6 Steps to Buying a Home
Purchasing residential real estate can be a very exciting process, however it can also be a confusing time for the prospective buyer. As you may already be aware, different agencies usually have different sets of rules and standards, so we would like to inform you of the general buying process.
1 - RESEARCH THE MARKET
The first step is to research the area in which you are interested in buying. Consider what amenities are available and what most suits your needs. Visit open homes for inspection and look at recent sales in the area to give you a guide to the price range you may expect to pay.
2 - MONEY
Once you have established your needs ask yourself what can I afford to spend? Buyers should always strive to accumulate the highest deposit possible to lower borrowing costs. Some lenders require you to pay mortgage insurance if your borrowings are over 80% of the purchase price.
Take into consideration stamp duty and legal fee costs. Unsure where to go from here? Talk to your bank or financial institution or consult a mortgage broker to determine your spend limit and ascertain a loan pre-approval, this will help you have better buying power in the market.
3 - INSPECTIONS
Now that you have established your preferred area, property type and spend limit contact us to see what we have available that may be suitable for your needs. Often agents will have properties coming up that are not yet advertised to the public - this is a good opportunity to introduce yourself and get your foot in the door first.
4 - SUBMITTING A FIRST OFFER
Property owners receive all types of interest - some genuine, some not. Some people submit offers to test the possibility of sale, but do not actually stay true with their offer.
This can lead to frustration and concern for the owners as they try to assess who is actually a genuine buyer. The best way to present a strong offer on any property is to present the agent with the follow information:
- The actual purchase price you are prepared to pay for the property
- The method in which you can pay the holding deposit. Eg. Direct deposit
- The settlement period you require
- The name of your chosen Solicitor or Conveyancer
- A copy of the pre-approval document
- Any special conditions or requests that you may have so that we can inform the owner upon submitting the offer. E.g. Building and Pest inspection, subject to finance approval.
5 - CONTRACT OF SALE
If the owner accepts your offer a Contract of Sale document is signed - This is a legal binding contract and advice should be sort from your Solicitor or Conveyancer if you have any concerns. The contract may be subject to a 5 business day statutory cooling-off period. A termination penalty of 0.25% of the purchase price applies if the Buyer terminates the contract during the statutory cooling-off period. After this time the contract will be subject to the special terms and conditions as outlined in the contract and mentioned above.
It is the buyer’s responsibility to ensure all inspections and conditions are met within the time frame stated on the Contract of Sale.
6 - COMPLETION
Once all the conditions of the contract have been met the contract will then be deemed unconditional and will await settlement date. Now is the time to consider the move - booking removalists, connecting electricity and telephone, etc. On the day prior to settlement it is beneficial to inspect the property in the current state with the agent and advise if you have any concerns.
On the day of settlement your Solicitor or Conveyancer will advise once settlement has gone through. The agent will require both the Buyers and Sellers Solicitors written confirmation before keys can be released.
Preparation is the key. Understand the steps of sale and having everything in place is imperative to reaching your property goals. Whether you are considering purchasing now or another in the near future and in need of advice, please feel free to contact our team with questions that you may have.