There are some simple steps that home buyers often miss when looking for their new home.
Taking the time to consider these steps can save you thousands of dollars, but more importantly, can smooth the process of buying a new home.
It's a great idea to have pre-approval for your borrowing capacity before beginning your search. This way you've set yourself a limit and can't get into trouble if you sign onto a contract subject to finance. This is something best discussed with your broker, mortgage manager or lender in order to set a realistic limit on your home buying adventures.
Underestimating all the costs that accompany such a major transaction. Additional costs may include stamp duty, building & pest inspector, mortgage insurance, solicitor fees as well as moving expenses. It all adds up and the grand total can push people past their financial comfort zone. Also, remember to factor in the ongoing costs of owning your property such as rates, insurance and maintenance. Owning can ultimately cost much more than renting.
It’s important to engage a competent and independent professional to check the structural soundness of your potential new home. Remember… these inspectors are trained to find faults, so don’t freak out when they produce a long list. Look out for major faults but don’t let minor faults that are easily repaired trouble you too much. If you’re not sure how to interpret the report, have a chat with the building inspector and ask the seriousness – or not – of the faults, you could also ask them if it is a sound property to buy.
As well as understanding your family’s finances and needs. The wise home buyer will get to know the neighborhood – remember you’re not just buying a property; you’re also buying a location. It’s important to find out about the quality of schools, the crime level, transport and possibly upcoming zoning issues. Not all parts of every suburb are ideal spots to live.
Don’t sign anything until you are sure that your interests are protected.
While the standard contract to purchase a property will give you a “5 day cooling off period” (this varies in different states) smart purchasers request additional clauses to protect their interests.
Don’t be fooled into believing that you can always ask for changes or an extension later. That’s not the way it works. The only clear cut way to get changes to a contract once it’s been signed is to end the existing contract and renegotiate a new one. The seller doesn’t have to agree to your request, and it will also cost you more in solicitors’ fees.
You’ve been looking for a few months but haven’t found your dream property or if you have, you may have been out bid by someone who had deeper pockets than you. You’re Fed Up!
One big mistake home buyers make is to buy a property in desperation. They buy something reasonable rather than something that really suits their needs because they’re sick of the emotional rollercoaster of home buying.
This is a decision you may live to regret for a long time.
Rather than buying out of frustration, stop looking for a while, or better still get an agent on your side to save you time and to find those silent sales for you – the off-market properties.
Look for a property in your budget – not above! If you don’t you are only setting yourself up for disappointment. A wise home buyer knows that there are lots of houses – and there’s one out there that’s the right house at the right price for you. If you can’t afford it, move on and keep looking.