What do we mean by “Time cost” of buying property:
Overtime as the Real Estate market continues to evolve, most people are very familiar with the monetary cost of purchasing a property, whereas less people pay attention to the “time cost” of buying a property.
Time Cost can be defined as time spent during the process of purchasing a property which happens to be an integral factor in eventually making the right decision, it is equally as important as every other cost factor required in buying a property.
Time cost in numbers:
According to statistics, most first time buyers will take within 5-12 months to identify the right property to buy, while seasoned buyers will take 3-6 months on average.
The research also goes to show that a whooping 85% of home buyers say they are “fairly satisfied” with their purchase while only about 5% derive absolute satisfaction from their purchase (home of their dreams), which leaves us with a 10% desired demographic between “fairly satisfactory” and “home of my dreams” and this is where we aim for.
Importance of Time cost
Customarily, buying a property is the largest single-expense a lot of people have had to make in their life. Buyers must look at different alternatives to find the right property to match their needs. Exploring multiple options gives buyers an advantage in making the important decisions in buying a property. Having highlighted this, It is also important to keep track of market trends in your location and the location you intend to buy a property. Naturally there are multiple factors that affect the real estate market (Prices and availability), and keeping track of those can be extremely important.
How does “Time Cost” cost buyers?
As Buyers take time finding a property. (1) brain fatigue just from looking at so many properties which can lead to poor decision or pressure buying. (2) buyers can miss a market advantage in terms of exchange rate, lower price market, inflation, etc. (3) excess time buyer spends searching multiple properties can be channeled to business or family time. (4) High levels of stress developed during prolonged period of search may lead buyers to give up all together.
Therefore, these are 5 tips to managing time cost and getting into that 10% desired demographic.
- Do your research, carry out a thorough research before delving into trying to buy any
- Identify and deduce your purpose for buying the property, there should be a clear purpose
as to why you’d like to buy any property.
- Determine your maximum available budget.
- Find the right real estate agent suitable for you and trust the real estate agent to have your
interest at heart.
- Keep an open mind.
In the end, remember that the final decision is always in your hand, so keep a cool head and do not make any decision or any purchase under pressure that you may regret subsequently, there’s always another option out there in the market.