FOMO and the housing market
It seems that “Fear of missing out” ( FOMO) is really playing out in many markets at the moment.
It is not something that any buyer wants as it creates an under supply of houses which pushes prices up!
First home buyers are really finding it difficult in today’s market, with the extra forces at play.
The seasoned buyer versus the first home buyer
Seasoned buyers and investors know what to expect so will have it all sorted.
They know that there will no doubt, be multiple buyers that they will be competing against, so they will be prepared in more ways than one.
Knowing that if their offer is to be one of the ones put in front of the seller for consideration, they will make it as “clean” as possible.
They will have inspected many properties, made their comparisons, and done their due diligence, before even considering making an offer.
Pre Approved finance is important in “multi offer” situations
Their necessary financial “pre approval” will have been completed if they require finance to purchase their chosen property.
They will have explored different financing options and talked to a variety of lenders and obtained pre-approval.
Remember that lenders will want clarification of a good income, savings, credit history, stable employment and minimal debts before they will even look at loaning money to anybody.
They will also have visited a solicitor, who will have done the necessary “AML client onboarding” process with them ( anti money laundering checks) as is now required by law in some countries.
Without this AML “on boarding” requirement completed, the solicitor cannot act for the buyer.
So if a buyer is bidding unconditionally at an Auction for instance, their ability to adhere to the conditions required in an unconditional contract might be compromised, if the solicitor has not done the required customer due diligence on them, as a new client.
At the moment there is some help on hand for First home buyers, so do your homework first.
Click here if you are a first home buyer in Australia.
Click here for more information if you are a New Zealand First home buyer.
Remember when searching for a home, it is always better to be practical and not buy with emotion.
It would be silly to believe that the house with the gorgeous drapes could not possibly have termite damage, or perhaps a leaking roof.
Ensure that you get professional advice when it comes to building and pest inspections.
Lastly, make sure that you have extra funds available for the extra costs involved, like solicitors conveyancing costs, insurance, council rates, and removals.
Do not make a permanent decision on your temporary emotions
© 2020 e-propertymatters.com| Author| Kathryn