A recent survey shows that more than 50% of house hunters in Australia spend as much time inspecting a house or property as they would watch a Netflix episode.
But even if you fell in love at first sight of the property, taking the time to thoroughly inspect every corner can go a long way in preventing buyers’ regret.
About one-third of recent first-time home buyers claimed to have regretted their decision after rushing the purchase due to the fear of missing out (FOMO).
Neglecting your due diligence can cause trouble for a loan application, especially if the property’s valuation doesn’t meet your first impressions and expectations. This issue happens to 55% of house hunters who spend only 60 minutes inspecting the residential property before purchasing it.
That’s roughly the average running time of a standard Netflix episode!
COVID-19’s Impact on House Inspection
While COVID-19 caused more people to binge more Netflix episodes, it drastically reduced the amount of time potential buyers have to inspect houses and properties.
About 65% of home buyers admitted that the consecutive travel restrictions affected their capability to carefully inspect a property before purchasing it.
Moreover, roughly half of buyers impacted by municipal lockdowns have secretly knocked house vendors to inspect their properties. That means a house inspection may only last a couple of minutes and is mostly about looking at photos and videos of the property sent online.
Rushed Inspections Overlook Underlying Issues
By spending only an hour inspecting the property then buying it immediately, you tend to overlook hidden issues in the house’s structural, aesthetics, or functional features.
About 40% of home buyers admitted missing severe issues after a house inspection due to lacking the experience and know-how to thoroughly check the property. Roughly 32% claimed to have fallen in love with the house and bought it without checking any faults and concerns. Finally, 18% bought their property immediately due to the fear of missing out and the rising residential prices.
The most common hidden issues with newly-bought houses include:
- Poor construction quality: 32%
- Fencing and garden structures: 23%
- Paint job: 28%
- Chattel, fittings, and furniture: 21%
- Neighbours/location: 17%
Among the owners who responded with the above numbers:
- Roughly 84% spent extra money on renovating, replacing, or fixing the identified issues.
- 58% wished to have paid less for the house/property after realising the underlying issues.
- About 34% claimed to have experienced buyers’ regret post-purchase.
To sum it all up, emotions have a lot to do with our buying decisions — whether a small craving or a significant investment like a property. Make sure to always give weight to practical factors and points of concern when inspecting a property.
But you can always seek professional help from a property inspector if you’re not confident with your knowledge. You may end up saving time and money by hiring an expert.
It also helps to properly assess your borrowing capacity so you’ll know if you can purchase the property with confidence and solid financial support laid out.
Get In Touch to Assess Your Borrowing Power
Knowing your borrowing power and current financial situation before venturing into a residential investment can go a long way in protecting your finances.
Don’t hesitate to reach out to us today, and we’ll sit down with you, thoroughly discuss your situation, and let you know about any opportunities that suit you best.
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