- Hello Haus chief negotiator Scott Aggett shares his top five reasons why pre-approved buyers hold back from buying
- Difficulty finding a home, missing out on offers, and stress among top five factors
- Buyers encouraged to stay true to their criteria list and call in the experts for an unemotional opinion
Australian property analytics and negotiations company Hello Haus has revealed the top five reasons that finance-approved buyers are delaying their purchase.
Scott Aggett, chief negotiator at Hello Haus, said the company’s analysis indicated pre-approved buyers are paralysed by purchase jitters.
Mr Aggett said difficulties locating and negotiating on a property are driving the delay, and most find themselves compromising significantly when they do finally purchase.
“We’ve also found that 45% of buyers who do purchase express buyer’s remorse over their acquisition, while most on average take around seven months to purchase after gaining approval.”
According to Mr Aggett, most buyers are simply underprepared and make reactive decisions under stress.
“Most buyers put a focus on getting finance ready and what the statistics suggest is there is no emphasis on getting themselves what we call, ‘buyer ready’.”
Scott Aggett, Hello Haus chief negotiator
Mr Aggett shares his top five reasons why pre-approved buyers are holding back, and strategies to overcome the pre-purchase jitters.
1. Can’t find the ideal home
Research conducted by Hello Haus indicates the average buyer views over 300 properties both online and in person before acting, a figure that Mr Aggett said indicates buyers are not filtering their search adequately.
He advised buyers to build an honest ‘must haves’ and ‘nice to haves’ list of criteria to help confidently rule out unsuitable listings.
“Also, it’s crucial to make sure the home you want exists. That is, it’s in the right location
and within your available budget. If not, then something must change, but make that
change early in the process,” said Mr Aggett.
2. Constantly missing out
On average, buyers miss out on the first five properties they put an offer on. This can lead to buyer exhaustion and many will be prompted to overpay or compromise to secure a property.
Mr Aggett urges buyers to remember the value of a speedy decision, and ensure that they ask enough of the right questions.
He also believes a lack of understanding of the buying process and market dynamics can force inexperienced buyers to miss out, and encourages buyers to monitor real-time market values.
3. Feeling stressed and overwhelmed
Mr Aggett said while property buying can be exciting, buyers can be worn down quickly by the pressures of the process.
“Stress often comes from agents underquoting or game-playing during the marketing campaign.”
Scott Aggett, Hello Haus chief negotiator
“This is amplified when buyers don’t have rapport with a local agent network,” he said.
According to Mr Aggett, the best cure is to seek assistance from experts who can provide an unemotional and informed opinion.
4. Out negotiated by agents
Mr Aggett said buyers are already at a disadvantage by being up against selling agents with negotiation experience, and encourages buyers to call in their own professionals.
“Most buyers will only purchase three or four times in their lives, so they just don’t gain the experience necessary to excel at negotiation.
“In the end, many even overpay for their purchase. Our research showed around 45% of purchasers have buyer’s remorse,” he said.
5. Too much compromise
Finally, buyers have a tendency to panic when they can’t find the perfect property which leads to over-compromising.
“But then those compromises go too far and burn out prospective purchasers who feel they are simply giving up too much of what they want to try and secure a home. Worse still are those who spend more than they intended on a home that’s less than ideal.
“Again, having that detailed check-list from the very beginning is essential. Be prepared
before you start so you’re not caught out during the buying process,” Mr Aggett concluded.
