Buying a home is both exhilarating and nerve wracking. It can be a highly time consuming process, and it often comes as a relief to finally find the perfect property. But what should you expect when buying a home?
The processes may differ slightly from state to state and the method of sale, however the following guidelines can help to give you an idea on what to expect.
Before you start searching for a home, its a good idea to visit your bank or finance broker who will be able to determine what your buying power is. Having a pre-approval gives you an idea on the price range of properties you should be looking at, before you fall in love with a property outside of your reach. Finance approval can take between 14 & 21 days once you signed a contract.
Do Your Research:
You should never rush into buying a property – after all, this is probably the biggest financial decisions you’ll make. Take the time to research the area, different property types, as well as looking into associated costs such as stamp duty costs and solicitors fees so that you are prepared before buying.
It’s also a good idea to be in touch with local real estate agents and ask them to keep you updated about any new properties which are coming on the market similar to what you are looking for, and by being on their Buyers Club Email Alert you may find out about a property first. Sometimes properties will sell before being advertised on websites like domain.com.au and realestate.com.au.
Make An Offer:
Once you’ve found the right home, it’s time to try and buy the property. If you have any special conditions you should notify the agent so these can be included in the contract. Conditions can include things like, building inspection, pest inspection, finance etc. Talk to your agent about the price you are willing to pay and the settlement time. All of these terms and conditions will then be given to the owner for their response. Generally speaking, higher offers and less conditions stand the best chance at securing the property.
Once agreement has been reached you will be required to pay a holding deposit whilst the contracts are drawn up. When you sign your contract the deposit is payable. Deposit amounts may vary depending upon what has been agreed when your offer was accepted. It is generally a 10% deposit. Talk to your agent about this.
A building and Pest Inspection can be done to give you piece of mind that the property you wish to purchase has no nasty surprises at a later date. Building and pest inspections can provide you with peace of mind with the knowledge that your home is free from any serious structural flaws or termites.
When all the conditions in a contract have been satisfied, eg building & pest inspections and finance, the contract moves to the unconditional stage and you need to start packing to get ready to move.
Pre Settlement Inspection:
A few days prior to settlement, it is a really good idea to go back to the home to ensure that no damage has occurred since you purchased the property. You can also take this time to measure the fridge space and rooms for any furniture purchases you may wish to make.
Settlement generally occurs 30/60 or 90 days after agreement is reached. Your Solicitor/Conveyancer will let you know when settlement is booked a few days prior to the date. It’s important to understand that delays can often occur between solicitors and banks and settlement maybe delayed. Once you have been notified of settlement, you will be able to pick up your keys and move into your new home. This is such an exciting time for you.