At Professionals, we never forget how exciting it is to buy a home. You’re making plans for the future, choosing a home in an area that appeals to you, and investing in one of the safest methods for acquiring wealth.
At the same time, the event can be a daunting experience if you don’t have sound knowledge and understanding of everything that’s involved.
What you need to know about buying a house
Finance
Very few people can afford to buy a home without having to borrow money. What’s more, there’s no point seriously looking for a new home until you know how much you can borrow. It is important to remember that the price you pay for you new home is not the only cost involved. Some of the additional little extras you need to take into consideration are legal fees, building reports, stamp duty (if applicable), mortgage insurance, moving costs, property valuation and insurance.
You will need to make a home loan application. Your application will be assessed on the strength of your application and your ability to meet your home loan commitments, both now and in the future. There will be a lot of questions to answer and it is important to ensure that you gather all the information needed to give yourself the best chance of being approved.
Buy or Sell First?
The idea of selling your home before buying a new one is a very daunting concept, but selling your home before buying a new one will mean you will have your financial arrangements already taken care of so that you are in a stronger position to negotiate on the price of your new home.
Understand The Market
An understanding of the current market will give you an indication of what sort of properties are being sold at the moment, how quickly and for how much. There are three main markets, each with its own set of characteristics.
- Buyers Market – The number of properties on the market are greater than the number of buyers. You will find that properties are taking longer to sell, prices are stable and the buyers often dictate the selling price.
- Sellers Market – The number of buyers exceeds the number of properties available for sale. You will find that properties sell faster, prices generally rise, sellers may receive multiple offers and can receive a price close to or over the asking price.
- Balanced Market – The number of properties for sale is equal to the number of buyers. You will find that properties sell within a reasonable time, prices are stable.
Starting Your Property Search
The most practical first step to take before you start looking at different houses is to make a list of everything you want in a new home, to ask yourself a few questions and to prioritise your list into ‘needs’ and ‘wants‘
- Do you plan to start a family?
- Do you have pets?
- Do you like to entertain?
- Do you want a pool?
- Proximity to amenities like schools and shops
- Number of bedrooms you need
Once you know what you are looking for, make sure you do your homework. There are thousands of properties for sale properties for sale every week, so you can take your time to inspect a reasonable number of homes. If you have a particular area you are interested in you may find a Suburb Statistic Report useful. These reports are filled with useful statistics including the amount of properties sold, suburb growth, population, school zones plus much more and is a useful tool when looking to buy. If you would like your free Suburb Statistic Report today simply email us and we can send one out a current report for your suburb of choice.
Choose A Property That Is Right For You
When it comes time to look for your new home you will have to decide whether you would prefer an established property, a strata property or buy a block of land and build a new home. There are many factors to consider and benefits for all options in which you need to take into account.
Making And Negotiating An Offer
Once you have found the property in which you would like to buy, a normal part of the process is negotiation between the buyer and the seller through the Sales Consultant. In your initial offer to purchase a property you will generally submit your offer, through the Sales Consultant, in writing on a prescribed form. You should list any details of any conditions to be put upon the sale, including specific time within which to organise finance, a settlement date, a building inspection report and anything else that may be necessary to the sale. A deposit is usually paid upon signing the legal contract of sale, the conditions and timeframe for this is dependant to the offer.
Once the seller has accepted your offer to purchase the property the Sales Consultant will be in contact with you to advise of the good news. It is important at this stage to make note of due dates for all conditions noted on the Offer and Acceptance Contract and ensure that they are met. When all these conditions have been met your offer becomes unconditional and will proceed to settlement.
Many people do not realise that they may choose their own Settlement Agent, we are happy to advise a list of our recommended Settlement Agents and prepare quotes on your behalf, however it is important to note that this choice is yours and one in which you should feel comfortable with.
It is a normal condition to have a final inspection of the property at least a week prior to settlement proceeding to ensure that it is in the same condition as when the offer is accepted. Your Sales Consultant will be in contact with you to arrange a time and date suitable to both parties.
Once your offer has been accepted and all conditions have met and you have completed your final inspection of the property your nominated Settlement Agent will administer the settlement which includes exchange of titles and transferring of funds. Once final payments made and settlement has occurred the keys of your new home are handed over.
At Professionals Cannington we want to ensure that buying property be it your first home, investment property or an upgrade of your current home is as stress-free as possible and that you are informed along the way. We are always happy to assist you when we can, you can contact our office and speak to one of our Sales Consultant directly. Alternative our Live Property Chat Service is a 24/7 online chat forum where you can speak to and ask a qualified and experienced sales consultant any questions you may have about buying property.
Our Professionals Pathway to Buying booklets are another great tool available to you to assist you in understanding the steps involved in buying a home, including; organising your finances, understanding the market, finding an experienced Real Estate Agent, making and negotiating an offer and settlement.
Contact us today for your free copy or download your free copy today.
BUYING WITH PROFESSIONALS
A home is one of the biggest financial and emotional investments you will ever make.
You are making plans for the future, choosing an area that feels like home, and investing in one of the safest methods for acquiring wealth.
There are many things to consider from understanding the real estate market in the area you are interested in, the search process, inspecting properties, finding the right property, making offers, bidding at auction, securing finance and finally settlement.
There are also different considerations when buying existing or new homes, units, strata, land, rural, business or commercial properties.
If you don’t have the right knowledge and advice, purchasing a property can quickly become a daunting experience.
Sound like a lot of work?
Our superpower is working together, and since 1976 Professionals Real Estate has established a thriving PROgressive property group, with more than 225 offices across Australasia and a network of thousands of passionate people.
We believe that the most valuable PROperty in real estate, is people. We are honoured to be announced the Gold Winner: Real Estate of the Readers Digest Quality Service Awards.
All our offices provide a deep knowledge of the local market, and being locals themselves, are fully committed to the community they serve. For anyone considering a purchase, we want to earn the right to be your first choice when it comes to property, now and into the future.
We are here to make you feel comfortable, understand your needs, work with your best interests at heart, assist you in making smart decisions, lead negotiations on your behalf and provide stability throughout the entire home buying process.
And most of all, we want you to be happy with your purchase. Your new home.
For anything you need during your property buying journey, your nearest Professionals office is waiting to hear from you. We’re ready to help. Find your local office today.