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HELP FOR HOME BUYERS

HELP FOR HOME BUYERS
Six hints to make it easier.

by Neil Jenman

Does any industry treat consumers as badly as the real estate industry? Unlikely.

It's astonishing. You're about to spend several hundred thousand dollars, it's the biggest financial purchase of your life - and, yet, from most agents, you get the lowest level of treatment you've ever had in your life.

Most agents are hard to contact, they rarely return calls (or emails), you have to meet them where and when it suits them; and then, when you do talk to them, they lie about the likely selling price of properties.

Week after week, you race around, wasting time and money. Trying to buy a home these days is frustrating in the extreme. Finally, when it comes time to pay, you are likely to be pushed and bullied.

Thank goodness you only have to do it once every few years.

And therein lies the cause of the problem. You've got no experience with agents. By the time you get the experience, you're so battered you never want to hear about real estate again.

So, to spare impending homebuyers some pain, here are six helpful hints.

1. A FRIENDLY GUIDE

Most buyers venture into the property jungle with no protection and no guide. This is why they get eaten alive.

You'd never venture into a real jungle without a guide - or without taking advice from someone who knows the way - so don't do it in the property jungle.

I am a big believer in Buyers' Agents. In the future, I predict that more and more buyers will use Buyers' Agents.

At the very least, you should take along an experienced friend to help. Or, take some time to read a good guide book. Let the author be your experienced helper.

In the book, 'Real Estate Mistakes', there are some great questions you can ask an agent.

Thousands of buyers have used this book to guide them safely through the jungle. Not only will it save you money, it also gives you confidence and, as many buyers say, it turns home buying from fear to fun.

It took two years to write the book, it'll take two hours (at most) to read the section on buying a home. So spend around twenty dollars and read a guide. Or, as I said, hire a good Buyers' Agent.

Whatever you do, make sure you've got someone on your side. It's lonely in the jungle on your own.

2. CHECK THE PRICES

Most agents lie about prices. It's part of the suck-you-in process. Just another law of the jungle.

The agent may tell you that a property will sell for "around $500,000" and then, later (after you've spent time and money), you'll discover the real price is $800,000.

So, please, NEVER rely on the agent for the truth about prices.

For a hundred dollars you can get a three-month subscription to Home Price Guide http://www.homepriceguide.com.au/index.cfm. This will give you honest information on the prices in your chosen area. It's great value.

Now, before you buy, if you are still unsure, spend a few hundred dollars and hire a valuer.

I believe that many valuers are the "hidden heroes of real estate". Sadly, they are dreadful at selling themselves as the good friends they can be to buyers.

For an example of the benefits of hiring a valuer, visit the Herron Todd White site http://www.htw.com.au/. Read their monthly reports and you'll see what I mean.


3. MONITOR THE AGENTS

Before you deal with agents, check them out. You don't buy a car without doing some basic research, so do the same with agents.

Find the duds before you're forced to deal with them.

Okay, maybe they are all duds in your area; but, at least you'll be forearmed.

With an advance reconnoitre you'll know which agents are the worst dudders.

Just watch them for a few weeks (before you start looking to buy). Check their ads, go to their open-houses, call their offices, visit their auctions, compare their quoted prices with the selling prices.

You'll soon spot the most incompetent or the worst liars or the biggest bullies. And then you'll be prepared for the day when you have to meet them.

Maybe, if you're lucky, you'll meet some good agents. Although rare, they do exist.

4. MEET THE OWNERS

If agents are treating you badly, just go straight to the owners. Don't be bluffed. It's not illegal to approach the owners of a home and ask questions or make comments.

For example, [if it's true] you might say to the owners, "I have left several messages for your agent and I can't get a return call, can you help me?"

Or you may say: "The agent told me I can buy your property for around X dollars. Before I spend several hundred dollars on inspections and legal fees, I wanted to check with you that the agent is giving me an honest quote. I don't want to lose my money, that's all."

How do you find the owners? Knock on the door.

Now, remember, at no stage must you try and cut out the agent. That's the equivalent of real estate shoplifting. It can lead to big legal trouble.

If the agent gets cross with you for approaching the owner, tell them Neil Jenman suggested it. Show them this article. Seriously.

5. SET YOUR OWN CONDITIONS

Most buyers don't realise it, but you don't have to buy under the terms set by the sellers. You can set your own terms and ask for anything you want.

Whether it's accepted or not is another story; but as the old cliché goes: "If you don't ask, the answer is always no."

So, as well as bargaining on the price, bargain on the conditions.

Indeed, many times, the sellers will welcome your conditions. For example, you may say, "I will agree to pay the asking price if you will agree to [insert your conditions]".

6. MIND YOUR MIND

I believe the most important point in buying a property is your emotional well-being. Thousands of buyers get stressed and upset.

Please, don't let horrible people make you feel horrible.

And never make the mistake of getting so fed up that you buy the wrong property. If you're stressed or upset, take a break. Stop looking for a few weeks. The real estate market will still be there when you return.

And, finally, remember this: The purpose of a home is to make you feel good. Warmth, comfort, security, love - whatever is best in your mind - is what you should place first.

Unless you are totally happy with the feel of the home (and, of course, what it is going to cost you in price and repayments), don't buy it. Those who hesitate rarely lose in real estate.

If you don't feel good before you buy, you'll feel worse once you sign.

Yes, I'll be criticised for saying this, but I deeply believe it: Only buy a home if it feels right.

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This article was taken from the Articles page of the Jenman website.

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