Purchasing property in Sydney, particularly in the Inner West, Eastern Suburbs and Inner City can be a complex and daunting process. Over the years, we have heard many tales of buyers making cringe worthy mistakes that could have been avoided with the right preparation and guidance: For example, the Bondi Junction buyers who were kept awake at night by the revving of engines coming from the neighbouring Waverley Bus Depot which they had been unaware of; the downsizers who bought a split level penthouse apartment in Neutral Bay who realised within just one week that they could not cope with the stairs.
In this article, we will discuss the top three mistakes buyers make and provide insights on how to avoid them.
1. Relying on the Selling Agent
One of the most common mistakes buyers make is relying on the selling agent for advice including their price guides. It is crucial to remember that the selling agent acts for the vendor, not the purchaser. Their primary objective is to sell the property for the highest possible price for the vendor. This is clearly at odds with your ambitions to secure the property at the lowest possible price. With this in mind, be careful about how much information you share with the agent around your budget and your motivation to buy. If you reveal too much, this could work against your best interests.
Understanding Price Guides
Across Sydney, it is common for properties to be sold at auction. Auction price guides are often provided by selling agents, but these should be approached with caution. Price guides are typically an indication of where the bidding might start at an auction, not where it might finish. It is not uncommon for properties to sell well above the initial price guide, especially in a competitive market.
2. Relying on the Advice of Friends and Family
In Sydney, everyone seems to have an opinion on real estate. While friends and family may have good intentions, their advice can sometimes be misguided. It is important to be cautious of well-meaning advice from people who are not experienced property experts or negotiators. Don’t be pressured into making a purchase or walking away from a purchase just because of a loved one’s personal opinions.
The Importance of Professional Advice
Real estate is a specialised field that requires in-depth knowledge and experience. Buyers’ agents have extensive experience in sourcing properties, organising due diligence, negotiating, and bidding at auction. We keep ourselves abreast of property market trends, including up-and-coming locations, price surges, and off-market properties not publicly listed on the open market. By relying on professional advice, you can make well-informed decisions that align with your property ambitions.
3. Not Being Prepared
Preparation is key to a successful property purchase. This starts with determining your brief and budget. Before you begin your property search, ensure that you have sufficient finance in place and be clear on your search parameters.
Determining Your Brief and Budget
Your brief should include the type of property you are looking for, the location, and any specific features you require. Your budget should be realistic and take into account all associated costs, including stamp duty, legal fees, and any potential renovation costs.
Conducting Due Diligence
When you find a property you are interested in, it is essential to conduct thorough due diligence. This should include:
- Legal Review of the Contract: Have a legal professional review the contract to ensure there are no hidden clauses or conditions that could affect your purchase.
- Recent Comparable Sales: Research recent sales of similar properties in the area to understand how much the property is likely to be worth and how much it could sell for.
- Surrounding Area: Investigate the surrounding area including neighbouring properties to identify any negatives that might impact your enjoyment of the property, such as infrastructure works or planning or development changes.
- Building and Pest Inspection: Obtain a thorough building and pest inspection report to identify any potential issues with the property.
- Strata Report: For strata properties, obtain a strata report to understand the financial health and management of the strata scheme.
Preparing for Auction
If you are going to bid at auction, it is important to set your upper limit before the auction and not on the spot. Consider a suitable bidding strategy and be prepared to walk away if the bidding exceeds your limit. Buyers’ agents can provide valuable assistance in this process, helping you to develop a strategy and representing you at the auction.
Conclusion
Avoiding common mistakes can significantly improve your chances of securing the right property at the right price. At Buyer’s Domain, we are committed to helping our clients navigate the complexities of the Sydney property market with confidence. Our expert buyers’ agents provide personalised support and professional advice to ensure that you make informed decisions and achieve your property goals.
By avoiding common pitfalls and leveraging the expertise of professional buyers’ agents, you can make smart, informed decisions that will benefit you in the long term. Let us help you find your perfect property and make your property journey a successful one.
If you are thinking of buying property in Sydney, contact us today to discover how our buyers’ agent services can simplify your property journey and provide exceptional value.
