22 Apr 1 hour speed buying – Darren Piper
It has been stated that in the time it takes to watch an episode of Game of Thrones, Australians are making one of the biggest decisions of their life – to buy a property. Research by ME Bank revealed that a vast majority of Aussies will make a decision to buy a property in one hour? Darren Piper says he has seen this happen.
Kevin: Here’s some startling news for you. In the period of time it takes to watch an episode of Game of Thrones, or anything on television for that matter, even cook a lasagna or listen to a podcast – although ours is a little bit shorter than what I’m going to talk about in this timeframe – Australians are making one of the biggest decisions of their life, and that is to buy a property.
Would you believe that some research out by ME Bank, where they surveyed about a thousand property owners, revealed that a vast majority of them will make a decision to buy a property in one hour? I want to talk about this with Universal Buyers Agents director, Darren Piper.
Good day, Darren. How are you doing?
Darren: Good. Thank you, Kevin. How are you?
Kevin: Good. I hope you spend more than an hour making a decision about a property to buy.
Darren: Mate, we certainly do. We certainly do go through all the checks and balances, and that’s what it’s about to ensure you’re buying right.
Kevin: Let’s have a look at this. I’m not disputing the research, but they say 58% of people spent less than an hour checking out a property. Really, this is one of the biggest purchases you make in your life.
Darren: Yes. It’s pretty crazy to think… When you look at the statistics that have come out with that survey that ME Bank have conducted, it’s startling – it really is. To put things in perspective, to go through and make the biggest purchasing decision in your life, to spend half an hour, 45 minutes, or even an hour there, it’s an interesting fact, that’s for sure.
Kevin: The fallout from this must be pretty high, too. Just reading a little bit further on, 26%, a quarter of homebuyers, found issues after they’d purchased the property.
Darren: That’s exactly right. Another interesting fact: around 36% of that group said that they missed picking up these issues because they just fell in love with the property and let emotions get involved or simply overlooked them. And that also might mean not understanding the complete transaction process and how to protect themselves.
Kevin: Pretty valuable lessons here for homebuyers, too, and that is to not show your emotion, particularly if you’re with an agent because that’s what they look for. They look for you to fall in love with the property. They look for you to start placing your furniture. These are the things that you shouldn’t do when you’re looking to buy a property.
Darren: That’s exactly right. A lot of the problems that have come up can be as small as paintwork or construction quality, gardens and fences, fittings, chattels – the list goes on. So, it’s very important to understand the transaction process and to put things in place to avoid making mistakes and costly ones at that.
Kevin: We talk quite often about doing due diligence. But there’s another aspect to this, too – and we’ve aired this on our program on a number of occasions – and that is to have a building and pest inspection done. No matter what, that should be just part of your contract, part of your due diligence.
Darren: Yes, that’s exactly right. There are a lot of agents out there at the moment, given that the market is competitive, trying to get buyers to go cash unconditional or absolute minimum terms. Every client we deal with, we always advise a building and pest, even if it’s pretty much new construction. It’s always worth having that clause in there to protect yourself.
Kevin: I think ME Bank – or it might have even been your advice – saying that people need to go back and look at a property a couple of times rather than just do it once and then make a quick decision within an hour. And even building and pest inspections, it’s a bit like insurance.
Darren: It is. That’s exactly right. Having that clause in the contract will protect you. It has to be satisfactory by your standards, so to speak. As I said, we always advise it. It’s a no-brainer for us, and it does protect the client. And whether you’re using a buyer’s agent or not, it does put that safeguard measure in place for you.
Kevin: So, bottom line here is don’t make decisions with your heart. Those emotional decisions may end up costing you something in the long run. Treat it like a business, and certainly have your building and pest inspections done before you secure the property.
Any other final messages from you, Darren?
Darren: Yes, the other thing, too, is to look at getting third-party advice pre-contract, whether it’s using a buyer’s agent or a company that does a pre-purchase inspection, whether that is just building and pest, depending on the sale method. But there are companies out there, including ours, that can assist to help avoid making mistakes.
Kevin: Universal Buyers Agents, that’s the company that Darren is from, and you can reach him on his mobile, 0423 853771. We’ll have a link associated with this interview, as well. Universal Buyers Agents. Mate, thank you very much for your time.
I guess the last message I want to give, too, is that if you miss a property, if you fall in love with a property and you miss it, remember, there will be another one around the corner. It’s not the only property on the market.
Darren: Could not agree more. There is always the next one, so, you have to be patient. You don’t want to be rushed into any transaction, that’s for sure.
Kevin: Good talking to you, Darren Piper. Thanks very much for your time.
Darren: Thanks, Kevin. I appreciate it. Bye-bye.
For more information about Darren, visit universalbuyers.com.au.