Five New Year’s resolutions for home buyers: Patrick Bright

Five New Year’s resolutions for home buyers: Patrick Bright
Five New Year’s resolutions for home buyers: Patrick Bright

For home buyers looking to purchase in 2015, it may seem like you’re facing an uphill battle with rising house prices, according to EPS Property Search director Patrick Bright.

He warns against falling into common traps when purchasing, but also notes that it is crucial to set yourself some goals early on in the property buying process.

“There are numerous pitfalls that can take their toll financially as well as emotionally, particularly for those prospective buyers who have been searching for an ideal property for many months,” warns Bright.

He explains that these could include letting a home slip through your fingers due to indecision or paying too much.

Here are his five resolutions for home buyers to make this year.

  1. Don’t procrastinate

    “Probably the biggest mistake buyers make is procrastinating,” explains Bright. 

    “If you dither you’re increasing your chances of missing a great buy. As long as the property you have found meets your list of requirements and you’re confident you’ve seen enough comparable properties (ideally around 100) so you know where value sits then don’t hesitate. More often than not, great deals don’t last long especially in a rising market.”

  2. Search with finance approval

    “Searching without finance approval can only lead to disappointment. It’s really frustrating to watch the home you want to buy go to someone else whilst you’re arranging your finance. In any case how do you know how much you can afford if you haven’t got finance approved in writing?”

    He warns against signing a contract without finance approval, and the risk of losing your deposit if a bank then does knock back your loan.

  3. Know the area before you buy

    He warns that many people pay too much when they don’t know the area well. The solution is to research thoroughly.

  4. Don’t listen to family members or friends

    While acquaintances can be well intentioned, their advice may not always be sound, he warns.

    “Many people have such a profound fear of failure that they’d rather you did nothing than make a mistake but if you’ve done your research properly then you should have nothing to worry about.”

  5. Don’t make a fed up purchase

    Even if you have been searching for a long period of time, do not settle and buy the wrong thing.

    “They’re tired of looking so they buy something that partially resembles their needs list and a year or so later they want to sell it,” explains Bright. 

    “It is very expensive to get it wrong, not to mention all the time and effort wasted going through the process of buying and selling which will cost you around 10% of the purchase price. For a fraction of that cost you can get some professional help and more than likely buy a lot better for a lot less than you would if you handled the negotiations on your own.”

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

Tags: 
Investor Tips

Comments

Be the first one to comment on this article
What would you like to say about this project?