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5 mistakes to avoid when buying a new homeMortgages April 20, 2014 - 1:15 pm No Comment
Buying a home can be both exciting and stressful. On one hand, there is nothing like achieving ownership of your own personal space. It is the area that you will create dozens of memories and maybe even build or grow your family. On the other hand, it is stressful because in many respects, buying a home can leave you in an unpromising financial situation. However, this does not need to be the case. While most homebuyers make serious negotiation errors during the process of buying a home, these mistakes can be avoided. Below you’ll find the top 6 mistakes that you should avoid. This way, you can be sure that you are getting the best deal for your dollar.
Pre-Purchasing Home Inspection
One of the biggest and most serious mistakes that homebuyers make before signing on the dotted line is opting out of getting a professional to do a thorough home inspection. Naturally, when purchasing a home, homebuyers will also allocate funds towards remodelling rooms and new furniture. However, without a pre-purchasing home inspection, the new homeowner ends up finding that there are dozens of structural issues with the home. You can avoid this issue by hiring a professional to conduct a pre-purchasing home inspection.
Another common mistake that homebuyers make, especially when purchasing without a real estate agent, is that they will easily overpay for a home. While not doing a pre-purchasing home inspection leads to overpaying, so does not reviewing the pricing of homes in the area. Therefore, to make sure you aren’t being overcharged, do some research and review the prices of homes in the area. It will give you an idea of range you should be paying in and give you negotiating power when talking with the seller.
For some people, masking their feelings can be especially difficult. However, keep in mind that it is crucial that you remain neutral when viewing a home. Showing enthusiasm and love for a home during a viewing or through the negotiation process can spell trouble. Usually, the seller will notice your feelings and gain the upper hand, which will result in you paying more.
One trap that many homebuyers fall into is to not question why the seller has put their home in the market. While in some cases, the seller wants to move elsewhere, it can also be the case that there are other issues. Therefore, in order to protect your investment and add to your negotiating power it is a smart move to ask why the seller has their home on the market.
Keep Your Options Open
Sometimes, home sellers notice when a homebuyer is desperate to buy a house. This scenario immediately increases the seller’s power, and reduces your negotiating chances. Also, you do not want to put all your hopes into one home. Thus, when searching through homes, it is best to keep your options open. Look through a number or properties and make a list of your favourites. This will help you keep calm when facing negotiations with a homebuyer and increase the chance that you’ll get the property that you want for a fair price.
Brad Porteus is the Managing Director of BSP Construction Consultants, investment property inspection specialists in Perth, Western Australia.
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