Understanding the Buying Process
If you’re entering the property game with a view of buying a house, it’s worth getting a grasp of the process involved.
Wrapping your head around the buying process takes some thought, but once you understand it you’ll be a lot more confident when it comes to securing the perfect home.
There are different methods available when buying, depending on whether the seller chooses to go down the road of a private sale or an auction.
Sort Your Finances
In order to be perceived as a serious buyer and make an offer on a property, you’ll need to obtain loan pre-approval.
There are multiple lenders who offer loan pre-approval, so be sure to shop around before you settle on a loan. You’ll want something with a low interest rate, but you might consider other features such as an offset account or line of credit.
You’ll need to have a substantial deposit in order to take out a loan. The Australian Securities and Investments Commissions recommends saving at least 20 per cent of the purchase price, plus enough to cover one-off costs, such as stamp duty.
Browse and Inspect
Whether you’re an existing homeowner looking to shift to a nearby suburb or a renter that wants a change of scene and the taste of home ownership, you’ll need to have a look around suburbs you’re interested in and work out the going rate of particular properties in the area.
Open inspections are a good way to see a property in more detail if you’ve singled it out as a favourable option.
However, you’ll need to do more than this if you’re serious about buying. It’s important to obtain a pre-purchase property inspection report before you buy.
This might be referred to as a building inspection or a standard property report. It outlines any issues with the property as well as commenting on its general condition.
For instance, if there are issues with dampness, wall cracking or other building defects, these will be highlighted. It’s also advisable to obtain a pest inspection report, too.
While some problems might make the purchase of a particular property a no-go, other issues will be less problematic and may allow you to negotiate the price down.
Making an Offer
You might make an offer on a private sale and hope that your bid is accepted by the buyer. You can make a conditional or an unconditional offer.
A conditional offer is a wise move if you’re selling your existing property, or want to check the structural integrity of the property before you buy it.
When it comes to the paperwork involved, it’s wise to engage a conveyance or solicitor to ensure everything is watertight.