Property prices have been on a long decline since the third quarter of 2021. At the same time, interest rates have continued to rise due to the impact of U.S. interest rate hikes, causing buyers who bought off-the-plan properties in the early years to lose their budget. In addition, as the property market sinks, new first-hand properties have also been added. There is a lot of supply, and developers are constantly cutting prices in order to secure shipments. The prices they offer are often lower than those of second-hand private properties in the same area. There are also many cases where the prices are cut again in the short term due to unsatisfactory sales conditions. Due to the combination of various factors, the property market continues to see cases of new property buyers placing orders. Of course, the above are just general environmental factors, and the reasons behind each order may not be the same. But if the buyer is really forced to order, what should be done? How can you effectively avoid overordering?
After the buyer has searched for the unit he likes, he needs to sign a provisional sales and purchase agreement (provisional agreement) with the seller. At the same time, he must pay a detailed deposit as a deposit, which is the price of the property 5%. According to the First-hand Regulation, the buyer must sign the sales contract with the seller and pay the remaining deposit within five working days.
Deposit will be forfeited
If the buyer's 5% deposit is not placed after signing the preliminary contract, the buyer's 5% deposit will be forfeited. If the buyer fails to place a reservation after signing the preliminary contract and sales and purchase agreement, he will not only face the confiscation of the entire deposit, but may also have the developer resell the unit and collect the price difference. The developer has the right to resell the unit within six years. , chasing orders from tart buyers. As for the purchase of second-hand properties, the loss caused by the buyer's late ordering may be greater than that of first-hand properties. First of all, if a reservation is made after signing a preliminary contract, the buyer's deposit will be confiscated by the seller, and commissions will also be paid to both real estate agents. Note that both the buyer and seller need to compensate for the real estate agent commissions.
If the buyer makes a reservation after signing a formal contract, not only will the deposit be forfeited and the buyer and seller need to pay agency commissions, but they will also have the opportunity to face the same situation as a first-hand property. When the unit is resold in the future, the seller has the right to demand payment from the buyer. The company will collect the price difference, and the recovery period is also six years. If the order is made by the seller, in addition to paying commissions on both sides, the buyer may also be required to pay double the deposit. If during the transaction process, the buyer and seller or one of the parties has hired a lawyer, the contracting party must pay the lawyer's fees to the other party. Due to the recent instability in the market, there have been many cases where buyers were unable to successfully attend the meeting. For example, after the buyer signed the contract and applied for a mortgage, the bank informed him that the property valuation was insufficient, causing the buyer to lose their budget and unable to raise money temporarily. The money was met and a guarantor was added, but the result was that the order needed to be made.
It is advisable to prepare sufficient down payment
There may also be temporary problems due to economic conditions, etc. To avoid late booking, the best way is to prepare sufficient down payment, so that in case there is a gap in the bank's valuation, there will be funds to raise it. In addition, it is also advisable to prepare a guarantor so that you are prepared in case of emergencies. If you want to increase the "safety factor" even more, in addition to using online mortgage tools to calculate whether you can "pass the mortgage", the best way is to find a reputable mortgage referral company to assist you with the buyer's personal finances. situation and the property you like, get the latest valuation and estimate the mortgage approval success rate. After all, online tools may not always be updated in a timely manner. If you use the wrong tools and make wrong assessments, you will lose more than you gain.