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There are many potholes and pitfalls for the unwary homebuyer.

16 May

Traps That Exist in Buying a Home

Posted in Business on 16.05.09

There are many potholes and pitfalls for the unwary homebuyer. Simply believing the agent when he tells you what the price is could cost you heaps. Easement and boundary checks are vital. Sure, that might be the price the seller wants, but is it the true market value? If it's not, let someone else buy it. Remember the agent is acting on behalf of the seller so it's up to him to get the best price he can. You may have some idea of adding rooms or putting in a pool, but unless the boundaries are exactly where they are claimed to be, what you plan may not fit.

This is especially so for older blocks and homes. And if there have been renovations done already then check to see they are legal. Anything done without proper council approval is just asking for trouble. Sure, that might be the price the seller wants, but is it the true market value? If it's not, let someone else buy it. Remember the agent is acting on behalf of the seller so it's up to him to get the best price he can.

Never be hassled into exchanging contracts before any inspections. Be suspicious if the agent wants to settle quickly; it could be because there is a big problem they don't want you to find. You might find what you believe to be your dream home, but is it in your dream neighbourhood? Go back on various days and at different times to see what it's like. What appears to be quiet at midday could be noisy in the evening.

Easement and boundary checks are vital. You may have some idea of adding rooms or putting in a pool, but unless the boundaries are exactly where they are claimed to be, what you plan may not fit. This is especially so for older blocks and homes. And if there have been renovations done already then check to see they are legal. Anything done without proper council approval is just asking for trouble.

Author: Melanie Click