Don’t shop for a new home on price alone

With the constant headlines of recent times regarding topics such as increasing house prices and property undersupply, it isn’t surprising that some prospective buyers are a bit worried about their ability to afford real estate. 

As a result of such concerns, CENTURY 21 is starting to see some cases where people base their entire purchase decision on the price of the property alone.  In these instances, when a buyer finds a property that suits their budget, a decision is made to buy it with little or no consideration as to whether the property suits the needs for which it is required.    

Don’t get me wrong, in no way am I trying to say that price isn’t an important factor in the decision process – it most certainly is.  However, there are also other key factors that buyers need to consider when making up their minds.  Even if the price is right, buying a property that isn’t appropriate may end up being a decision you regret, potentially costing you more in the long run. 
A recommendation that CENTURY 21 agents regularly make to clients is to compile a list of absolutely everything wanted from the purchase.  Consider both what is required of the actual property itself as well its location.  For example, if you have a growing young family and are looking for a home, property size will need to be a consideration, as will a location that is close to public transport and schooling.    

My suggestion would be to start with absolutely everything you need and want and then prioritise the list.  Make note of the elements that are definite requirements, followed by the items you’d be willing to compromise on, or even go without. 

Making such a list may seem like a relatively obvious concept, but you will be amazed by how much it helps your search if you have a clear idea of what it is you’re actually looking for from the start.  I’m not saying that you shouldn’t purchase unless you get absolutely everything on your list, but having a comprehensive understanding of your needs/wants can certainly make the buying process a bit easier. 

In any case, the concept of price becomes a lot more rational to deal with when you know exactly what you require from your purchase.  You may find a property that fits your budget, however if it doesn’t cater for your needs, it could end up costing you more money in the end.

Posted by Charles Tarbey on 23/06/2010 at 9:57 AM | Categories:


Property Dude

Property Dude wrote on 28/06/2010 1:05 PM

As a property seller, I agree with the need for local area expertise. Also, I want my agent to be able to explain to whom and how the property will be marketed - most of the agents I have spoken with have very little understanding of the dynamics of property advertising.

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