Buyers
UNDERSTANDING THE PROCESS OF BUYING A HOME
When you buy a home, you are buying much more than four walls and a roof over your head. You are buying a lifestyle for you or your family.
Given the significance of this decision, it is often an emotionally charged process with hundreds of questions, both big and small.
Having helped thousands of people buy properties, we wanted to share our insights, to walk you through how to buy a house or a unit.
WHAT ARE THE STEPS TO BUYING A PROPERTY?
01
Understand how much you can borrow
02
Research the property market
03
Thoroughly inspect the property
04
memo of sale produced
05
Mortgage Valuation, Building Survey
06
Mortgage offer, searches back and enquiries dealt with
07
Sign contracts and pay the deposit
08
exchange of contracts
09
Property completes
UNDERSTANDING THE PROCESS OF BUYING A PROPERTY
Once you have made the decision to buy a new home, knowing how to research the market and what to look for in a neighbourhood are key.
Before you even start looking around at properties to buy, it is a good idea to find out how much you can afford to borrow and, even better, get pre-approval for a mortgage
Employment history or continuous income
Your deposit – 10% to 20% is ideal
Your monthly expenses
Your credit history
Any debts you may have
Your assets
Any other loans you may have
WHAT MAKES A GREAT LOCATION WHEN BUYING A PROPERTY?
Location is a home buyer’s most important consideration. You can always renovate or improve a home, but you cannot change its location. The location also directly influences the capital growth of the property. If you buy in an area primed for growth it can help build your personal wealth faster.
But what actually makes a great location? In essence, a great location is one that allows you to live the lifestyle you want for you and your family. It is the mix of physical location, the character of the suburb and its proximity to desirable amenities.
AREA FEATURES TO LOOK FOR WHEN BUYING A HOME
“Sometimes customers get fixated on a particular street or area or type of property and this narrow focus means they can overlook some great opportunities. After all you can probably create your desired lifestyle in a number of locations.”
Location is a home buyer’s most important consideration. You can always renovate or improve a home, but you cannot change its location. Capital growth is also directly influenced by location.
Here is a look at some key ways you can assess an area or locality
Proximity to amenities such as schools and parks
How long will it take to get to work?
Does the area have a low crime rate?
Are the homes in the area well maintained?
Does it have good walkability to services?
Are there any planned upgrades or planning applications?
Does it have historic charm?
How might development plans affect lifestyle and property price?
What are the aspect, views and outlook like?
Keeping an open mind as to where you want to live can help you find your property sooner.
HOW TO FIND THE RIGHT PROPERTY AND SUCCESSFULLY BUY IT
Finding and buying a property is easier when you know where to look, what questions to ask and how to do your due diligence.
Here we take a deep dive into the different ways to buy a house or unit and how to successfully navigate the settlement process.
HOUSE HUNTING
If you are committed to finding a great home at the right price in the right location, it takes time.
Going to open houses, talking to the agents, walking around neighbourhoods and going to live or online auctions all give you good insights that cannot be garnered from a computer.
Not only does this help give you clarity about what is available, what you like and dislike, it also ensures your knowledge of local markets is deepened.
You will develop great instincts for how much a property should sell for, which will ensure you pay the price that is in line with local market conditions.
As you head out to inspect properties:
Have a positive attitude – after all it is exciting
Write down a property wish list
Choose your preferred area
Make sure you can afford a home in your chosen areas
Attend as many viewings as you can to fully gauge the market
Do not forget to read community group forums on social media. Facebook and next door sites are very good to get local information
QUESTIONS TO ASK THE SALES AGENT
Here are 10 questions to get you started:
Why are they selling the property?
Have the owners done any renovations recently?
Can you please provide a list of comparable sales from the last 3 months?
How much are the council rates?
Are there any restrictions on the property?
Are they aware of any planned changes?
How long has the property been on the market?
Have they received any offers and if so, how much?
Are the vendors willing to negotiate?
Are they open to pre-auction offers or do they want to go to full auction marketing?
Whilst no property is perfect, knowing if there are any serious issues with the property can help you make smarter buying decisions.
WHAT ARE THE DIFFERENT WAYS TO BUY A HOME?
BUYING A PROPERTY
An auction is a public sale by a auctioneer where the property is sold to the highest bidder. The vendor will set a reserve price in consultation with their agent. This is the lowest amount they are prepared to accept for the property.
If the bidding does not reach the reserve, the property can be sold by negotiating with the highest bidder in an effort achieve a price both parties are happy with.
There are a number of key advantages of buying at an auction which include:
The price is benchmarked with other buyers in public
You get an immediate result as there is no cooling off period
The highest bidder is the buyer, subject to any reserve price
The property completes in 56 days with a very low fall through rate
BUYING A HOUSE BY PRIVATE TREATY / PRIVATE SALE
This is the most common way of buying a home in the UK
The home is for sale with a set price; however, the final selling price is normally different to the asking price. After a period of negotiation where offers pass back and forth between the seller and the buyer, they will come to a mutually agreeable price and the property will be sold.
What are the advantages of buying a property by private treaty?
Greater flexibility for negotiation. A contract can be signed subject to certain conditions being met, such as a building survey, finance approval, repairs to the property etc
You may have more time to make a decision, therefore there is less emotion than an auction
There is more certainty regarding the price than at auction
Our aim is to offer our buyers a truly special home buying experience whilst they choose their next home, whether it’s for them to live in permanently, or to use as their own home-from-home.
Whatever it is that has motivated you to explore opening the doors of your home to a potential buyer, we’re glad that you’re considering us in your plans.
If you are already marketing your home – either independently or with another agency – it’s worth finding out how we might be able to make your home sale work better for you.
please contact us on contactus@fwestateagents.com
