Before you start looking for a property, find out important details like your credit score and how much house you can afford. To buy a house, you don’t have to be a real estate mogul, but you do need to know a few important things about yourself and the procedure. Before buying a home, consider the following information.Even the most seasoned among us may find it difficult to navigate the real estate market, whether it’s your first time buying a home or not. The top five things to know before starting the game are listed below.
1. Be Honest About Your Financial Situation
Despite your excitement, this is the first action you must take before viewing. Rent payments have a smaller influence on your budget than home loan repayments and other associated charges, so take this into account.
While it may be tempting to borrow the maximum amount permitted when taking out a home loan, consider the payback amount and if it fits into your budget. Think about the largest monthly repayment you would be willing to make. To estimate repayments, use our repayments calculator.
The major expense at this point is your house deposit, which, regardless of how much you can borrow, will be at least 10% of the property’s value.
If you’re prepared to purchase a property, it’s critical to understand how much money the bank will loan you so that you can settle into your own residence. Before making an offer or participating in an auction, speak with one of our home financing consultants and submit an application for pre-approval to determine your borrowing capacity.
2. Keep In Mind The Hidden Costs
Make careful to research and factor in these frequently neglected expenses before you even sign on the dotted line:
- Government fees
- Tax credit lenders Mortgage Insurance
- Supplementary insurances
- Loan charges
- Pest and building inspections
3. Conduct More Research
If you put in enough effort, you’ll be much less likely to compromise on (or overpay for) something. Here are a few useful hints:
- Consider the places you’d like to call home.
- Visit real estate websites to look for recent selling prices and suburb profiles.
- To learn more about the current state of the market, speak with nearby agents.
- Look at what’s hot in the suburbs nearby (and for how much).
- Use our property profile reports to view comparable homes’ sales prices as well as their history of sales and rentals.
In addition to what is important to you, you should consider what could increase the property’s worth if you decide to sell it in the future. Items like:
- District zoning
- Plans for new buildings
- Transportation choices
- Availability of facilities
- its surroundings.
4. Consider Remodeling
If you currently own a property, remodeling it could spare you the trouble of shopping for a new place and the expense of paying stamp duty, legal fees, and real estate agent charges.
Of course, remodeling has costs and drawbacks, such as having to find a different place to live while the work is being done or going over budget and schedule. You may already have concluded that purchasing is the best course of action. And if that’s the case, be sure to speak with one of our knowledgeable home loan consultants to learn about the costs associated with both selling and buying.
5. Pursue A Deal On Your Terms
The last thing you want to do is make an impulsive purchase just because you feel under pressure because this is probably going to be the greatest financial choice of your life.
- You can always leave the room. It’s fine to do this even if you have a set price ceiling in mind. The fact is that there will be other properties available.
- Watch your emotions. Real estate brokers act in the best interests of the seller and will seize upon any sentimental ties you may have to the property in order to close a deal.
- Even after you’ve signed a purchase agreement, you still have three full business days to reconsider your decision and cancel the transaction if necessary.
And now, some advice to bear in mind when you’re prepared to bargain
- Keep supply and demand in mind. You might be in a position of power (one of only a few potential buyers) and could offer below the asking price if you’ve seen little interest in the property, there are many identical homes for sale, or the real estate agent is being pushy.
- Follow the market rather than the asking price. Don’t use this as a starting point if comparable homes in the market have been selling for less than the asking price.
- There are other bargaining options than price. You can also haggle over the terms of the settlement, particularly if you need to move into the house right away. If a seller isn’t ready to move out just yet, you can also entice them with a leaseback or even consider negotiating repairs and purchasing furniture for the home.
- A sale must be made by the agent. It is worthwhile dealing with them as well, even though they are representing the seller because they frequently need to close a deal in order to be paid.