When you’re house shopping and find a property that ticks a lot of your boxes, it can be difficult to contain your excitement. Whilst this can be great because your hunt for the perfect home might be over, it can also be problematic if it blinds you from reality.
The first thing we always recommend is to arrange an independent building & pest inspection by a qualified builder (as opposed to the report offered by the agent), and a strata inspection if you’re buying into a complex.
The qualified building inspector will look past the cosmetic patches and the quick fixes to see what’s really underneath. They usually know the local building codes so should be able to report on anything that isn’t up to code.
The value in these reports is unquestionable. They can either give you the reassurance you need to make an offer or to turn around and run in the other direction.
Some builders will also offer to include quotes for repairs into their report, which will give you an indication if it’s a big problem or a relatively small issue. This can also give you bargaining power when you make an offer as you are armed with good information to start your negotiations.
The second thing is price. If you’re totally in love with the house you may be willing to offer more than it’s worth. If there’s a lot of competition, you may be tempted to make a high ball offer to secure it. You may get caught up in the excitement of auction and get carried away with your bidding.
But you need to keep one foot firmly grounded in reality for a couple of reasons:
1. If you’re financing the purchase, the lender’s valuation will affect your loan potential. If you overpay, your finance may fall short.
2. You don’t want to resent your purchase if it puts financial pressure on you from paying over market value.
This is one of the most expensive purchases you will ever make. Take your time, ask questions, engage professionals and do your due diligence.
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