Traps To Avoid When Buying Your First Home
First home buyers have a lot to think about when entering the property market and there are quite a few traps they can easily fall into. At Brisbane Buyers Agency we understand the stress, time and energy that can go into buying any home – let alone a first home. To help make the process easier for first home buyers here are some common mistakes we find first home buyers can make. Welcome to Part Two of our article on this topic.
First Home Buyers Trap #6 – Fear of Negotiation
So many first home buyers I help simply feel like they cannot negotiate. They say to me: “it feels like a confrontation” or “I can’t afford to negotiate ….I don’t want to lose this one”.
I understand doing things for the first time can be intimidating but buying a home is not a popularity contest. It is about your future. Many of us are conditioned to follow instructions, be polite, and not ask questions for fear of offending – but this situation is too important for you to hold back. I always coach my clients to ask for exactly what they want, and if they get knocked back, to ask again.
Negotiating can sometimes be about leverage and often you, as the first home buyer, don’t realise how much leverage you actually have. You simply don’t know how, and or what to, negotiate on.
Another tip for negotiation is to treat it like a game. I always feel the more cheeky you are as a child the better negotiator you can be. I am perfectly ok with it because I do it with a good heart from a conscious place. And I kind of find it fun. So if you can think of it as a game you’re more likely to take the pressure off and feel ok with asking for anything.
If you’d like to know even more about negotiation read my blog on the 11 golden rules of negotiation here.
First Home Buyers Trap #7 – Looking for Your “Forever Home”
I’m sorry to sound cynical but there is no such thing as a forever home. We buy and sell homes throughout our lives as our family and lifestyle needs change. Ideally, it’s smart to buy a home you can grow into if budget allows.
A good friend once told me “if you want to make God laugh tell him or her your plans” and I think it is so true. Life has a way of changing that you simply cannot plan for – despite your best efforts for control.
For your first home, it’s important to think about three things:
- Your personal and lifestyle needs in the next three to five years
- Potential capital gain.
- What type of buyer is going to buy your home when you are ready to sell it.
Your first home purchase is vitally important as it can set you up financially for the future. You don’t want to overspend on features you don’t need right now, renovate unnecessarily for little or no gain, and you want to make sure you can get the best capital gain possible, so you’ll be in the best financial position when you go to buy again.
First Home Buyers Trap #8 – Not Understanding Your Budget: Opportunity Ratio
Something really important to understand is just how many homes in your preferred area are likely to come up for sale in any 12-month period. This is what I call your “budget: opportunity ratio”.
This exercise alone will save you months in time, which in turn will save you energy and your sanity. You’ll feel more positive, less exhausted by your search, and get to your new home much more quickly.
When I work with first home buyer clients I take them through a process to understand this ratio.
If you are looking in a location where there are few options then you’ll be less likely to find something you can afford that fits your brief, or you will settle for much less than you need to.
When you are doing this it is important to look closely though as there are a lot of homes on the market that I wouldn’t buy for one reason or another e.g. busy road, flooding, needs too much work etc. So you need to look at the quality of homes and the number of homes truly assess your real budget: opportunity ratio.
First Home Buyers Trap #9 – Not Asking for Help
First home buyers can also fall into the trap of not asking for help – which is a shame when there is so much help out there. When I started to look for property my father, an Italian immigrant who was extremely experienced in property, gave me a lot of advice and coaching that made all the difference. I was so grateful to have his support.
I do realise that not everyone is lucky to have a parent like mine who truly understood the market and what to look out for. I also understand it can be hard to know where to start or who to ask – it can be quite a confusing thing to do. It is one of the reasons why I became a buyers agent – because I inherited my father’s passion for property and I’m passionate about helping people make smart property decisions that work for them and their family into the future.
Want to Avoid the Traps? Join Our Smart Home Buyers Kickstart Program
As a buyers agent, I’m proud to bring all of the experience I’ve gained from a long career in the property industry with qualifications and roles in property valuation, quantity surveying, and real estate sales.
I also realise that not everyone can afford the full service of a buyer’s agent which is why I’m now proud to offer my Smart Home Buyers Kick Start coaching program which gives first home buyers access to my expertise through a lower cost and easy to use online coaching program. In the program, you get access to face-to-face time with me as well as videos that take you step-by-step through the process. To find out more about it click here.
FREE session: “Brisbane Property Buyers Strategy Session”
Imagine being crystal clear on what’s most important to you, so you buy the property that sets you up best financially and lifestyle-wise. Book a free strategy session with us where you will clarify your Buying Brief and get some insight into property opportunities available in Brisbane right now.
This session is valuable to first home buyers, investors and home owners wanting to upgrade.
You will leave this session knowing exactly the type of property you need to help you grow a strong financial future and property portfolio.
To book your “Brisbane Property Buyers Strategy Session” register at the form to the right of this blog, call 0409 499 034 or email firstname.lastname@example.org