Common Errors to Steer Clear of in Home Buying or Selling
Category Property News
In the current challenging economic landscape, both buyers and sellers aim to maximize their returns without falling prey to preventable blunders. Thorough research and guidance from a trustworthy real estate professional can significantly reduce the likelihood of encountering the usual pitfalls associated with property transactions.
Pitfall #1: Neglecting Additional Costs
A prevalent mistake made by both buyers and sellers is underestimating the array of associated expenses. Many costs must be settled before the transaction is finalized, emphasizing the need for readily available funds prior to signing an Offer to Purchase (OTP).
For sellers, upfront expenses involve the settlement amount for obtaining a rates clearance certificate and acquiring necessary compliance certificates (e.g., electric, plumbing, gas, beetle, electric fence). Buyers should be prepared for upfront costs such as bond initiation fees, transfer duty, and transfer expenses.
Pitfall #2: Emotional Decision-Making
While property transactions often carry personal significance, it is crucial to detach emotions during certain stages of the process. Sellers must avoid letting sentimental attachments interfere with the sales process. Buyers, on the other hand, should envision themselves in the property, necessitating updates and decluttering to enhance its appeal.
Buyers should also incorporate logical and financial considerations before committing. Assess whether the property has the potential to appreciate over time, and align long-term plans with the investment, moving beyond immediate lifestyle needs.
Pitfall #3: Overlooking the Fine Print
A common misstep on both sides of the transaction is a failure to thoroughly read and comprehend every clause in the legally binding Offer to Purchase (OTP). This document outlines the sale's terms and serves as the basis for dispute resolution.
For sellers, attention should be given to the suspensive conditions stipulated by the buyer, which must be met, sometimes at the seller's expense, before the sale proceeds. Buyers should focus on the property defects disclosure form, ensuring that issues requiring attention before transfer are clearly outlined in the OTP.
Relying on guidance from a reputable real estate professional is instrumental in avoiding these pitfalls and navigating the home buying or selling process with greater ease, leading to more favourable outcomes.
Author: Helen Melon Properties