Many first-home buyers come to me complaining they can’t find a property – but here’s why I think some of THEM are the real problem
An estate agent has accused first home buyers of being too picky and urged them to better manage their expectations.
Amir Jahan, 25, owner of A-Class Agents, says he increasingly sees buyers ‘wanting it all’ and missing out on opportunities because of the drive for ‘perfectionism’.
“They expect a palace because they are too excited about the first purchase. They want everything to be perfect,” he told Daily Mail Australia.
“You can’t find something that’s 100 percent perfect because everyone has different taste.”
The supply of housing in Sydney is at an all-time low. Demand from buyers and renters is skyrocketing, driving up prices. Prices are expected to rise even further.
According to the latest data from CoreLogic, the average house price in the New South Wales capital is $1,473,038, while residential property prices are $852,766.
Mr Jahan advises first home buyers to focus on the ‘basics’ of a home and what they can afford, rather than the superficial things that can be changed later.
“There was once a man who didn’t buy a house because he thought it needed a new extractor hood above the oven,” he said.
Amir Jahan, 25, (pictured) has noticed some rising trends among first-home buyers, such as being too picky and wanting to show off to their friends
The Sydney real estate agent said first-home buyers need to do their research so their expectations are realistic, otherwise they could miss out on great investments.
“You can pay $400 for a new hood. Why miss out on something that could be worth a $400 repair?
‘After months of searching for the perfect place, the man of course came back to me and said what everyone always says: “I wish I had bought it.”‘
Mr Jahan said he has also noticed an increase in the number of first home buyers, who want to buy a country house for a small investment.
“They’re expecting a castle,” he said.
“They don’t realize what they can achieve with money, but their standards are incredibly high.”
He indicated that buyers ‘buying for the wrong reasons’ is a major problem.
“Sometimes someone who is buying a home for the first time doesn’t think it’s a place they’re going to live or their first property. They want to show it off to friends and family,” he says.
A buyer who knew Mr Jahan paid more for a one-bedroom apartment than a three-bedroom apartment because it had a nice view and “nice tiles”.
“When I told her she could buy a three-bedroom house for the same price, she said, ‘I want a nice house so that when my friends come over they immediately say, ‘Wow,’” he said.
“The one-bedroom homes in the neighborhood have gone down in value, but she could have made money on a three-bedroom. They’re worth their weight in gold. There aren’t many for sale in her neighborhood right now.”
Mr Jahan has also noticed a worrying trend of buyers wanting to purchase a home without doing any research.
The successful estate agent (pictured) said there are more and more first home buyers expecting a ‘castle’ or ‘country home’, making research even more important
“They don’t do enough research to figure out exactly what they want,” he said.
“Don’t look at 200 two-bedroom apartments for six months.
‘Decide exactly what you want.’
According to Mr Jahan, it is even more important for buyers not to wait too long after receiving financial approval, as pre-approvals are typically only valid for three months.
After this period, a new application may impact a buyer’s credit score.
The officer also said that people need to take action as prices continue to rise.
“Do your research and know what you want, otherwise by the time you make a decision, you may not be able to get what you wanted six months ago,” he said.
The broker has also seen an increase in the number of bank loans from moms and dads and warns that while this is a good option, there can be downsides.
“If you take money from your father or mother, don’t always accept their advice,” he said.
‘It can lead to a purchase being postponed because what the new generation wants clashes with what the older generation thinks is good for them.
‘Investment advice can be fine. Just make sure they don’t force their taste on you – which is what I see all the time.
“Their opinion can get in the way, but you should be happy if you’re going to live there. If it makes you feel good, go for gold.”
Mr Jahan warned buyers to hide their enthusiasm from agents.
“Don’t show that you’ve fallen in love with a property. Many real estate agents will take advantage of that,” he said.
‘There may be no other interest in it, but the agent will use it against the buyer (who loves the property) to try to get the highest amount he can get.’