Buying a property is one of the biggest (if not the biggest) investments that a person will make in their life. It can be extremelly stressful. The team at Peter Dunn Real Estate have compiled a comprehensive list so that you are in control and knowledgeable about the process.
Step 1 - Know Your Financials + Find Lender/Broker & Obtain Pre-Approval
- Compare different lenders/brokers to understand the benefits and advantages of working with each. Something as simple as a lower interest rate can save you thousands over the life of the loan.
- Speak with the agent you have in mind for step 2 (below), they may also be able to help you find someone trustworthy that they have worked with before.
- Your lender/broker will pull your credit history as part of the pre-approval process.
- Ask your lender/broker if you apply for any special loans or concessions.
- Factor in stamp duty, legal costs and reports.
- Once pre-approved, this gives you, your agent and the lender/broker an estimate of how much you can afford. It puts you in a strong position to negotiate an outcome.
- Remember that just because you are approved for a certain amount doesn't mean you have to spend that amount. Work with your lender and agent to establish a price point and monthy payment that you are comfortable with.
Step 2 - Find a Real Estate Agent
- Reach out to an experienced and well-regarded real estate agent that operates within the area you are looking to buy.
- Have a chat about your requirements/wish list. Make sure to include: Must haves, nice to haves and things to avoid.
- Bring along your pre-approval and lender/broker contact information so you can discuss budget and have your agent connect with your chosen lender/broker.
- Determine different neighbourhoods/suburbs you might want to live in.
Step 3 - Find a Home
- Keep your 'must-haves' checklist in mind.
- Keep a note of which houses you are interested in.
- Stay within your price range.
- Provide your agent with ANY feedback regarding the properties that you view.
- Both positive and negative feedback can be very helpful for an agent to find exactly what you are after.
Step 4 - Make an Offer/Exchange Contracts
- Work with your agent to get your offer accepted. The offer has to be in writing and contain any requested conditions. e.g. delayed settlement or subject to formal loan approval.
- Offer accepted. The agent will supply details to pay your deposit.
- Do your due diligence: Organise a pest and building report. A pest and building inspection should ensure there are no major issues with the home.
- The lender will order a valuation of the home to verify that the market value supports the purchase price.
- You and the seller will sign contracts, ready to exchange contracts.
- Pay the deposit to the agent.
- After you have exchanged contracts, a settlement date will be set. Your solicitor/conveyancer and lender/broker will continue to work in the background until completion. Now is a good time to organise your home insurance and notify any organisations of your change of address.
Step 5 - Final Inspaction of the Home
- Go through the property close to settlement (the morning of is usually fine) with your agent to double check everything you agreed upon in your contract is still present and functions.
- Following your final inspection, you will authorise your solicitor/conveyancer to proceed to settlement.
Step 6 - Settlement
- You will receive the keys to the property once settlement is confirmed by your solicitor/conveyancer.
- You now own your new home! Time to pop the champagne and post that sold sign photo on Instagram.