You've found your dream home! But what are some signs that maybe your dream is about to become a nightmare? Read on ...
- The property valuation is significantly lower than what the vendor is asking for, and the vendor will not reconsider their asking price. Purchase at the higher price, and you run the risk of finance not being approved at all, or for the full amount.
- If you purchased the home, you'd stretch your finances beyond your means, and that's without taking into account increases in interest rates that will almost certainly occur along the life of your home loan.
- The building and pest reports / strata reports signal extensive damage - particularly to the foundations, or very large (and potentially ongoing) special levies (for a unit) have been signaled.
- There are nearby developments planned that will obstruct the view: the value of which has been incorporated into the asking price of the property, and the vendor is not willing to drop their asking price.
- You discover there is a problem with the Title of the property, such as easements or caveats.
Some of these issues can be worked through and perhaps signal downwards negotiation of the price, however, potentially the current buyer will be faced with the same (selling) dilemma from the next buyer when it comes time to sell. Within the Sydney market, with so many properties to choose from, my advice would be ... next!
A word of caution: to a novice buyer, some of the more typical Issues found in building and pest or strata reports can deter buyers unnecessarily. Most issues are more minor and can be worked through, typically with negotiation of the purchase price, the vendor's willingness to repair / replace whatever is broken / damaged, or a meeting with the Strata Committee / Strata Manager. A Buyer's Agent can help you to determine what is truly serious - a big red flag - versus the less serious matters that can- and ought to be - worked through.