- Access your financial situation: Find out how much you can afford to spend on a home by assessing your income, savings, and existing debts. Consider getting a home loan pre-approval from a broker to understand your borrowing capacity. Aim to buy the house before the pre-approval expires. If the pre-approval expires for any reason, use the same broker to get another since changes doesn’t look good on your credit file.
- Research the market: Explore the real estate market in the areas where you’re interested in buying. Look at property prices, neighbourhood amenities, schools, and crime rates to find the best possible option according to your preferences and requirements. Find out who your neighbours area, any government housing? Research what’s available in the neighbouring suburbs too. Hiring a buyer’s agent at this stage would be an added advantage since sometimes good properties sell, even before they hit the market.
- Identify your priorities: Narrow down the location. Make a list of essential features you need in a home. What are your requirements? How many bedrooms you need? Are there essential services you need nearby? Use different options to narrow down your search. Stick to the budget.
- Understand the costs: Consider additional expenses beyond the purchase price, such as stamp duty, legal fees, buyer’s agent fees, building and pest inspection costs, building and content insurance, utilities, repairs and maintenance, and potential renovations. Factor these costs into your budget to ensure you can easily afford the purchase.
- Get professional help: Consider hiring a buyer’s agent to guide you through the buying process. They can help you find suitable properties according to your preference, negotiate offers, and handle paperwork.
- Inspect properties: Before making an offer, thoroughly inspect any homes you’re interested in. Look for structural issues, water damage, and signs of neglect that could indicate potential problems. Never bid in an auction without doing a building and pest inspection. Beware no cooling off period after an auction. Do not go on impulse bidding, know the value of the property.
- Make an offer: Once you’ve found the right property obtain the vendors statement and have it checked by the conveyancer or solicitor, if everything is satisfactory, collaborate with your buyer’s agent to make a competitive offer based on comparable sales and market conditions. Be prepared to negotiate with the seller to reach a mutually acceptable price and terms. Make sure to tick or include clauses like subject to building and pest inspections and subject to finance, vacant possession clause on the contract.
- Arrange finance, building and pest inspections: Once the offer is accepted arrange finance and building and pest inspections, if all goes according to plan pay the deposit by the due date as agreed. Supply all the documents required by the lender on time to expedite the process. Get an extension if required. Arrange insurance for the property when loan is unconditional. Finalize the mortgage financing and ensure you have the necessary funds for the settlement.
- Closing the deal: complete the necessary paperwork and final inspections before the closing date. Sign all necessary documents on time and wait for the settlement. Congratulations now you officially own the property.
Please note these process could be slightly different in some states. Eg: Making the offer
