With the Sydney Market being incredibly popular at the moment, buyers are scrambling to get their hands on property.
Many buyers presumed the market would weaken and have now have a serious case of FOMO (Fear of missing out).
1. BUYING EMOTIONALLY
People looking to purchase a home to live in typically will pay more than investors for the same property, they are sometimes referred to as heart buyers.
Sometimes it is difficult or impossible to become emotionally detached to searching for a new home, but as a buyer you need to understand that your emotions will lead you to make decisions that a clear head wouldn’t.
Sometimes this can work in your favour, and if you end up purchasing a home you love for a little more, there is no great loss. But if the emotion leading you is FOMO, then you really need to take a pause and assess your search.
2. WAITING FOR THE MARKET TO ‘CORRECT’
Time and time again, we have come across buyers who have taken a break from finding a new home simply because “The prices will drop”. Some of these buyers sold their homes several years ago when they assumed the market had peaked, they have now cost themselves hundreds of thousands of dollars in waiting.
In Sydney, the best day to buy real estate for market price is today. Ultimately you should be selling and buying in the same market to avoid any risk of missing out.
3. EXPECTING A BARGAIN
This is simply irrational in the current Sutherland Shire market. It is not uncommon to have 3 or 4 buyers negotiating on the same property.
There is no harm in trying to get a bargain, but chances are there will be someone ready and willing to purchase to avoid FOMO and you will miss property after property.
Sometimes, buyers are necessarily looking for a ‘bargain’, rather they are simply looking out of their budget time and time again.
4. THE WRONG ADVICE
When it comes to buying, you need to take the advice of professionals like your conveyancer, solicitor and mortgage broker.
Take the advice of selling agents, friends and family on board, but do not treat it as gospel and more often than not these influences are based either on personal interest or personal preference.
This will be your home, you normally only buy a few in your lifetime and it is usually your biggest asset, don’t you want to be the one making the final decision?
5. BE QUICK, DON’T RUSH
Real estate transactions are moving incredibly fast. You need to ensure that all your finances and pre purchase checks are in place before you start shopping, or there is a good chance you will miss out.
But don’t confuse good preparation with rushing into a bad decision. Don’t buy for the sake of buying if the opportunity arises.
And always ensure you and your professional advisers are doing their due diligence to ensure the transaction is in your best interest.
