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Purchasing property is about more than attending auctions and open houses. It involves obtaining important information to give you a competitive edge.

Purchasing property is about more than attending auctions and open houses. It involves obtaining important information to give you a competitive edge. 

Many buyers lose their competitive edge by giving up too much information and it can hurt them during the negotiations. Many buyers don’t have the skills to compete against experienced sales agents. This is often because they let their emotions get in the way and they forget to ask important questions in order to get all the information they need to make an informed decision and develop a strategy.

So what should buyers never do when buying a property?

Never mention your budget

Even though you may need to give a rough estimate to the real estate agent in order to find the right type of property, it is important not to give an exact number. Once the agent knows your budget, they will do everything they can to ensure you pay this amount regardless. 

This also applies at auctions. Be wary about discussing your budget limits at the auction as other buyers may overhear you and could strategise around what they hear or see.

Never show that you are in love with a property

If an agent can see that you are falling in love with a property, they will use this to their advantage. Many buyers let too much out of the bag early on and agents can use your emotions as a bargaining chip. For example, if on your first inspection you discuss how much you love the propertymorethan any other house you’ve seen etc, agents may encourage you to make an offer straightaway or apply the ‘fear of missing out’ strategy. 

Never make an unrealistically low offer

Although there is nothing wrong with making an offer lower than the asking price, it is important not to be unrealistic.  If your offer is too low and you have numerous conditions, you may risk turning the vendor off as they may consider you a time waster. 

It is best to do your research beforehand to ensure your offer is justifiable. For example, research recent sales data for similar properties around the same area and include this information to help justify your offer. Our free Property Report can give you this sales data in just a few minutes. 

Never make a desperate buy

It can be very frustrating trying to stay motivated when you have missed out on several properties. But the worst thing you can do is just give up and buy any old property. If you are planning to live in this property, you may initially be relieved that you have finally bought something, but it might not be long until you start to regret the decision and will either go on living unhappily in your new home or start the process all over again of buying and selling. 

If you are keen to get into the property market sooner rather than later, but haven’t found the right property to live in, consider buying an investment property first. This way, you can still get your foot in the door and start earning rental income and building equity, but you don’t have to compromise on your dream home. You could even live in the investment property until you are ready to purchase your own home. 

Our lending specialists can help you crunch the numbers on property purchases. You can phone them on 13 72 62 or email ask@statecustodians.com.au to get them to do the hard work for you. If you are just wanting rough estimates on what you can afford, why not try our Quick Quote. It takes less than 2 minutes and will give you valuable information on interest rate, repayments and the maximum loan amount you are eligible for.