PLAN AND ORGANISE YOUR DEPOSIT
Set a goal and save for your deposit. While most lenders require a deposit of at least 5% of the property’s value, bigger is definitely better.
A larger deposit may help you to avoid costly Lenders Mortgage Insurance, which is charged when a home buyer borrows more than 80% of the property’s value. Putting a savings strategy in place early on in your financial lifecycle will make it easier to obtain finance and purchase your dream home down the track.
GET YOUR PRE-APPROVAL
When it comes to negotiation, property sellers are often attracted to buyers who have pre-approved finance over those who don’t. Loan pre-approval lets you head into the purchase process knowing the maximum amount you have to spend on the property, giving you the confidence to buy at auction or negotiate on price. It also saves you from looking at places that aren’t in your price range.
KNOW YOUR UPFRONT COST
Will you have to pay lenders mortgage insurance? Depending on where you live, there may be stamp duty, plus moving costs and legal fees (such as conveyancing fees). You may also be eligible for a first home buyer grant, which can help offset these.
KNOW YOUR NEEDS
Write down a list of features that the property must have, including the number of bedrooms and bathrooms you require, whether you need a covered garage for your vintage car, or perhaps a generous backyard for your Golden Retriever.
Once you know exactly what you’re looking for, you can narrow down the list of homes you wish to inspect. Don’t visit properties that don’t meet most of your requirements – unless you’re willing to spend big on renovations.
VISIT OPEN HOMES AND AUCTIONS
You’ve decided where you want to live, now you need to understand the real estate market in that area. Keep track of what properties are selling for – particularly homes that meet your essential features list and budget. Sign up to YOUR EXPERT Property Alert and you will be emailed details of properties that match your requirements when they are put on the market. If you like, you can also receive auction results and sold property results – it’s a great way to understand how the property market is performing in your area.
CONSIDER SURROUNDING SUBURBS
If your target suburb is out of a budget, consider more affordable neighbouring suburbs. Reading local publications and connecting with local websites, bloggers or personalities can also give you helpful insight. If you’re attracted to an area because of its rising value, remember that may spill over into next door suburbs.
SHOP WITH AN OPEN MIND
More times than they can count, agents say that buyers will start a search looking for that perfect craftsman bungalow only to find that the features and amenities they crave are in a sprawling mid-century ranch house.
Be open to suggestions from your real estate agent who might show you something you didn’t know you would love.
LEGAL DOCUMENTATION
When you find the perfect property, you should request a copy of Section 32 (Vendor Statement) from the listing agent to make sure you are happy with any easements or covenants and also to see what the council rates are for the property and other important details.
The Contract of Sale or Contract Note is another important document as this lists any conditions the seller may have such as settlement dates etc. You should consult with your solicitor or qualified conveyancer to get advice on the Contract of Sale and Section 32 Statement before purchasing the property.
MAKING AN OFFER
For properties being sold by Private Sale, Sale by SET DATE® or by Negotiation, you will need to make an offer if you want to buy the property. For properties being sold by Auction, you can make an offer before the Auction if the sellers have instructed their agent that they are happy to consider prior offers, but the offer would have to be accepted by the seller/s for the property to be sold before auction and they still may decide to take the property to the scheduled Auction day, even after considering prior offers.
Everyone wants to pay the lowest price possible – but offering a lower price and being prepared to negotiate upwards does hold the risk that if the seller has several offers, they may decide to accept a higher offer without giving other parties the opportunity to offer more. The real estate agent is under no obligation to go back to you for a higher offer if the seller has agreed to accept another offer. Talk to the YOUR EXPERT listing agent about property values of similar homes in the area, this may help you make an offer that is more likely to be accepted.
A seller may reject an offer for reasons other than the price – including the conditions placed on the offer. For example, a seller might reject an offer conditional on a longer settlement period, if another potential buyer offers a similar sale amount but can settle sooner, or the seller may accept the offer where the finance is not conditional.
You can engage a buyer’s advocate or other professional to negotiate for you. You can expect to be charged a fee for this service.
FINAL INSPECTION
Purchasers are entitled to inspect the property in the days before settlement; this is to ensure the property is in the same condition as when it was purchased and that all inclusions are available as per the Contract (e.g. dishwasher).
Pre-settlement inspections should be organised through the listing agent.
SETTLEMENT
Your legal representative will instruct you on the procedures for Settlement. This is an official process usually conducted between legal and financial representatives of the buyer and seller.
Once the Settlement has taken place the seller’s legal representative will send written confirmation to the listing agent to confirm the Settlement has been finalised. Please note that keys cannot be released until the listing agent has received written confirmation of settlement from the seller’s legal representative.
We strongly recommend you contact the office before dropping in to collect the keys, to ensure that settlement has not been delayed and that they have received confirmation of the settlement.
WE ARE HERE TO HELP
If this all sounds very daunting, don’t worry, YOUR EXPERT agent will help you through the process.