Thursday, April 15, 2010

Common mistakes by real estate buyers.


Many of our clients come to us after a string of disastrous attempts to navigate the property market themselves. Here are some examples of common mistakes that we come across.

Giving the selling agent too much information. Putting you at a disadvantage when negotiating.
Not giving the selling agent enough information. How many people have missed out on a property because the agent did not know they were interested? The art is in knowing what to say and when.
Panic in a rising market and buy foolishly. As Louis Christopher said last week, “Remember lemons are very hard to sell in bad markets." But we see plenty of them selling at the moment.
Panic in a rising market and don’t buy at all. Of course the market will level off at some stage, but how much will prices rise before that happens?
Keep increasing their offer without a counter-offer from the vendor. This is not the way to negotiate with an unrealistic vendor.
Leave too much time between getting an offer accepted and being ready to exchange contracts. And leaving the door open for another buyer to snap it up.
Allow the auctioneer to create a rhythm. Before you know it you have bid over your limit.
Let the fact that other people are bidding confirm what the property is “worth”. Instead of doing your own research.
Believe what the agent is quoting for a property. Buyers largely determine what property sells for in this market and there aren’t many that tell the agent what they are prepared to spend.

There are many pitfalls for the unwary and the weary. And it is so easy to get caught up in the general frenzy and lose sight of what represents value for you.

For more information on buying property in Sydney go to www.gooddeeds.com.au.

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