STEP 1 – ARRANGE FINANCE
How much can you afford to pay & where will you get your financing?
Consult with a finance institution &/or mortgage broker, get more than one opinion on how much you can borrow. Stick to your limit & be realistic. Don’t stretch yourself so far that you are struggling to pay for day to day needs. Take into account the extra costs involved in buying, such as legal fees, building inspections, property valuation fees, stamp duty, mortgage insurance & moving costs. Discuss additional costs with your financial consultant.
STEP 2 – UNDERTAKE RESEARCH
What are you looking for & where do you want to live?
With your budget in place now starts the fun, (& sometimes frustration) of looking for your new home in your preferred areas.
STEP 3 – SEARCH FOR PROPERTIES
Find an agent to register your buying preferences, view websites daily, attend open homes & personal inspections.
In a fast moving market it pays to make yourselves & your buying needs known to an agent that you are happy to work with. Website alerts can also be set up for your preferences, & emailed to you on a daily basis. View a selection of properties & attend open homes to help you get an idea of values & property styles in your buying areas.
STEP 4 – MAKE AN OFFER IN WRITING
Formal offer is presented to the seller & any conditions applying are stated.
A pre-approval of finance from your bank or lending institution needs to be in place before safely proceeding with an offer to buy a property.
STEP 5 – NEGOTIATE
The seller’s agent will negotiate to get the best price.
Points other than price that may be part of the negotiation are; time until settlement, vacant possession, inclusions/exclusions.
STEP 6 – ACCEPTANCE OF OFFER BY SELLER
Written advice is prepared by the agent for the legal representatives of the seller & the buyer.
This includes all information needed for the contract of sale; Full legal names of buyers & sellers, all contact details, agreed sale price, all details of the respective legal representatives & any special conditions.
STEP 7 – CONTRACT MOVES TO UNCONDITIONAL
The buyers legal representative will check all the details of the contract.
Pest & building inspections conducted. Deposit paid. Finance finalised. Don’t be alarmed if your bank or lending institution requests a valuation by a registered property valuer. Even with pre approval the lender may still request a valuation. Contracts signed by all parties.
STEP 8 – EXCHANGE OF CONTRACTS
Signed contracts are exchanged. Both parties are now in a binding contract.
This is when the SOLD sign is put on a property. Until this time, either party can be released from the contract without penalty.
STEP 9 – FINANCIAL ARRANGEMENTS FINALISED
Transfer of monies arranged in readiness for settlement.
Your financial consultant and legal representative will liaise to make these arrangements. The financier provides the money, the solicitor arranges the disbursements.
STEP 10 – SETTLEMENT PROCESS
Ownership & funds transferred, key collection.
When all the appropriate payments have been made, the solicitors will notify the agent in writing to release the keys to the new property owners.
STEP 11 – MOVE INTO YOUR NEW PROPERTY
You have the keys to your new property, you can move straight in, redecorate first, or arrange for a new tenant, depending on your circumstances.
BUYING AT AUCTION
If you are intending to buy at auction, STEPS 5-8 take place on or before auction day. Finance, deposit, pest & building inspections & valuations must be in place. Auction day is final. If you turn up to bid and you are the highest bidder past the reserve price (on-the-market price) you are the instant owner awaiting settlement of the property.
Preparation is the key. Understanding the steps to buying property & having everything in place, is imperative in reaching your property goals. Whether you are considering buying a property, now or in the future, please feel free to contact me or any of our team if you have any questions.