Should I buy this house? Or If you were in our position what would you do?
These are the two questions my clients will always ask me when buying a house on the north shore. They are perfectly normal questions to ask and to be honest when I am confused or question myself I do the same.
To answer these questions, you as the buyer need to become decisive and confident with your decision making process.
So how do you get to be in this position of being decisive and confident?
Let’s start with looking back over the houses my clients have purchased. Most of the time the decision to buy was made from the outset. They were more or less confident and when I met them at the property, sure, they were a little nervous, but generally, they just wanted to make sure they hadn’t missed something that may change their mind. They were confident from the beginning that ‘this was the house’ for them.
My personal experiences support this. The properties I questioned or hesitated on, I didn’t buy. The ones I bought, it was almost like a switch was turned on.
Emotionally and financially we need to get it right.
Let’s face facts, the transaction costs on a purchase price of $1.5 million are around $75,000. If you have a house to sell, you may spend another $40,000 in selling costs, hence, $75,000+$40,000 = $115,000 or nearly 8% of the transaction. You want to get it right.
I will now tell you the 10 points that you need to consider to get you to the stage where you will be confident that it is the home for you.
- First of all you are reading this blog, so you have come to the right place. housePro, will help you by providing you with the knowledge you need to buy a house. Once you have your Property Analysis Report use it like a report card. The Report comments on all of the properties key features, these features are what property professionals look at to make their decisions and what we believe the market (in this case families) classify as priorities. The report lets you know if these property features are good or bad.
- Ask the question. Why am I buying or moving to another house? You must always go back to this question because this is the reason why you are here today. The house you buy must satisfy your requirements in response to this question. So write it down and answer it.
- What features do I want in a house and what can I do without? For most of us we have a budget so all houses are a compromise. No house is going to be perfect. So write down all the features you want in a house. Use the housePro Property Analysis Report as your guide as well as brochures the agent has provided and see if they tick the boxes.
- Time in the market. The more you look the more you will understand the available stock, what features are obtainable, the ones you like and dislike. This will eventually enable you to get a grip on the pricing structure of the market.
- I have to buy this house now or I will miss out! In this market, the pressure many of my clients feel that they have to buy a particular house and buy it quickly is enormous. So what, you might miss a house or two, but let me tell you about my personal experience. My good friend said to me at the very first property I ever bought “you will never find a block as good as this one”. Twenty-five years and many properties later he still says the same thing to me with each property I purchase. What I am trying to tell you is there will always be another property just as good around the corner. Prepare yourself to be flexible and patient.
- When you buy real-estate, think of the bad times, and let me tell you, they will come back. When real-estate is on the nose there is a limited amount of buyers. These buyers can afford to be really fussy when everything is for sale. The easiest way the buyers can reduce the stock they look at is to screen it by using my most important point, Location, Location, Location. So if you buy a great house in a bad location, there is a serious risk that if you have to sell when the market is down buyers won’t even look at it. Location should be at the top of your list.
- The land. At the end of the day if your house burnt down all you are left with is the land. Flat level land in a good location is hard to come by and is the intrinsic value of your property. Land is the basis of all valuations; it is the hard fact of real-estate.
- Floor plan. This is the most important feature about a house, it could be an ugly duckling, or be in dire need of upgrading or renovating. If the floor plan is bad then it can be very costly to rectify or will directly impact your quality of life. The floor plan is about living, it provides the path and flow of your life within a house. A good flow in a home provides harmony for all the family.
- How much will it cost to renovate or build a new house? So many people underestimate the cost of building, even someone who has built for 25 years still cannot believe how much it costs. So always try to do some rough numbers and estimate how much it will cost to finish the dream. housePro can always provide ball park figures for you.
- Final point. Can I live in the property for ten years? You need to say yes to this question because real-estate is a long term investment not a short term one. 10 years provides enough time so get a return on your investment, although nothing in real estate is ever gaurenteed. It also means you have thought about what you are doing and understand how the house will impact your life. At the end of this time, chances are you may be ready for the next chapter in your life.
For your Property Analysis Report and further information you may require, please visit, www.housepro.com.au today.