7 Things Property Buyer’s Must Know Before Searching for Property
Doing it Alone
Buying a property can be one of the most rewarding experiences. It can also become one’s biggest nightmare. Buying a property is a lifelong commitment you want to do it properly. One small mistake could cost you $10,000’s and in some cases $100’000’s. You must treat the process as one of the biggest projects you have ever taken on.
“One mistake could cost you $10,000 or $100,000’s”
The Enquiry
When making an enquiry on a property don’t give too much away. Be polite, friendly but cautious when speaking with the agent. They have a product that you potentially want. Being rude won’t put you at the front line. Don’t tell the agent your plan hold it close by and give the impression you are a serious buyer but don’t give away all your cards. Ask about the property, price and basic details. They also have a huge commission coming their way.
“Don’t be rude, be humble”
The Inspection
When inspecting the property walkthrough and take particular interest in the surroundings. Don’t let the emotions kick in and take control, it could be a costly mistake. Look for things that may have been covered up such as fresh paint and the smell for mould. The agent will probably probe you to ascertain how serious you are. Be polite but don’t give everything away it could cost you $$$$.
“Be aware of your surroundings, be present”
The Due Diligence
It is important that you do your own due diligence. Don’t rely on what the agent says to you. You have to do it independently. You will need to commission a pest and building report and if it’s a strata-titled property a Strata Inspection Report is mandatory. Look for any current applications before Council that could affect the future value of the property.
“Commission the necessary due diligence reports”
The Negotiations
If you are not a highly skilled negotiator you need to map out your strategy, so you don’t get don’t overpay. Start the process at a lower amount than what you are prepared to pay. Don’t give everything away you won’t have a buffer. Don’t be ridiculous and offer an unreasonable amount, you won’t be treated seriously, and you could lose the property. If there are issues that you can live within the building or strata report use them as a negotiation tool to try and renegotiate the price.
“The skill is knowing how to negotiate”
What if I Don’t Know How to Negotiate?
You can reach out to an experienced buyer’s agent. Make sure they have at least 10 years’ experience and ask where they studied negotiation. You may be a better negotiator if the agent is new or unskilled. You can check them out on Service NSW website to see how long they have been qualified for. An experienced negotiator will offer to manage the negotiations for a fee. You can reach out to MULLIGAN
“Engaging a highly skilled negotiator could save you $100,000’s”
Legal Advice
Ensure that you engage the services of a solicitor or licensed conveyancer to review the Contract of Sale, this process must be completed before you sign anything. This person will speak with the owner’s solicitors and negotiate any terms to be removed that may disadvantage you. The solicitor will look into many things that we couldn’t possibly provide in this information.
