Buying your first home is a big step for anyone and this article is designed to make you think about the process, so that when you do take that first step you have already answered some of the questions that come your way.
Purchasing your first home can be a daunting step and a very emotional life experience. For you to reach the point of being able to purchase your first property you have had to sacrifice to save for your deposit. Of all the property purchases you make in your lifetime, your first home may be your most emotional and stressful.
As you have scrimped and scrounged around for the money you need for your deposit, you have incubated a dream about what your first place will hold. That dream has allowed you to withstand the suffering and sacrifice of saving. However, the dream must fade a little before entering the market.
The housing market is a new world and that world is full of mountains and valleys. Some people do well buying property, whereas some just never seem to get ahead. That dream of yours may need to fade a bit to make room for reality.
What should a first homebuyer do?
While you are saving up for your first home you should be exploring the housing market relevant to you. You only know what prices are fair by looking at them constantly and becoming accustomed to what your money can buy.
A clear example of this is when judging fuel prices. Many people recognise a fair fuel price because they are constantly seeing and recording in their mind how the prices fluctuant.
This does not mean just looking online at houses. The pictures of properties online are designed to entice you. You will soon recognise what your money can buy you when you start walking through properties.
It may take you months or years to save up for your deposit. Therefore, a couple times a month walk through an open home in your price range and desired suburbs. You will begin to understand the market you will be buying in. When you are getting closer to purchasing start-visiting properties more frequently.
How do I buy my first home?
I have broken the process of buying your first home into steps that most people follow. I will be doing further articles on each of these steps, so keep an eye out.
1. Making a decision and setting a goal
You should ask yourself, ‘what do I want from my first property?’
The answer to that question will shape what you choose and where you may look to buy.
2. Having a game plan
This is the process of figuring out a step-by-step plan to get you to that goal you have set in front of yourself. This process requires a lot of questions, for example:
· What size home is best?
· What area should we buy in?
· What kind of property will give us our anticipated return?
3. Finding finance
To get the finances you need, I suggest speaking to a reputable mortgage broker who has access to multiple financial organisations so that they can find the best deal for you.
4. What to look for and who to talk too
This is where your game plan can help you keep your course in the ocean that is property buying. Another aspect is how much you should tell a selling agent. My advice is to be clear on what you are looking for and the price range you are comfortable with. You don’t have to go into deep detail but give them enough information so that they can perform their job.
5. Negotiating for a property
Your ability to negotiate effectively comes down to your knowledge of what you want to buy. It’s normal in the real estate market to negotiate prices and you shouldn’t be afraid to put an offer in expecting to negotiate.
You are looking for a fair price for both parties. Understandably the seller wants the highest price they can get and yourself, as the buyer, wants the lowest you can get. Ultimately both parties should be willing to move for a fair price.
6. Obtaining professional help
You will need the help of some professionals to get you through to settlement.
· Buyers Agent
· Pest and building inspector (pool inspector if there is a pool)
· Insurance broker/Insurance company
These people will help you fulfill your contractual requirements when purchasing property. I strongly suggest that you organise which people you are going to use before you enter into a contract so that things will run smoothly and avoid the stress of finding these individuals after the contract is signed.
What is settlement? Settlement in regards to purchasing property is the completion of the contract, whereby money is exchanged and the property title is transferred from the seller to you as the buyer.
You will receive the keys to your new home once the selling agent has received confirmation of settlement from both your solicitor and the seller’s solicitor.
You now have your first home, but it’s just the beginning of your home ownership journey.
Please visit www.simplcitybuyers.com to see how I can help you.
Simplicity Buyers Agency