The one thing you MUST do when buying a home
The biggest investment of your life could cost you way too much if you aren’t careful.
Investors know that to succeed they have to find value and add value. Learn from them.
When buying a home, take care not to let your heart rule your head. Salespeople want to arouse your emotions and cause you to become fearful of missing out. Don’t be hasty. Do not allow yourself to rush this important, and costly, decision.
Take the time and trouble to get professional building inspection reports, to check with local authorities on any future developments that may impact on the property, have legal aspects verified, and do all due diligence.
But, there is one thing that should be at the top of your checklist before agreeing to purchase:
You MUST establish the true worth of the home.
Get an appraisal in writing from a certified, independent valuer, and do not pay more than this for the property.
Valuers work on what are known as comparables. They calculate their valuation largely based on recent sales of comparable homes in the same area. They have access to this data from government authorities whose job it is to register titles and to record sales data.
Depending on where you may be choosing to live, it should be possible, with a little investigation, to purchase such data yourself. The time spent, with such information in hand, driving the neighbourhood and inspecting dwellings will be amply rewarded.
Do not go on agent or property developer valuations. Do not go by listed and advertised sale prices. Go by actual recent sales figures. Do your homework and get independent professional advice. It could save you tens of thousands.