Purchasing a new home is a very exciting time for buyers. Unfortunately some buyers are overpaying for their property, which makes it so important to go into a home purchase with set limits and decisions in place to avoid spending more money than you needed to. So here are four costly mistakes to avoid:
1. Not Seeking Professional Advice
Purchasing property is an expensive exercise and some buyers are trying to reduce this cost by not paying for professional services such as a building inspection or hiring a lawyer to review the Sale and Purchase Agreement. While the buyer may save in costs upfront and in the short term, they are putting themselves at risk by not discovering the higher costs they could need to pay later to fix any future issues the property may have.
2. Buying With Your Heart, Not Your Head
It is all too easy to fall in love with a property and decide that you must have it whatever the cost. But in reality you need to make sure that the house fits all your requirements, including your budget, ideal location and room sizes.
3. Not Researching The Property Enough
In a competitive property market, people have many opinions on what you should do. But your own researched opinion is the one that you should listen to! So it is vital that you research the area around the property you are interested in carefully, as well as the property itself. Checking recent local sales and making comparisons between properties is very important to void paying a higher price than you need to.
4. Overpaying At Auction
When you have decided to go ahead and bid at an auction, it is because you have already completed all your research on the home and decided it is the one for you. However it is all too easy to get caught up in the heat of the moment and pay more than you wanted to, especially with others bidding against you. Once again, you need to set a maximum limit and if it goes over, let the property go.