Home in Canberra – Common pitfalls when selling or buying?
Buying or selling a home in Canberra is one of the most significant financial transactions that anyone makes. Both the home buying and selling necessitate avoiding expensive mistakes.
What are the current market conditions that provide home sellers and buyers opportunities?
According to CoreLogic, in 2020 only 5.3% of homes were listed for sale. This number is down 6% compared to 2019. In 2020, housing value increased by 3% nationwide. As a result, there is a mismatch between available home supply and home buyer demand. This is good news for anyone willing to sell a home.
According to another research, one out of every 5 Australian suburbs (21.4%) witnessed an increase in property listing numbers. There have been 7% more residential properties offered for purchase compared to the previous year. The hike in property listings count benefits buyers. They can now negotiate for a lower purchase price.
Unparallel circumstances has marked 2021. For instance, there are:-
- Record-low borrowing rates
- Government incentives
- Improving economic confidence of estate investors
As a result, these factors makes favorable market conditions for estate buyers and investors.
Three Common Mistakes Property Buyers And Sellers Make
Let us find the three common pitfalls property buyers and sellers face. Additonally, suggested are the ways to avoid them:
- Half read or misunderstood agreements
Firstly, home buyers or sellers sign many contracts during home buying and selling. These include loan contracts, authorities to sell, title transfer contract and many more. Hence, both home buyer and seller should understand all terms & conditions and fine print.
Equally important is, seek the professional advice of real estate Canberra agent before signing any contract. Additonally, keep a copy of all signed documents as a record comes in handy.
- Not hiring a personal legal conveyancer
The homeownership title transfer from the seller to the buyer is land conveyance. Both the home buyer and seller can have separate personal legal practitioner or conveyancer.
Now, their duty is to protects the interest of their client in the deal.
A licensed conveyancer undertakes:-
- Property conveyancing
- All the legal work related to the deal
- Also, give legal advice about the title transfer whenever needed
Independent legal advices help to evaluate the advantages and disadvantages of holding a title.
- Not checking the settlement period
The settlement date is the pre-fixed in estate deals. On this date, the seller receives their remaining purchase price balance as full and final payment.
Furthermorer, the property title is transfered in the buyer’s name after clearing the payment. Mostly, the home seller sets up the settlement date in the contract. This ranges between 30- 90 days.
Indeed, before signing the contract, a home buyer may negotiate to reschedule the settlement period.
Home buying or selling begins with determining the actual worth of a home in the real estate deal.
Simultaneously, hiring a real estate agent is of great help. S/he enables understanding the legal procedure and the technical aspects of the estate deals.
To conclude, always keep in mind that “Awareness is a Strength”!