House, location or price: What's the most important factor for you?

GUEST OBSERVATION

Are you a house buyer, a position buyer or a money buyer?

Knowing the answer to this question before you start searching will help when it comes to the pointy end buying your next home by providing you with clear direction as to why you are doing what you are doing and potentially help understand the risks versus the rewards.

A focused mind is far more likely to stick to the plan than one that is fraught with unanswered questions.

How do you know what sort of buyer you are?

Answering these questions may provide some insight:

• Are you attracted to homes with a pretty façade?
• Are you attracted to homes with the most current fixtures, fittings and colours?
• Is it essential that you can walk to the station?
• Do you mind if there are flats or townhouses in your street?
• Are you looking for neighbours who are at a similar stage in life to you?
• Do the children need to walk to school?
• Do you only like new homes?
• Is it more important to be close to the shops on a busy road, or further away on a quiet road?

A house buyer is a buyer focused on what is inside the boundary of the property. The house, the flow, the condition, the style, the garden, the spaces etc.

A position buyer is a buyer who may be prepared to compromise on the house for a location that meets their needs – i.e. within 500 metres of the beach, shops, station, schools and transport.

A money buyer can be someone who only wants to buy something that is perceived to be cheap, however, it may also be someone who is focused on financial growth and outcomes.

Many buyers are a combination of all three, however, unless they have a lot of flexibility with their budget, for many the house may be more important than the position or vica versa.

It is important to clarify what type of buyer you are before you start searching as there may be risks emotionally and financially if you are unclear. You may find yourself purchasing a home that doesn’t work, potentially resulting in the need to move or renovate which can be both emotionally and financially challenging.

Buyers may also wish to consider what type of buyer they may be up against at auction. Understanding the competition and having an appropriate strategy planned before the day will help you achieve your goals.

If you are unprepared before you enter negotiations to buy your next home, it may stop you from doing what needs to be done to achieve your goals.

Kristen Hatt is principal buyer advocate at James Buyer Advocates, which advocates on behalf of buyers of property over $1 million. Weekly auction reports, advice and in-depth market analysis are available on James' website.