How NOT to buy a $450,000 house for $750,000 (FOMO at play)
My top 3 tips on how to be better prepared when shopping for a home in today’s market and to manage the common FOMO (Fear Of Missing Out) which is rampant in the Melbourne market presently.
1) Look at what they are selling for, not just what they are listed for.
Too often we hear stories (and see it unfold) whereby a property is advertised for $480,000 - $520,000 and then goes for $700,000 at auction. This either means the agent is
a) completely out of touch with their market
b) they are underquoting, or;
c) someone paid way too much (emotional and/or uninformed).
So you are better prepared you need to do proper research on SALES, not ADS.
We can run a free report for you, quite easily, on your area if you get in touch. Or go to the RP Data website.
2) Get a pre-approval for the maximum amount you are comfortable in borrowing, before you go to auction!
Factor in interest rate rises and be sure to be realistic on your affordability.
Just because a bank will lend you the money it doesn’t mean they will be there to help you sleep at night.
So be realistic on your payments you can afford and not just how much you can lend.
If it seems too much of a stretch at today’s rates then maybe renting for the short term and saving some extra cash wouldn’t be such a bad idea...
3) Engage a professional buyers agent to look (and bid) for you.
Quite often I hear of people wanting to do it all themselves to save $10k or so in buyers agents fees and then watching as their property trickles along at below average growth.
I caught up with a buyers agent friend of mine yesterday who told me a recent story about how she managed to save $70,000 for a client of hers last
weekend, by knowing what to offer and not getting emotional about it. The funny thing is that I am sure we would all be guilt of being emotional when it comes to the place we want to live. A buyers agent is one way to remove that from the equation.
So there you have it. 3 tips you can use to keep a level head in the Melbourne property market.
You can thank me with an invite to the housewarming 😊