Looking to buy but not 100% sure how to go about it? Here are a few hints to help you find your way to the perfect home, with as little stress as possible!
1. Set Your Budget
It's crucial to know how much you can realistically afford. To help set your budget speak to your bank manager, mortgage broker or financial advisor. Calculate the Stamp Duty costs. [click here]
2. Work Out What You Want
Prepare a short list of preferred areas that suit your lifestyle or investment objectives, as well as a list of essential property features and desirable extras. Keep in mind that most buyers end up making some sort of compromise, so having a planned approach and focusing on what's really important will help you to make the best decision.
3. Arrange pre-approval for your finance
Opportunities can come and go quickly. Having finance pre-approved means you can be ready to make a move as soon as you find the right property.
4. Get a feel for the market
It's important to do your research before jumping in. Once you have a clear idea of your budget and needs, start attending open houses and auctions of properties in your preferred area to get a feel for market prices. You can increase your market knowledge by researching recent selling prices using the Recent Sales, utilising real estate.com or by purchasing reports from property information providers such as RPData.
5. Talk to Our Agents
At Combined Real Estate, we welcome the opportunity to assist you with your search. If our agents know what you are looking for we can help guide you in your search. We are also able to offer additional advice and alerting you to new listings before they reach the media.
6. Ask for a Copy of the Contract
When you find a property you are interested in ask the agent to send a copy of the sale contract to your solicitor or conveyancer. They will advise you of any issues you may need to consider.
7. Arrange a Building & Pest Inspection
Your solicitor will normally insist on seeking a pest and building report. This will alert you to any hidden structural problems or pest issues.
8. Make an Offer
Once you have the solicitor's and the inspectors' reports you can make a confident offer to the agent. They will then negotiate the final sale price between you and the vendor. A cooling off period applies unless you choose to waive this.
9. Buying at Auction
If you intend to bid at auction you must bring appropriate identification and register as a bidder. Someone may only bid on your behalf if they have a binding authority form signed by you. If the property fails to reach reserve, the highest bidder normally has first right of negotiation.
10. Pay Your Deposit
Once your offer is accepted you will need to sign the sale contract and pay a 10% deposit. Until the property is settled the deposit will be held in trust in an interest bearing account, with the interest shared between you and the vendor.
11. Exchange Contracts
Once negotiations have been finalised, you will be required to sign the sale contract and pay a 10% deposit which will be held in trust until settlement. The vendor will sign their copy of the sale contract, and the solicitor/conveyancer or agent will 'exchange' the contracts.
Note: It's important to be aware that up until the 'exchange' has taken place, agents are legally obliged to submit all proposals from other buyers to the vendor, and there is a risk that the property could be sold to someone else.
12. Inspect Prior to Settlement
It is wise to undertake a pre-settlement inspection of the property. This will ensure that the property is in the same condition as when you agreed to buy it and that all the inclusions meet the contract specifications.
13. Pick up the Keys
Once notified that settlement has been finalised your agent is able to give you the keys to your new home.