Your home is probably the biggest purchase of your life. It makes sense that you should give this decision the attention it deserves, and do your homework. Why then, do so many people get it wrong?

Searching without getting finance approval

There’s nothing worse than finding your ideal home, only to miss out because you’re still trying to get your finance approved. To avoid disappointment, don’t even glance at the property listings until you sit down with a mortgage broker. It can take a few weeks to get your ducks in a row, so there’s no point getting excited until you know what you can spend.

Lack of research

Many purchasers get swept up in the moment and don’t take the time to do the necessary research when buying a property. How do you know you’re getting a good deal if you don’t know what other houses in the same area have sold for? It’s important to keep a close eye on sold results in your area before you make a move. That way you will be better placed to negotiate with the selling agent.

Putting your trust in selling agents

When meeting the agent who is selling your dream home, you might be pleasantly surprised at how helpful and genuine he seems. He might ask you plenty of questions about your budget, and what sort of home you’re looking for. He will probably offer to put you on his mailing list so that you’re the first to know about new properties for sale.

Don’t be fooled – this guy is working for the vendor, and it’s his job to get the best possible price for his client. He probably is a nice guy to his family and friends, but to you – he’s on a need-to-know basis. Watch what you say, and don’t get your hopes up if he offers to ‘help you get a good deal’.

Stretching your budget

Many homebuyers fall into the trap of spending more than they can afford to repay. You might be pleased when a lender offers you more than what you originally planned to borrow. But without knowing everything about you and your lifestyle it’s really just the computer throwing out a number. You are the expert when it comes to your own habits, and it’s important to allow for unexpected costs, and some interest rate rises when deciding how much to borrow.

Purchasing without an inspection report

It might seem obvious if you’re a details person, but obtaining a ‘building and pest inspection report’ is something that often gets overlooked. Many buyers think that the vendor will reject their offer if it has too many conditions, and decide that they will forgo their right to have the property inspected by an expert. The reality is – if the vendor isn’t willing to allow this inspection, they either know about a problem with the property, or they haven’t paid enough attention to be sure that there’s nothing wrong. Either way, this might not be your ideal purchase. Just think – how would you afford to pay for the house to be re-stumped if you discover a problem down the track?

Failing to account for additional costs associated with owning a home

It’s expensive to own a home. That’s just the way it is. You will now be responsible for lots of costs that previously belonged to your landlord, such as council rates, water rates, home building insurance, maintaining fences, replacing broken hot water systems – and the list goes on. Make sure you have enough in savings so that you can still sleep at night.

Buying a property sight unseen

It seems insane but there are people out there who will purchase a property without actually going to see it. Maybe they are looking to move interstate, or cannot attend due to an overseas trip. Whatever the reason, this is obviously a huge risk, and it often ends in a world of pain. Don’t put yourself in this vulnerable position, unless you have a buyer’s agent working on your behalf, and you have a rigorous inspection report done by a qualified professional.