10 Aug First Home Buyer Fails: Why you’re better off not doing it alone
Buying property is a stressful process, especially if you don’t know what you are doing.
You’ll have family and friends telling you to do what they think is right, property agents trying to squeeze as much money as possible out of you and lawyers confusing you with technical mumbo jumbo.
With all of this going on, making the right decision for you and your personal situation is tough!
Buying your first home is a huge financial commitment and mistakes can be costly. The best thing you can do to save time and stress is seek help and have one professional navigate you through each stage.
If you do choose to do it alone, here are some of the most common pitfalls :
- Being rejected finance– Rejection is tough. We can’t stress enough the importance of using a good mortgage broker, someone who knows their stuff and is going to put the hard work in to negotiate with lenders on your behalf. Trying to approach the banks on your own is stressful, why make it harder for yourself?
- Spending more than you can afford- Shopping for your new home is exciting. So exciting it’s easy to get caught up in the aesthetics of a property. You’ll also have real estate agents playing on your emotions, pushing your limits in negotiations trying to get you to spend that little bit extra. Know your budget and stick to it. It’s difficult to think ahead but even a few thousand dollars extra could end up costing you more in the long run!
- Giving up because it’s too hard– There’s a lot to consider when buying property. Because you’ve never been through any of this before things can get complicated, frustrating Costs for things like conveyancing, building inspections, insurance will start to add up. You may feel stressed and
- Choosing the right builder for your land type – Many project home builders prefer only to build on a slab with a flat block yet depending on the location you want to build, you may choose land that is sloping or a little more challenging to build on. There are two scenarios that can play out here:
- You build a traditional slab home on a sloping block which includes cut, fill and retaining
as well as additional piering and plumbing requirements and this option can be costly;
- You chose a builder that can build a home to suit the block, that is, the home is designed to work with the contours of the land and includes a mixture of building methods
- Not choosing a builder that can offer a fixed price contract- This is a big one. Builders are competing with one another for market share and their marketing is displayed as such to entice you through the door so that they can take you off the market as soon as possible so you stop shopping around. This can often mean the price that grabbed your attention is not always the price you end up with once you’ve made any adjustments to the plan, colors selections, upgraded inclusions and site specific costs have been taken into account. With a fixed price quote and contract, these costs have already been taken into account in presented upfront