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.

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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.

 ?? ?? Tom Panos presides over an auction. Left, bidders in action at Blackmans Bay.
Pictures: Chris Kidd and John Appleyard
Tom Panos presides over an auction. Left, bidders in action at Blackmans Bay. Pictures: Chris Kidd and John Appleyard
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