Choosing the right home for you comes down to knowing what you need; what you can afford and knowing exactly what's available at the time you are ready to buy.
Knowing what you need Although it seems obvious, the type of home you buy should reflect the lifestyle you are planning for the future. Think about such aspects as household numbers, proximity to local amenities, including schools, the sorts of work and leisure activities you like and the length of time you expect to live in the home.
Knowing what you can afford Speak with your bank manager or consult a mortgage broker to pre-determine your budget level and perhaps obtain pre-approval from the lending institution prior to going out 'to buy'. This puts you in a position where you are able to make 'a cash offer'.
Knowing what is available Newspapers, real estate publications, real estate offices and the internet are all good places to begin your search. Most web sites are updated daily featuring the very latest listings and you can request to receive automatic notification of properties that may suit your needs.
Knowing local values Research sales in the areas you are looking at and maybe attend any auctions of properties to help establish current values. I can help you with sales statistics.
You've found your perfect property There are generally two methods of purchase. Unconditional and Conditional. If you are purchasing ‘sight unseen’ then it is crucial that you have trust in your salesperson or obtain the necessary independent information that satisfies your needs. An unconditional agreement means exactly that. You are making an offer with no clauses and if accepted by the vendor then you have purchased the property. Should you make an offer with conditions then there are several conditions that you may need to consider including finance approval, building inspection report, LIM report or sale of another property.
Multiple Offer Situations This arises when 2 or more purchasers express interest in submitting an offer on the same property. In the event of this happening you will be encouraged to submit your very best offer both in terms of purchase price and any conditions.
Concluding a Sale Once your offer has been written and negotiations are finalised, you will sign a Sale & Purchase Agreement and pay a deposit; usually 10% of the sale price. Copies of the contract will be sent to your solicitor and yourself. (If the property you wish to purchase is going to be auctioned, please refer to my guidelines on 'Buying at Auction').
Settlement Day This is when ownership of the property is transferred to you and financial transactions are completed. Prior to settlement day you may request a pre-settlement inspection of the property to ensure nothing has changed in its status since purchase and agreed chattels are in place. Once all settlement procedures have been finalised the keys will be released to you.
In Summary There is no doubt an unconditional cash offer is more appealing and acceptable to sellers and in a multiple offer situation a cash offer will make your agreement strong therefore enhancing your chances of securing the property.
If you find a property that appeals to you then you will find it easier, and providing time allows, obtaining confirmation of your conditions prior to making an offer and once satisfied make your offer unconditional.
This cannot always be possible as others may also be interested in purchasing the same property and you may not have the time to obtain the above information. In this case you may find yourself in a position where multiple offers are to be presented to the vendor.
In the above situation you will need to decide whether you make a conditional offer and if so then include any conditions that you deem necessary.
Remember, if you end up offering under a competitive situation (multiple offer) where two or more purchasers are offering on the same property then the vendor is more likely to look closely at an agreement that is clean or has the least amount of clauses contained within the agreement. If in doubt always make your offer conditional.
Have you arranged your finance?
You don’t need to wait until you’ve found a property before you arrange finance. It’s a good idea to find out first just how much you can borrow – that way you know what price bracket to start looking in and what level of repayments you’re comfortable with.
The problem that most people face today, however, is “which home loan is the right one for me?” There are so many options when it comes to banks, products, rates, terms and fees. With the purchase of such a large investment, you need to be confident that you have made the right financial choice.
Mortgage Express is a team of banking and financial specialists who can give you expert advice, at a place and time convenient to you - and at no cost. Their team of consultants represent a range of banks, building societies and non-bank lenders. Their advice is unbiased so can focus on your needs.
Mortgage Express eliminates the need for any bank interviews. Once you have seen them, you immediately have the choice of many lenders and they will often get better terms than the bank will offer you direct. They also can arrange funds for your deposit once your offer is accepted.
The advice is free and there is no obligation. Talk to me and I will put you in touch with a Mortgage Express representative.