Real estate agents help identify and solve their client’s worries about the property market.
Here are the top 5 common fears that are holding back buyers.
- Fear of paying too much
Many buyers feel that they are navigating the property investment market blind because of the lack of accurate price guides and the usual method of buying via auction which has no price guide.
The result is that some buyers become overly cautious, spending too much time on researching on an ever-changing market and end up with analysis paralysis in which they are unable to decide whether they should move forward or not.
The only way to conquer this fear is by conducting market research diligently. Don’t take price guides too seriously; do your own sales research, seek experts for advice and rely on current data. Just make sure your research doesn’t hold you back from acting if you come across the right property.
- Fear of purchasing the wrong property
Another common fear among buyers is the fear of missing out on the right property.
Buyers tend to be undecided on many issues. Do they buy a smaller house closer to the city or do they choose a location much further where houses and lands are bigger? Do they buy a house that they renovate or something that is already complete? Which suburb is better to live in?
Real estate agents advise buyers to make time to outline a strategy for their property purchase. Your strategy should take into consideration several factors including where you’re at in your life right now, your short term personal/family goals and things that are important to you, etc.
It comes down to understanding your priorities. There are not many people that can afford to compromise when it comes to buying property.
- Fear of past experience with selling agents or auctions
Some buyers can be overwhelmed by the process of buying a property. These buyers include those who are entering the market for the first time or those whose experience with an agent, purchase or auction were not so good.
Some people think that they will be scammed by an agent because they’re not transparent.
You can overcome this fear by doing research on the common buying processes such as negotiating for a private sale or bidding at auction.
Get to know your local agents and you will soon learn how they do business, each of their differences, and become more comfortable in dealing with them.
- Fear of the property market crashing
No one can accurately forecast the movement of the property market, leaving some buyers fearing a bubble or a crash.
Some buyers fear purchasing at the peak of the market and paying a high price and that the market might crash. Or if the economy weakens, they might lose their job and become unable to pay their mortgage.
While investors may need to watch the market to know the right time to buy, others might not need to do this. For example, if you’re purchasing a home and plan to live in it for a long time, the market is less of a worry. The perfect time to buy is when you’re financially and emotionally ready.
- Fear of missing out – FOMO
The intangible fear of missing out is the most emotional of all property fears. This when buyers feel that the right property is coming soon and they will miss it if they purchase now.
You shouldn’t focus on what properties have already been sold or what properties may be for sale next week. This is pointless. What you can do is to ensure you have carefully covered the whole existing market and learn what the pipeline looks like over the next few weeks.
Fighting the fear
A little fear is all right, normal even. But as everything in life is, too much of anything is bad. What are the fears that are holding you back from the property market and how can you overcome those fears?