A house is usually the biggest purchase that most people will make, but there are some common mistakes that we see in the Port Douglas real estate industry, especially from first homebuyers.
We’ve seen many homebuyers underprepared or overwhelmed with everything involved in finding their new home, so we’ve curated a list of common homebuyer mistakes. The more prepared you are, the better the chance of finding your new Port Douglas home.
The following tips will help you be prepared and head out into the Port Douglas real estate market with confidence and ease.
1. Not Doing Enough Research and Preparation
There is so much that goes into researching and preparing to buy a new home, especially if it’s your first home. A few things you will want to research before heading out into the market include:
- Understanding your financial situation
- Analysing your assets
- Getting pre-approved for a loan
- Looking into the neighbourhood
There can be a lot to do before you start house hunting, but the research and preparation stage is critical for a smooth transition into your new home.
By doing your research, you will be as prepared as possible and able stand your ground when it comes to dealing with selling agents, auctions, and negotiations.
2. Underestimating All the Costs Involved in Real Estate
When budgeting for your new home, especially if it’s your first home, you might not realise how many costs are associated with buying a home. There are several often overlooked or forgotten costs such as:
- Home loan application fees
- Valuation fees
- Mortgage insurance
- Conveyancing
- Stamp duty
- Inspection fees
- Rates
- Maintenance costs
These are just a handful of the costs that can be involved with buying a house, on top of the moving fees and the actual cost of the house itself.
While we don’t mean to overwhelm you, we want to make sure you understand all the costs involved and are fully prepared for your future in your new home.
3. Going Over Your Budget
It’s human nature for us to want more than we can afford, but buying a home is not the place to give into temptations or make impulse purchases. We know there are lots of Port Douglas holiday homes in this beautiful beachside area, but buying a home that’s too far outside of your price range could cause serious financial problems in the future.
When looking for a home, there will always be a real estate agent that will try and talk you into buying outside of your means, or an auction that gets really competitive. But don’t be tempted, the bank has usually offered you a borrowing limit for a reason. Make sure to stick to your budget, and you will find the right home for you in no time.
4. Being Too Influenced by “The Market” in Port Douglas
We hear about the property market all the time in news media, and it can sometimes be off putting for potential homebuyers. These constant messages may confuse you and might put you off the decision to buy a home. Like many things, the Port Douglas property market naturally cycles, and you should look for a home when it’s right for you.
There are times in the property market cycles where it suits the seller, and times where it suits the buyer. However, waiting for the right time doesn’t always go to plan. If you know your budget and know your specific needs, then you should try not to be too influenced by short term market conditions for a long-term decision.
5. Only Thinking About Price and Not Value
Price is obviously going to be one of the biggest factors involved with buying a house, but it can’t be the only factor you keep in mind. When looking at Port Douglas real estate for sale, it’s important to buy the right property rather than just the cheapest property to benefit you financially in the long run.
This just means you shouldn’t make your buying decision purely based on price, and you need to consider the value of this property. There are so many things that go into value, and a buyer’s agent or another professional can help you discover the true value of your potential home. Make sure to think about the bigger and long-term, picture.
6. Not Having a List of Non-Negotiables
A list of non-negotiables is, well, non-negotiable when it comes to looking for your new home. You might be on the hunt for a perfect home that ticks all the boxes, but usually this isn’t how it works. No matter the budget, each home is different, and you will need to focus on the things that matter to you most.
This is why you must have a list of non-negotiables. Your non-negotiables are unique to you and your family. They are the key things that you can’t live without or don’t want to compromise on in your new home. It’s crucial to know what your deal breakers are, so that you don’t get caught up and miss the things that are important for your happiness.
7. Not Organising a Professional Building Inspection
A pre-purchase building inspection is really important when purchasing a house in Port Douglas real estate. There are additional issues associated with owning a home in a coastal area, such as the effects of coastal air, sand, salty water, and erosion. Often you won’t be able to see these issues upon first or second glance in inspections.
It’s important to bring in a professional, and to find one independently rather than one suggested by the selling agent. Inspectors will find faults, no matter how minor, so make sure to look through their list and decide what you are okay with fixing or leaving as is, and what are the deal breakers.
8. Buying Without a Port Douglas Real Estate Agent
A seller probably wouldn’t want to sell without a selling agent, so why would you want to buy without a buyer’s agent? It’s important to remember that the selling agent will always be working for the seller, and only looking out for their interests. This is just their job, like a lawyer in a court case.
Therefore it’s a good idea to bring in a Port Douglas real estate agent to represent your best interests and keep an outside perspective on things. Even if you have good knowledge on the buying process, it’s hard to not have an emotional attachment. There are plenty of excellent buyer’s agents, such as the team at Property Shop Port Douglas.
Ready to Make Port Douglas Your Home?
These common homebuyer mistakes are not an exhaustive list, but they can certainly help make buying your new home easier. If you are ready to make Port Douglas your home, you can get in touch with the Property Shop Port Douglas team on (07) 4099 5355 or head to our website.