Real estate tips for buyers

Written by Paul Kounnas | Monday, 26 February 2007

Buying or selling a home can be a complex and time consuming experience. There are many important decisions to make. Below are a few tips that will help you:

1. You are more likely to make the right decision if you know what you want. Make a list of what you must have in a property and another list of desired, but non essential, items.
2. Before you start looking establish how much you can afford to spend. Pre-approval from your bank or finance broker is always helpful.
3. Do your research. Find out as much as you can about the market values of properties in your preferred area. The internet can ...

   ---

   be a great tool for this. Check out recent sales. Know what your ‘desired’ property is worth in today’s market.

4. Find an agent you can trust and work with them. Loyalty often leads to you buying the right property for the right price.
5. Don’t be too fussy and reject a good home hoping you’ll find the perfect home. You may miss a good opportunity to buy a nice home. Be prepared to compromise.
6. If you take your time and do your research you will be more confident and you’ll know when you see the right home at the right price.
7. To show that you are serious, always put your offer in writing with your terms and conditions. It is advisable that you include a building and pest inspection clause in your contract to purchase.
8. Don’t forget to factor in buying expenses such as stamp duty, legal fees and removalists costs. It is also wise to allow a few extra dollars for maintenance or small unexpected repairs when you first move in. 

Finally, make sure that anything which may be agreed to verbally is put in writing. If something is unclear ask for an explanation and if you’re still uncertain get professional advice before you sign.

How do you know if you found the right home?

Written by Paul Kounnas | Monday, 20 November 2006

Most people only spend a few minutes in a home before they decide they want to buy it. More often than not, the decision to buy is based purely on emotion, a feeling they get when they first walk through the home.

The old saying that first impressions are lasting impressions is true. The home you buy will be the one that makes you go “wow” the moment you walk through the door, you will feel an immediate attraction to it. It is a feeling you get that tells you that this is the one. People really do buy with their hearts.

The first thoughts you have when you first enter the home are often the ...

right ones.

It is important however, not to lose sight of the fact that buying a home is a huge financial commitment. You will be paying hundreds of thousands of dollars for an asset and locked into a loan for many years. Reasoning and logic needs to come into the buying process after the heartstrings have been touched.

Before you make that commitment, you should arrange to have another inspection of the property. This time walk through the home with a more practical perspective and make sure that it really does meet your needs. If it does, and it still has the right feel about it, then you have found the right home.

One final thing to always keep in mind is to not over extend yourself financially. Buy within your means and allow yourself a buffer, to ensure your family home is secure in the event of your personal circumstances changing or outside factors, such as further interest rate increases.

Timing your buying and selling decision

Written by Paul Kounnas | Monday, 13 November 2006

Market conditions such as; supply and demand, interest rates, market confidence and the general economic outlook have an impact on the price and the time it takes to sell.

Historically, property values in australia have increased by about 10% per year. Therefore holding property over a long term will inevitably protect you against any highs or lows in the market. With time you would have built some equity in your property and should enjoy the rewards of long term capital growth when you sell.

If you are selling to buy another property it is of little significance what stage of the property cycle we are ...

at. If the market is at its peak you may be able to get a higher price for your home, but you will also be paying a higher price when you buy. Similarly if you are selling at the bottom of the market you may not get as much for your home, but you also don’t have to pay as much when you buy.

The most important factor when selling and buying is to sell and buy when you are ready to do so because of your own family and personal circumstances and needs.

When selling and buying your family home it is the changeover price you should be looking at. this is the difference between your selling price and buying price. It is the amount you need to either come up with if you’re upsizing or if downsizing this will be the amount you want to be left over with.

The stage of the property cycle will not have much impact on the changeover price. Therefore, when buying a family home which you intend to live in for many years, don’t overly concern yourself with the state of the market. As long as you remember not to financially over extend yourself.