- A sense of urgency could be leading to poor property buying decisions.
- Issues include overpaying or buying a problem-plagued home.
- Buyers are urged to complete adequate due diligence and other checks.
Australian home buyers looking to strike a deal before Christmas comes could be missing out on crucial factors that lead to overpaying or other poor property buying decisions.
President of the Real Estate Buyers Agents Association of Australia (REBAA), Melinda Jennison, said that a common conversation with buyers and investors, at present, is their desire to purchase and settle in time for Christmas, but that is not the best mindset for long-term property ownership or investment.
While it is understandable why buyers wish to be settled into a new home in time for Christmas, a looming holiday is no reason to expedite a purchase, said Jennison.
“Unfortunately, being too rushed with your asset selection can cause serious financial ramifications for many Christmases to come if you have unknowingly bought a dud or a property that is not fit for purpose.”
Melinda Jennison, REBAA
A sense of FOMO amidst a tough market appears to have resurfaced, with buyers letting emotions override due diligence and sensible decision making.
“Over-paying for a property can result in under-whelming capital growth that can have consequences for your future financial position as well as your ability to upgrade to a new home,” said Jennison.
“Likewise, buying an inferior dwelling because of a desperate desire for it be settled by Christmas makes little financial sense when you will likely own that property for years to come, and no doubt rue your hurried decision before long, too.”
Jennison emphasised the importance of completing the right checks on properties before diving into a purchase.
“Some are buying without performing adequate due diligence on a property, which may include not obtaining a building and pest report on a property or eliminating contract conditions to enable that to happen post-purchase for private treaty sales in some states.”
“Other risky decisions include buying sight unseen or relying on friends and family to help with property buying decisions, when their emotional connection and relationship with the buyer can influence their recommendations.”
Jennison advised homebuyers to take the time necessary to select the best property possible for their current and future needs as well as consider working with bona fide property buying experts, especially for investment properties.
“While it would be lovely to be settled in your new home for Christmas, what is ultimately more desirable and strategic is purchasing a property that suits your lifestyle now and well into the future,” she said.
Professional buyer’s agents are licensed real estate professionals who specialise in searching, negotiating, conducting due diligence, and purchasing property on behalf of buyers and hold professional indemnity insurance.
“By choosing a REBAA member, buyers can be confident they are dealing with an experienced and professional buyer’s agent,” said Jennison.
