It’s hard to beat experience when buying real estate, especially in the current competitive environment where buyer interest continues to put upward pressure on prices.
For first-time buyers, this can be challenging as your ambition to enter the property market and desire for a particular property is forced to take a back seat to the practicalities of how much you can afford.
As an experienced agent, many of my clients share with me what they wished they’d known when they bought their first home and began their journey of property ownership.
I’ve distilled those friendly chats into eight key points – and if you’re a first-time buyer, I think you’ll find them really useful.
- Get a great agent – I say this with no shame! If you have a great agent working for you, I have no doubt you’ll find the home you’re seeking. And you’ll get it in the price ballpark, too. Before you start house-hunting, a good agent will set your expectations for what is possible in the current market conditions.
- Ask questions – There’s no such thing as a silly question in real estate. Your agent will walk you through the process and ease any concern or stress you might hold. Buying a property is a much better experience if you feel in control of the process and negotiation.
- Speak up – As a prospective buyer, you should never shy away from raising any issue when inspecting a home that’s for sale. If you ignore what you see, you’ll always have that nagging doubt about the property. If you don’t want to raise the problem directly, ask your agent to do so.
- Set your budget – You should be strict with yourself because overspending on a property can put you in a world of pain for many years. I advise talking to a financial planner to be sure of what you can afford without losing your lifestyle.
- Line up your finances – When an opportunity arises, you want to strike quickly. You may find yourself competing with someone who has already organised their mortgage. So, don’t be that person who lost their dream home because they hadn’t applied for their loan.
- Be prepared to walk – Sometimes, it’s hard not to fall in love with a home but keep everything in perspective. Never enter a negotiation without being mentally prepared to walk away. No matter how much you love a house or apartment, always remember there are plenty of other opportunities waiting for you.
- It’s your decision – It’s a great idea to seek the opinion of others but, ultimately, the decision is on you. Make the choice that feels right for you even if that means ignoring family and friends’ well-meaning advice.
- Buy insurance – Not matter how you cut it, you can never be totally sure about every aspect of a home when you make your purchase. Of course, you’ll need a building inspection, but things can go wrong or break after that’s completed. So budget for home warranty insurance for at least the first 12 months of ownership. It will protect you from any nasty surprise that no one could foresee.
I hope you found these tips helpful, and if I can help you find your first home, please do not hesitate to contact me.