When buying property to invest in, it’s important not to slip up and end up paying more than a property’s worth, or worse, ending up with a lemon. Using a buyer’s agent can help alleviate these problems.
The five common mistakes made by buyers that a buyer’s agent can remedy are:
1. Loving a property too much
Becoming emotionally invested with a property can cause a buyer to rush in and not think a purchase through.
“Once a buyer starts making decisions with their hearts instead of their heads, that’s when they pay too much for a property, overlook important issues, and desperation kicks in, clouding judgement,” said Darren Piper, director of Universal Buyers Agents.
According to Mr Piper, a buyer’s agent allows a buyer to look at a property through the eyes of a third party, looking for as much of an objective view as possible.
2. Going in with an open wallet
When you find the perfect house, it is also important to know where your limits are from impulsively spending too many thousands of dollars more, or falling victim to a real estate agent persuading you into buying outside of your price range.
“This is when a buyer will fall in love with a more appealing home that is just too expensive, and … desperation … kicks in,” Mr Piper said.
Buyer’s agents, like mentioned previously, can assist in looking at a property as objectively as possible to show what that property is worth, but can also help negotiate prices down to a number that you have in your wallet.
3. Going in with a lack of research
Even though a property may physically be up to code and suits you completely, committing to a purchase without properly understanding the area can be just as risky, such as median dwelling values, council regulations, nearby schools, current or future developments, public transport access and local crime rates.
Mr Piper recommended to find a buyer’s agent that can find out all this data for you and determine whether a great house is located in a lemon or a suburb or not.
4. Going in unprepared
While a smart property buyer knows to have their finances in order before purchasing a property, there can still be some things that have slipped their mind. Using a buyer’s agent can help buyers ensure that everything is ready for the purchase.
“A buyer’s agent makes sure everything runs smoothly and is legally sound. They have extensive experience in the industry, which means there will be no shocks or last-minute surprises,” Mr Piper said.
5. Not thinking about additional costs
Just like with many things in life, there are always hidden costs to consider with the purchase of a property, more so than the property itself.
These additional costs include building inspections and reports, strata reports, pest inspections and council inspections.
Further, after purchasing a house, buyers also need to consider insurance, moving costs (if required), inspections, stamp duty, council rates and transfer fees.
Buyer’s agents can keep watch costs on top of these hidden fees, as well as any that may appear down the line, and a personal contact list that they can tap into to address any issue that may occur.