Netflix and too chill: house hunters cutting corners on inspections

According to a new study, more than half of Australian house searchers spend the same amount of time investigating a property as they do watching an episode on Netflix.

This is something that we are aware of as well. You see a house you like and you want to buy it right now, faults and all.

Make sure you take a deep breath, because FOMO may be pricey, with a third of recent buyers confessing to having “buyer’s regret.”

If the lender’s appraisal isn’t what you expected, not conducting your due diligence on a property can have ramifications when asking for financing.

And it turns out that right now, a lot of house hunters are jumping in before they even look.

Even though it was one of the biggest purchases of their lives, 55% of house searchers spent less than 60 minutes checking out the property they eventually purchased, according to a recent poll of 1,000 property owners by lender ME.

It’s about the same length as a typical Netflix episode of 55 minutes.

COVID-19's effects

During COVID-19, it turns out that we haven’t only gotten better at bingeing.

Buyers’ time to see properties has also been decreased as a result of COVID-19.

However, it isn’t always the fault of the buyer.

“Real estate regulations hampered their ability to inspect and purchase their house,” claimed about two-thirds (65%) of recent buyers.

Surprisingly, over half (45%) of purchasers who were subjected to a lockdown acknowledged sneaking up on vendors and asking for an inspection, as well as looking at images and/or videos of the property.

Hidden issues

After moving in, about 61 % of Australian home purchasers discovered difficulties with their property due to a lack of inspection time.

Around 40% of this group said they missed the issues because they “lacked the skill or experience in inspecting the property”, while 33% simply “fell in love with the property and overlooked them” and 18% were “impatient and concerned by rising prices” because they “lacked the skill or experience in inspecting the property”.

Construction quality (32%), paintwork (28%), gardens and fences (23%), furniture and accessories (21%), and neighbors (21%) were the most common post-purchase issues (17% ).

The following are some of the owners who raised concerns:

– Following the transaction, 34% of buyers expressed “buyer’s regret.”

– Had they known about the difficulties sooner, 58 % would have paid less for the property.

– 84 % have either spent money or are planning to spend money correcting, replacing, or enhancing the concerns stated.

What is the story’s moral? When buying a home, you’re always dealing with emotions, which might impair your judgment.

John Powell, ME General Manager, says, “Give weight to any nagging hunches that give you cause for concern and get a competent property inspector to do the looking for you.”

To buy a property with full confidence knowing you’ve had good financial backing, it’s also crucial to know your borrowing capacity ahead of time.

Contact us to find out how much money you can borrow.

As previously stated, it’s critical to know your borrowing capacity before embarking on a house hunt to ensure that you don’t overextend yourself.

So, if you’re interested in learning more about what you can borrow, contact us right now. We’d be delighted to sit down with you, take a deep breath, and assist you in figuring it all out.

To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au


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