3 Mistakes Buyers Make

Working with buyers across Sydney, whether I’m competing against them, overhearing them at open homes or getting feedback from agents, I see three mistakes come up again and again. These mistakes cost buyers the property they wanted, or money they didn’t need to spend. Here they are, so you can avoid them.

1. Making an offer before qualifying

Qualifying means uncovering information to work out what you need to do to be successful. Buyers start out okay by asking the agent, “What price does the owner want?” But when the agent replies, “Our guide is $X, we’re open to offers and I’ll submit anything to the owner for their instructions,” the buyer ends the qualifying there. They leave the property, think about it over the weekend and put an offer in the following week.

The problem is that the offer is just a number thrown out there in the hope it sticks. The agent still holds all the information about the vendor, the competition and the process they’ll run, and the buyer knows none of it. You’re no closer to finding out what the owner will accept, what other offers have been made or how close you are. You’re left waiting, at the whim of the agent and the owner.

Instead, keep the conversation going before you commit. Ask about the offer process: Is there a deadline? Are there other offers? What terms suit the vendor? Then ask what the agent would support. (Use common sense to decide how, when and where to ask these questions.)

Agents will often deflect with “the vendor makes the decision.” That’s fine. Follow up with:

• “What would you be recommending to the owner?”
• “What usually happens in these circumstances?”
• “If I offered around $X, would you support it?”

Their answers (and their hesitations) will give you excellent information. And if the agent is keen to do a deal, they will work with you. The goal is to gather information so that when you do make an offer, it’s based on strategy rather than “wait and see.”

2. Not prioritising the property and missing out

If you like a property, don’t assume you can wait.

If you inspect a property you really like at the Saturday open, don’t just wait for the agent to call you back. By the time they do, they may already be working with another keen buyer, and you’re on the back foot.

In a slower market like this one, buyers don’t feel the urgency, so they think they’ve got more time. But if it’s a good property, it only takes one other buyer to get their pre-approval tomorrow, walk through and love it, and the opportunity slips away.

I understand that buyers work full-time and that property searching takes a lot of time and emotional energy. But the agent won’t hold a property because you’re busy. If you’re serious, the property has to come first:

• Text the agent after the open and get a copy of the contract.
• Call the agent on Monday for a rundown on offers so far and the anticipated process.
• Email the contract to your conveyancer.
• Book inspections and reports early if there are no red flags.
• Check in with your mortgage broker about any red flags.

Being prepared reduces your stress if another buyer shows interest. Being on top of everything can also deter other buyers, as it becomes “all too hard” for them to get their act together quickly.

3. Assuming the contract review, strata report and building and pest cover everything

These three are essential, but they’re the minimum. Many buyers get a clean contract review, a tidy strata report and a decent building report and think they’re done. But there’s a lot those reports don’t tell you, for example:

• Overlays, zoning and rezoning.
• Approvals for extensions and alterations.
• DAs and council plans.
• Easements.
• Sale history.
• Nearby infrastructure.
• Ownership mix in the street or building.
• Strata finances.

Due diligence is about whether this is the right property at the right price, not just whether the building is sound.

Buying well comes down to having the right information, acting at the right time and checking what others miss.

How I can help

• Full Search: For buyers who can’t dedicate their days to property, are struggling to find the right one, are unsure about due diligence and price, or don’t want to negotiate or bid. Support from start to finish.
• Collab Search: For buyers happy to search and shortlist but unsure about due diligence and price, or who don’t want to negotiate or bid. Support throughout your search.
• Evaluate & Negotiate: For buyers who’ve found a property but are unsure about due diligence and price, or don’t want to negotiate or bid. Support for a single property.
• Ask Me Anything session: For first home buyers unsure where to start. One hour, all your questions answered.