Page 14 - Smartline eBook - Upgrading your home
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Here are some tips on how to get the best value for money when you buy:
1. Know the market
If you have a good knowledge of the market in the area you’re interested in buying in, you’ll understand what properties are worth and be able to negotiate accordingly. Suburb reports from your Smartline Adviser provide a great starting point but you should also consider spending at least a few weeks looking at properties on the market and finding out what they sold for.
2. Don’t name your price
If a property ticks all your boxes it can be tempting to start talking price straight away. But when you really love a place, you may value it more highly than it is actually worth, and more than the vendor expects. Never tell the agent what you think a place is worth; instead, ask them what they think it will go for, or the price the vendor wants.
3. A united front
If you are buying with a partner, decide together beforehand what you can afford and stick to it. Only ever have one of you dealing with the agent, otherwise they can play you off against each other.
4. Keep your distance
It’s not social; it’s business. Keep conversations with the agent short and businesslike and don’t discuss anything personal, why you want the property,
or your ability to pay.
Timing your purchase
If you plan to stay in your new home for less than 10 years, pay close attention to
the price trends and forecasts in the market where you’re buying. Prices can change substantially even within a year or two, so ideally, you’ll need to be flexible about when it’s the right time to buy and sell, and try not to buy at the top of the market cycle. If you plan to stay longer, however, timing is less critical and you may be able to focus more on simply buying your dream home.
Buying vs. selling first
Selling first:
Once you’ve sold, you’ll know exactly how much you have to spend on your next house.
You will avoid bridging finance which, can be expensive and put pressure on you to sell.
You may need to find temporary accommodation before you buy, which can be expensive, stressful and disruptive. However, you could ask the buyer if you can stay in the property and rent it from them until you buy or negotiate
a longer settlement.
Upgrading your home

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