Buying process

Don’t be pressured by the media

Like that message “House listings have plunged in the past month and would-be buyers are being forced to wait around for suitable properties to come on the market” the media trigger emotions. You can conquer almost any fear if you take time and use knowledge in your decision making process. Remember, fear doesn't exist anywhere except in people’s mind.

The house buying process

Browsing the property market in your area of interest helps you to get started and gives you an overview what is on the market. Talk to real estate agents, visit few open homes and complete your wish list. Looking at houses only by browsing the Internet will give you a wrong impression about selling culture and quality but gives a good indication about sales price and seller’s expectations.

You found a house that meets your “must have features” and you consider making an offer; the next step is talking to your lawyer about covering your risks. At this time you as buyer have to work out with your lawyer the clauses to be included in your offer about finance, building inspection, city council’s records and the timeframe for the settlement process.

The negotiation process after receiving the answer to your offer until your offer has been accepted is mostly controlled by your lawyer. If you are experienced, you will do it yourself – but under all circumstances don’t be disappointed when the deal fails at one stage and you miss out. If you look for your dream home, you’ll need to exercise that process several times, don’t be discouraged, it is part of the game.

Common pitfalls when buying a property

1) Relying on the real estate agent, be certain he/she works for the vendor (seller)

2) Not taking independent advice can lead to unexpected trouble when walking blindly into a situation like not knowing risk areas or neighborhood.

3) Lack of due diligence: It is very human to value a property based on appearance. Be on alert over-painted problems will surface and can be costly. A house that looks messy might actually be structurally sound.

4) Timing and late settlement penalties: I experienced twice a delayed settlement. In one case broker and bank did not get the paper work ready on time and in the other case the vendor failed to discharge the mortgage.

You might plan some extra time into the settlement schedule. Don’t let “late settlement penalties” spoil the pleasure moving into your dream home.

5) Paying too much: Remember the market price is what the buyer is willing to pay. It is all too common situation that the buyer gets pushed by the seller’s agent. Even when buying your family home real estate needs to be considered as an investment for supplementing retirement or something to pass on to future generations. A vision about the long term is required when paying above the market price or to wait for a better opportunity.

The best time for buying a property depends on you, whether you are in a good position to buy your family home when you need to or to invest in properties. Not saying that unemployment, interest rates, market values etc are not important, but how to spot opportunities in any market is part of the investor’s blog.

To own a family home the best time to buy was yesterday! Don’t miss the opportunity today or be one of the unhappy renters. Always remember, don’t be misguided by headlines of the media, living in a lucky country comes with costs while currency and inflation push up price of goods and costs of living will rise if you like it or not.

Go to the next page (What and where to buy?)

Please feel free to recommend this blog

on Facebook, Twitter, or Google +1

---------------

Watch out for the best time for buying a property, the buying process and common pitfalls when buying a house, read more about timing, market price and settlement