It’s a story you’ve probably heard before, or perhaps you’ve even been unlucky enough to experience it firsthand: after years of saving and hard work, a young couple is finally ready to enter the property market and the exciting time of buying their first home arrives. However, to their dismay, the whole experience turns out to be quite different from what they had expected. After all that scrimping and budgeting they are ready to meet with all the various people involved in their real estate purchase, only to realise that the industry is a shark’s nest of professionals all telling them lies of one kind or another.
A first time home buyer’s experience typically goes like this:
The young couple think they’ve saved enough for a home deposit – generally 10% to 20% of the anticipated purchase price of a home they are interested in and can afford.
Then, our first time home buyers go off to consult with a lender or mortgage broker who encourages them to apply for a home loan but misleads them by exaggerating their chances at getting loan approval at a particular price level – LIE NUMBER ONE
Next, our home buyers scour the internet for the home that they have always dreamed of. They see photos of beautiful looking houses which appear large and blemish free – these are often actually retouched pictures taken with a wide angle lens – LIE NUMBER TWO
Upon visiting some of these properties and meeting a vendor’s agent they feel disappointed at how small and run-down the property actually is in the light of day – LIE NUMBER THREE
At the inspection, the vendor’s agent advises our young couple of the likely selling price of the property ( however, the couple is unaware that the agent has made a prior agreement with the vendor to under-quote) – LIE NUMBER FOUR
Within a few days before the scheduled auction, the real estate agent calls the couple to advise them that, due to the huge interest in the property, the vendor has decided to increase the reserve price (this is an agent’s tactic to avoid being accused of “underquoting”) – LIE NUMBER FIVE
Despite this, our first time home buyers are encouraged by the vendor’s agent that if they bid to their maximum pre-approved loan level, they could be successful at the auction – LIE NUMBER SIX
Then, advised by friends to get a building inspection report, the couple decide to get some building and pest inspection quotes online. They eventually decide to go with “Big Bob’s Great Inspections”, who claim that they will tell them everything they need to know – (But Big Bob doesn’t tell them he is, in fact, unlicensed and will leave out 50% of the building condition information they actually need) – LIE NUMBER SEVEN
Finally, the young couple attend the auction – the bidding starts – OMG! it actually starts above the figure that the vendor’s agent suggested was the revised reserve price. Then, the price rapidly escalates to sell for a whopping 20% to 30% above everyone’s expectations – SO MANY LIES
Sound familiar? Unfortunately, it’s a story that’s all too commonplace in the Melbourne property market.
How could this happen? Where was the professional guidance?
The mortgage broker misleads them, the vendor’s agent is misleading them on multiple levels, the buyer’s other consultants and advisers are all in it to receive a fee – but only if the property sale goes through.
The bottom line
The only professional who is truly independent and who is wholly on the buyer’s side is their Building Inspector – and only then if it’s the right Building Inspector.
To find out more about how Building Masters Inspections can help you get the right home for the right price, contact us today on 1300 780 931 or via our website.
Afterall, buying your first house should be an exciting experience.