You have spent countless hours searching, inspecting properties and screening calls from sales agents, but have been outbid at every auction. Panic bubbles in your chest as you await a call from the sales agent. You check your phone. It hasn’t rung since the last time you checked three seconds ago. Why won’t it ring? Prices are increasing and it has been months since you began searching. You feel… desperate.
The scenario pictured above is an example of an insidious psychological state, called fear of missing out, or FOMO, 1 of 10 mistakes buyers make when buying a home. This state originates in the amygdala and causes social angst. It leads to reckless decisions because of an intense fear that everyone is getting what they want, or becoming part of a desired group, and you aren’t. This fear of losing something if you don’t act now can take over your life.
But, it doesn’t have to. You can take the following steps to keep a clear head as you search for the property that’s just right for you and not paying over the odds to secure it.
Prepare yourself through research
Research is paramount in any property search. Make sure that you have a good understanding of what properties are actually selling for in your desired suburb and take less notice of the price being advertised (often there is a 5-10 % difference in advertised vs selling price) Ask yourself what is more important, the location or the house itself? If the house is more important and the suburb you are looking in is becoming too expensive you may need to look at another suburb. If the location is important and a three-bed apartment is too expensive you may need to consider a two-bed apartment instead.
This may all seem obvious, however, we see buyers every week wasting their time in suburbs which are out of their budget and miss out on yet another opportunity. Make sure you do your due diligence.
Understand the buying process
The average person only buys 1-3 properties in their lifetime so it is easy to get caught up in your emotions in a property negotiation or auction and make irrational decisions. Try to remain calm and make sure you ask a lot of questions to fully understand the buying process and your options when searching, negotiating and buying a property.
Unfortunately, there is no universal standard to how selling agents manage multiple offers or negotiate on a property so it is important to familiarize yourself with the process and ask the selling agent questions such as, “What is the process of submitting an offer on a property?”, and “what is the process if there are multiple offers on the property?”. This will provide you with more clarity on the situation and hints on how you can best present your offer. If this all seems too hard or you think your emotions may cloud your judgement, seek counsel from an experienced Buyers Agent who can guide you through the process.
Sealing the deal of your sought-after property can be a long process, but by getting organised, planning ahead, and researching thoroughly, you can make sound decisions that will positively affect your financial and emotional well-being.
To learn more about 10 mistakes to avoid when buying a home click on the link to download our free e-book.
Luke Assigal, Managing Director
Parley Property Advisory