Real estate is a serious business and it is not just for the people buying the house, but also to those who are selling it since that is how they make their income. But Auckland real estate or Realtors from any other place live conflicted lives. This is because one hand they are indeed salespeople and so they are only able to make some money when the deal closes. But there is another side to them as well- they work as consultants too. They advise both sellers and buyers throughout the whole process of the deal. Often these two goals are aligned but there are situations when it’s not. How do you know if your agent isn’t misleading you? Here are some questions which they should be asking/telling you:
From just a financial perspective, one would want to move as little as possible. This is because moving is indeed a lot, especially once you add up the costs of moving, transaction fees, furnishing the new space, etc. Also, in the beginning when you will be paying off your amortized mortgage your monthly payment will go to interest. If you will hold the mortgage longer your payments will go on to paying principle. So not moving in a good idea to save up.
Not an investment
Many buyers have one common question, and that is whether a home is a good investment. It is better to not consider a home as an investment simply because investment should throw back cash but a home doesn’t do that. In fact, it does the opposite of what- it swallows cash. Moreover, the larger your home will be, the more expenses it will have.
Think for the long term
If the time gap is long enough, then almost all kinds of real estate will be increasing in value. The real problem is that the real estate market is a whole lot cyclical and no one actually knows when valleys or peaks will happen. So if your time horizon/ time gap is short then the chances of you getting caught in a valley period increase a lot. As such the longer you think of living in your house you are purchasing, the safer and better it will be.
Don’t be stringent with budget
A major attribute of an agent should be negotiation, especially when it comes to buying a house. Buyers would want to get the best deal possible. The truth is that the better a house is less negotiating leverage the buyers will have. Many buyers pass on a good home just because they weren’t able to get the discount they were hoping for. So in the end, they end up purchasing an inferior place later on. So keep your budget flexible a little so that if you like a house, but aren’t able to get a discount when you can still get it.
Most people want a house to be their dream home where they can lay roots. That should be the main motivation for getting a house. If that’s fixed, then with a little financial savviness, you will be able to get a great home.