When the time comes to purchase your next property its important that you follow a process to ensure you don’t over pay and ultimately protect yourself and your asset long term. As Buyers Advocates we are buying a large volume of properties and have seen all the different scenarios play out and have compiled three tips to ensure you protect yourself in the purchase process.
Set a budget
Speak to your mortgage broker and find out your lending limit and set out your maximum spending budget. This will not necessarily be your budget for every home you decide to put an offer forward for but help guide your search. Ensure before you put in an offer or bid at auction you know your walk away price and stick to it. This is your line in the sand which will be combined both by your actual spending ability and factors such as how long you plan to live in a home for and local comparable sales.
Do your due diligence
For most people their home will be their biggest asset and it is therefore important that full due diligence is undertaken to protect your asset. This includes assessing local surrounding developments or construction which might impact your property, ensure a legal representative does a full contract review and that there are no conditions which leave you vulnerable in the contract. You should be reviewing local comparable sales and suburb trends and contacting the body corporate if relevant to see if any upcoming works are planned to be undertaken.
Understand the vendors motive to sell
There are many factors which contribute to a vendors motivation in the selling process not just the sale price. Often settlement terms will hold influence over their choice between your offer or another offer. So if you can understand the vendors motivations for selling this can help you leverage your offer in the sale process.