Mistakes Home Buyers Often Make Steps to Avoid Them

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Mistakes Home Buyers Often Make Steps to Avoid
Them
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Buying a home is not like purchasing candy from a
shop. Although the excitement in both cases is
extreme (ask a child), but you can neither
compare the home buying process, nor the
experience with purchasing a candy. The process
of buying a home can be tiresome especially for
those who deal with it all alone. But with a
real estate agent in Cranbourne, the home buyers
will find the whole journey an easy and tireless
ride. If you are a first-home buyer, maybe you
feel that finding the right real estate agent is
also a hectic task. But once you get along with
a real estate agent of your choice - the one who
is able to meet your needs, the whole journey of
buying right from searching to finalizing will
become a cakewalk. Here in this blog, I will take
you through the mistakes that most of the home
buyers in Cranbourne do while buying a property.
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Not Conducting Proper Research
Many buyers may end up buying in a hurry or many
may even make decisions emotionally. This
happens due to a lack of research. It is
important for every buyer irrespective of the
needs to conduct thorough market research,
understand the familys finances and then look
out for the property. A wise home buyer will
analyze the assets, decipher debts and get
pre-approved for finance. These steps are to be
done before jumping into the property hunt. When
conducting research make sure you look into every
aspect of the house. For instance, neighborhood,
and location. Even before looking at the home,
one must look into the factors like safety, and
peace. So, remember, when you are buying a house
you are also buying the location. If you have
kids, it is important to look if there is a
school nearby, a transport facility, crime level,
and the upcoming zoning issues. See if the
suburb is ideal to live with family or not.
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Getting Influenced
Look into your own needs. People often get
influenced by the market more than their own
needs. The real estate market also has its own
time. For instance, there will be times when the
property market will suit the needs of buyers and
the time which will only suit the needs of the
sellers. So, look into these factors before
buying a property.
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What is Buyers Market? In the buyer's market,
real estate is more affordable. Reason - Supply
exceeds the demand. It means there are more
homes than buyers on the market. In the buyer's
market, real estate prices decrease, and homes
linger on in the market for a longer time
period. What is Sellers Market? This market
condition is opposite to the buyers market. In a
seller's market, demand exceeds supply. It means
the vendors can usually sell their properties
quickly and that too at a favorable price. Since
the demand rises, in the seller's market the
prices rise. The real estate market moves in
cycles. It is suggested to wait for the right
time. Selling property when prices go low will
only be a great gamble with the familys
future. So do not get influenced by the media, or
be tempted to make a purchase in hurry.
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Choosing the Wrong Mortgage
To put you in the best negotiating position, it
is critical for you to get your loan preapproved
before you go house hunting. Find out how much
are you willing to spend. You cannot just go to
the banks website and see how much to borrow. Do
not assume about the loan amount. Be sure and
then jump to the first step of buying a home. It
is important to pick your finance package
carefully and prepare a budget beforehand. Also,
you do not have to rely only on the bank. You
can also go to an independent finance broker who
has access to a range of lenders and finance
products.
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Moving Ahead of the Set Budget
You are looking for a home or a property - means
a huge amount will be involved. You will invest
the savings of your whole life and at the same
time, you will be planning for your future. So,
it is suggested to stay within the budget and buy
your home. An expensive property may look more
appealing but there is no point in going out of
the budget and struggling to manage the
finances. If you do so, it will lead to the
following Delay in buying a home/property
Difficulty in finalizing the deal It may even
confuse the real estate agent May even lead to
losses Above all, it will derail your finances in
future Spending more than you can sensibly afford
will leave you exposed to potential financial
shocks like increase in interest rates.
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Making Purchase Based on One Factor i.e.,
Price Taking a buying decision purely based on
the price will do no good unless the lady luck
smiles on you. If you like a house, but cannot
afford it, please move away from the deal. Also,
if you like a property and all the factors are in
your favor, including price then give that deal
a heads up. Finalizing the Deal Based on Sellers
Price If the seller agrees to offer the price you
expected, you may end up making a decision
emotionally, ignoring the practical aspects. so,
it is advised not to depend on what the seller
offers. Instead, conduct market analysis and ask
your buyers agent to step in and finalize the
deal. The market analysis will reveal the recent
asking and sales prices of the homes in the
neighborhood. A wise home buyer will be able to
make an appropriate decision. Signing the
Contract Without Understanding This happens in
hurry. Do not ever sign any contract given by a
real estate agent without understanding its
clauses. See if your interest is protected and
there is no sort of embezzlement. Do not shy away
from asking queries from your real estate
agent. Underestimating the Actual Costs of Buying
a Home Many homebuyers fail to budget as per the
total cost involved in buying a home. Most of the
time, they even fail to recognize the hidden
costs, which pop up in the middle of the buying
process. Such costs include stamp duties,
valuation costs, mortgage insurance, and loan
application fees. Apart from these, some
unexpected costs may also arrive whenever you
move into a new home.
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Not Conducting Inspections
Trusting blindly and not conducting inspections
is also one of the biggest mistakes most people
make. In fact, if you are going solo on the
ride, it may become exhausting too. So, it is
important for you to engage a competent and
independent real estate professional who can
conduct timely inspections of your new
home. Remember the inspectors are trained and
can find faults easily which you may not be able
to find with a naked eye. Look for major faults
only but do not let minor faults trouble your
thoughts too much. If you do not know how to
interpret the report, then it is suggested to
have a chat with the building inspector and ask
questions such as - would you buy this property?
If you get a positive response, it means you can
also go ahead. But if you are doubtful, then,
stop!
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Misunderstanding Real Estate Agents

• Many people are afraid of hiring real estate
  agents. They also interpret their role in the
  wrong manner. Real estate agents are friendly
  people and when you are dealing with a matter of
  property, you will be spending most of your time
  with your real estate agent. While working with
  them, you will understand the role of a buyers
  agent and the role of a sellers agent.
• You will also get to know that the selling agent
  cannot work in the interests of both the buyer
  and the seller. But it is only after you start
  talking to the real estate agent that you will
  get to know about their personality, their
  roles, and responsibilities in a day.
• If you have come across a real estate agent who
  is not interactive and is not available to you as
  and when you require, just leave that agent
  because a good real estate agent will strive to
  give you the best - in terms of information and
  the price you deserve.
• Above are some of the most common mistakes
  homebuyers make.
• Hopefully, all the above points will help you in
  avoiding mistakes that affect the final
  decision-making. Whether you are an experienced
  investor or you are a beginner, you might need an
  advisor i.e., a real estate agent by your side
  to keep you updated with the market conditions
  and look at the holistic approach to wealth
  creation.
• For any kind of real estate needs, contact the
  best real estate agents in Cranbourne

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Get In Touch
PO Box 137 Lynbrook Victoria 0425843786 carlton_at_
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