When buying a new home there are several ways in which a purchase can go wrong.
If you buy with the theory that if you needed to sell quickly, you could sell, for a fair market price, then of course, it will minimise any loss in selling so quickly.
So only buy at “fair market price” and not by fear of missing out (FOMO)
Ideally, you do not want a problem home that you then have to fix or on-sell when it becomes too expensive to repair.
Here are some of the pitfalls to avoid:
A property inspection report that is not provided by a builder friend, or mate of a mate, who is not a qualified property inspector.
Or worse, you didn’t even think to obtain a building inspection at all.
Relying on the seller’s or agent’s building report that is commissioned by somebody else. They might have not checked extremely relevant areas.
A valuation paid for by the seller and used by you as a buyer is never one to rely upon. You should get an independent valuation for your finance requirements as is necessary.
Paying too much for a property when you fear missing out. Remember “buy to sell”even if you don’t intend selling for many years. Nobody has a crystal ball that works!
Make sure that you read and understand all of the disclosures that are supplied during the sales and purchase process.
Things that could go wrong:
• If the seller did not disclose any building or structural issues to the agent and you land up buying a leaky home or similar.
• If the boundary lines are not quite visible and different to what you thought or what you had been advised were. If you are unsure, then get the property surveyed to establish the boundaries.
• If you didn’t check if you could get suitable insurance on the property or even transfer the existing insurance. With earthquakes and floods and other catastrophes, then knowing that you can get insurance is crucial.
• If conditions of the sales and purchase agreement have not been met by the agreed date as per the proposed settlement date and finance date, there will be penalties to pay, or the contract could be cancelled.
• If council consents for any renovation are not checked to verify information given by the sellers agent, you will be buying their problem.
• If the deposit you paid is not paid into the real estate company’s trust account as required, or any of the other terms and conditions of the contract are not met and honoured in a timely manner.
• You sign an unconditional sale and purchase agreement without including a property inspection report, so that you can beat competing purchasers. ( FOMO)
There are many other risks associated with buying a property, for example, a meth contaminated house is worth checking out, or a tenanted property needs to comply with the current legislation.
Make a list of the necessary steps that you need to take and buy with logic and not emotion.
©2021 e-propertymatters.com|women-in-realestate.com| Author| Kathryn