Mercury (Hobart) - Property
ERRORS COST PLENTY
When buying or selling property, there are common mistakes that are easily avoided — if you know what to look for, writes Tom Panos.
In my 35 years of real estate, I see vendors and buyers make recurring mistakes when looking to buy or sell. In this current market, there is simply no room for error.
Let’s start off with the most common vendor mistakes.
1. Don’t confuse the cheapest agent with the best agent.
They generally are not the same agent. You want a house price maximiser not a commission minimiser.
2. Marketing – You can’t sell a secret Your home will be on the market in competition not in isolation. Now that many restrictions are ending, there will be so much stock on the market, you are going to need to stand out to win out.
3. Don’t let your house stay on the market for too long
It will move from the sweet zone to the stale zone. Just like milk and bread, it gets cheaper sitting on the shelf at the supermarket, not dearer.
4. First impressions count
Styling your home or getting it touched up, is an investment – not a cost.
People buy things emotionally, and then justify it logically.
5. Price it right
Overpricing a property scares buyers away. You want to create buyer competition. Some of the best results I’ve seen have been from a bidding frenzy. Be sure to discuss the pricing strategy with your agent to ensure it is not considered as underquoting and you are not breaking the law.
Now, let’s look at the common mistakes buyers make.
1. Buying in a suburb where you have not done the research.
One of the biggest mistakes I see, is a buyer who misses out on a few properties in one suburb and out of frustration, buys another property in an unfamiliar suburb thinking it’s a bargain. It’s not a bargain – it just seemed cheap compared to what they were looking at.
2. Paralysis by over-analysis
This will often stop you from paying that extra 5 per cent that will secure the home you want. Of course, it’s normal to be nervous about a big purchase, but real estate at worst has had a drop of 18 per cent in any correction and the market picks up this correction within 24 months.
3. Not getting a pest and building inspections
While it can be expensive getting these reports and then missing out at auctions, the most expensive thing you can do is to buy a ‘lemon’. These days, there are organisations such as Before You Bid that allows you to amortise the cost of pest and building inspection reports with other prospective buyers. This can greatly reduce your costs.
4. Timing the market
If you are trying to time the market, you’ll get it wrong. The only way to buy at the bottom of the market is when the market has gone up. Because you can only look back and realise when the bottom was, but by that stage, it will be too late. Do not buy a home based on the market. Buy a home based on your life.