3 November, 2014 / Category: Blog
If you’ve made the decision to take the leap from renting to owning your first home, it can be easy to become distracted by the current display of outsider opinions. From interest rates and mortgages, price and location, most of us have something to say about the current real estate climate.
As a result, prospective first homebuyers are confronted with a lot of convoluted commentary about the market they confront.
But there are steps that every first homebuyer can take in order to make the process more simple and stress free. By remembering a few important things before investing in your first home, you can be assured that you have made the most informed and sound decision.
Know what you’re up against
Be mindful that the real estate agent is working for the vendor; not for you. Agents have also been selling homes for a lot longer than you have been buying them, and as a result, are likely to be more skilled in the art of negotiation. While it might seem unnecessary, hiring a professional to represent you increases the chance of a deal working in your favour.
Beware of under quoting
In the game of real estate, quote prices are often a vast misrepresentation of the property’s expected sale price. These estimates are set in place by agents to bait you through the doors, and rarely reflect what the home will sell for at auction, or during negotiations.
According to an analysis of recent auction results, property prices for popular postcodes in Melbourne are routinely under quoted by more than 40 per cent of the final auction price. First homebuyers need to beware of this tactic.
Doing your homework before you buy will help you to understand the market and be a better judge of property sales prices, decreasing the chances of you being led astray.
Affordable homes are in hot demand
For many first homebuyers, a property’s selling price is the driving factor in their search. Many seem to believe that the lower the price, the better the value, and the more likely they will be to make a profit when they sell. But even when the price is right, the investment may be wrong.
Today, buying a good affordable home is far more difficult than purchasing at a higher price. At the lower end of the price spectrum there is not only greater competition, but also greater options, many of which will not perform well as subsequent investments.
While an affordable home may save you money in the short term, it may not make you money in the long term.
Your first house is more than a home
The home may be where the heart is, but if you play your cards right, your home could be so much more. Given that the average Australian moves house several times before retirement, it’s unlikely that your first home is going to be your last. For this reason, it’s extremely important to get your first home right. Just as important as the size of the kitchen, is the potential the home has to make you money in the future.
Listen to the right people
As with any major life decision, friends and family will usually have something to say about you buying your first home. But though they mean well, they may be giving you the wrong advice. When your parents bought their first home things were probably quite different. Likewise, while your friend’s recent property purchase might have worked our in their favour; it did not make them an expert. When buying your first home, knowing who to listen to is often half the battle. But there are people who can help you cut through the misguided opinions, and offer you more expert advice.
Invest in an informed choice
While it may be more difficult to fund professional advice when buying your first home, the benefits of professional guidance can save you a lot of grief. Whether it’s offering insight into price and location, or securing your dream home with minimum fuss, buyer’s advocates always have your best interests at heart. Buying your first home is an emotional and financial investment; a buyer’s advocate will add the most value to your purchase, and to your peace of mind.
And that’s exactly why we’re here.