Buying property? Use a checklist!

The Average Buyer's Approach
The average buyer (particularly the first home owner) has an idea about what they want. Most searching starts on the internet or at the local shopping centres by looking in the windows of real estate agencies. The buyer hopes the right property will fall into their lap and the hunt will be over within the first weekend.

Often, the buyer walks into a real estate agency. The real estate agent has about 20 properties on offer, but immediately shortlists to 2-3 properties in the buyer's price range. The agent takes the buyer to look at the properties, stopping after the first two - the buyer declaring it to be ‘the one’ and a contract is drafted.

Is there anything wrong with this approach? I would suggest there are quite a few things wrong with this approach, but let's tackle the first step today - "Creating a Checklist"

Creating a Checklist
Before you start looking for property, write down what you are looking for. Start with the location, then the block of land, followed by the building itself. I've not given this sequence to you by accident. It’s purpose is to help you focus on what’s most important – location, location, location… then the rest!

Once you have completed writing a list as comprehensive as possible, start to prioritise each of them. A simple 1 - 5 works well. You'll find that you are more negotiable on some than others.

With a firm idea of what you want, you are now ready to start looking!!

While you are searching, write down how each property performs against your criteria. You'll quickly begin to notice that agents don't advertise information, which doesn't put the property in a good light. For exmple, they will only tell you the block size if it's a decent size, if it's not a good location, they withold the address, etc. Make sure you ask all the questions on your checklist and fill in all the gaps.

Once you have written down the information relating to each property, you can more easily compare different properties over time. The example below shows the requirements in the light blue area, such as a price less than $650,000, a block size greater than 600m², etc. The details below are actual properties and show how they compare.

Once you have this comparison, you can start to see what is more likely to meet your needs and give you more confidence when signing the contract.

Don't be afraid to add an item to your requirements, or modify them as you go. For example, you may find properties, which are too close to railway lines. If that's the case, you may add a requirement that the house not be closer than 200m to a railway line and assign a priority of 4.

As a Buyer's Agent, creating the checklist is a vital step when we first meet our clients. This approach helps to ensure we get the right property at the right price.

If you would like an unfair advantage when buying your next property, give your buyer's agent a call on 1300 727 586.

Yours in property!