having the documentation of your loan ready and be in a position to pay the deposit immediately gives you a great deal of power in the negotiation phase. Unconditional offers: which are those with out any conditions, will often win over even higher price offers.

Next Address has two affiliate lenders who provide free advice to you. Use these or your own preferred lenders to be in the best position to make a strong offer when you find the right home.

4. There are always hidden costs: failing to consider these.

Hidden costs include building and pest inspections,stamp duty and legal fees to cover conveyancing and title searches. There may be banking and mortgage broker charges,such as loan application fees,valuation and settlement fees.

The price on the property is just the beginning. Remember to factor in all these costs into your budget.

When renting or living at home, many costs you didn't have to consider. Well, when owing a home, they are all yours. From insurance, council rates, to the cost of ongoing maintenance.

plan carefully

Having the income to enjoy your new lifestyle is just as important as owning your home. Be diligent, plan carefully and you will enjoy your home and not find it a burden.

5.Stretching the budget too far.

This can happen when you don't take any notice of the above 4 points. Let's look at a scenario: you have found your ideal home in the suburb of your choice, it's a little bit more than you wanted to pay. But there is another party keen on it too.

Suddenly you are in a bidding war. You are making offers based on emotion. Not a good place to be.

Finding yourself the proud owner of a wonderful home which increases your repayments to a stressful level is not good for both your physical or mental health. When doing the numbers, make sure you have a financial buffer. Stick to your budget. You will find the right home.

It may be a cliché but a perfect home is only a perfect home when filled with happy people.

  making offers based on emotion

6. Building inspections: don't think they are a waste of money.

Trained building inspectors will save you money in the long run. For only a few hundred dollars they will find problems you won't see - from a hot water service which is just about to die to termites in the floor boards. Once issues are identified, your offer can reflect those found or you can safely walk away before you make an offer.

a home which is just ideal

Problems can range from faulty wiring, shaky foundations, leaky skylights, poor spouts, pest infestations ... On the flip side, your inspection can show a home which is just ideal with minimal issues and just ready for you to make a move and make it your own.

Read more:

7. Be confident to find the right home.

So now that you know what mistakes you can make, you are ready to take the leap and begin the search.

You know what you want. Using a really simple and transparent service like Next Address puts you in complete control. You can change your wish list as much as you want until you are certain of your needs. You are dealing with the home owner, you can ask questions and get answers. No waiting. 

offer to purchase' document 

You can negotiate, using the Next Address 'offer to purchase' document having confidence that the seller can respond immediately. You can make direct offers and be confident of getting an answer quickly.

8 The right price: do your research

Finally getting the right price. There are so many great tools which are freely available to both buyers and sellers which provide great guides to a properties value. Next Address uses APM Price Finder and will provide free reports on properties listed on our site.

Finally getting the right price. 

If you are still in doubt as to a homes true value, then we recommend you use a register property valuer and not a real estate agent. Only registered valuer's are qualified to provide a true and accurate valuation.

Buying a home is an exciting time; enjoy the experience and if you have any questions jump on our website talk button and send them to us.

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