You’ve found your Dream Home!
All the inspections have been done – building, pest, and everything else. You’re ready to make an offer, and while it’s a bit nerve-wracking, it’s also an exciting time! To make things smoother, it helps to understand the buying process. Knowing each step can give you more confidence and improve your bargaining power.
Let’s rewind and break it all down from the start.
Line Everything Up
Buying a property doesn’t just start when you head to an open inspection. It would help if you were organised beforehand so that when you find “the one,” you can act quickly. This is especially important in a competitive market.
Get Pre-Approval
Before you even start looking at homes, it’s essential to understand your finances. There’s no point checking out properties that are out of your budget.
Be realistic about what you can borrow and, more importantly, what you can afford to pay back comfortably. Chat with a mortgage broker or a few banks to see who offers the best rate and get pre-approval on a home loan. If a lender provides more than you should spend, stick to what works for your lifestyle.
Pre-approval puts you in a stronger position when making an offer—it shows the vendor you’re serious and ready to buy. If you’re a first-time home buyer, don’t forget to check if you’re eligible for government incentives!
Consider Consulting a Lawyer
While not essential, having a conveyancing lawyer can help you navigate the legal stuff, ensuring your rights are protected, and any potential issues are spotted early. A lawyer can also help you add clauses or conditions to the contract that work in your favour.
Know Your Conditions
Offers are usually made either conditionally or unconditionally.
Unconditional: You’re agreeing to buy the property in its current state, regardless of your finances or any issues with the home. This is common in auctions.
Conditional: Your offer depends on certain things, like finance approval, inspections, or repairs are done before settlement.
Get the Inspections Done
Ensure you get all the necessary inspections sorted—pest, building, and anything else relevant. You’ll also want to check the contract to highlight any building issues or upcoming costs.
Review the Contract of Sale
Before making an offer, carefully review the contract of sale. This includes important details like the deposit, settlement date, and inclusions. Conditions may not suit your needs, so review everything carefully.
Key Questions to Ask
Here are a few things to ask the vendor before making an offer:
- What’s the asking price, and why? Knowing why the vendor sets the price can help your negotiations.
- Have there been any other offers? This gives you an idea of the competition.
- How long has the property been on the market? The longer it’s been listed, the more negotiating power you might have.
- Why is the vendor selling? A motivated seller might accept a lower offer.
Has the asking price changed? If it has dropped, it could reflect the market’s movement or a lack of interest from other buyers.
Making an Offer
Once you’ve researched and know what you’re willing to pay, it’s time to start negotiations.
- Set your limits: Be clear on how high you’re willing to go, and remember to factor in other costs like legal fees, moving expenses, and any renovation costs.
- Don’t offer too low: An unrealistic offer could offend the vendor and make negotiations more difficult.
- Research the market: Compare recent sales to see how the property stacks up.
- Stick to your budget: Don’t get caught up in the excitement and overextend yourself financially.
- Consider early offers: Making a pre-auction offer can sometimes get you ahead of the competition.
Remember, your first offer is unlikely to be accepted, so be prepared for some back-and-forth. Put your offers in writing and clearly state any conditions.
Key Takeaways
- Ensure you’ve got your finances sorted, inspections done, and legal advice, if needed, before making an offer.
- Ask key questions about the property, the vendor, and the price.
- Know your financial limits and stick to them.
- Stay calm, and don’t let emotions lead your decisions.
Ask the Experts
Buying or selling a property doesn’t have to be stressful. With some research, planning, and the right advice, the process can be exciting as you move closer to owning your dream home.
When in doubt, speak to the experts. At Samantha Wilson Property, we’ve got the experience and local knowledge to guide you every step of the way. We are here to make the buying or selling process as smooth as possible.
If you are thinking about selling or buying and require “One-on-One Professional Service,” please call me at 0418 838 676.
