Buying a home is likely to be the biggest investment you are ever going to make, so here are some tips to help you buy the right home at a fair market price.
Before you start inspecting properties, get a feel for the market by looking at real estate listings in and around the surrounding area that interest you.
Set a financial limit, and don't waste your time looking at properties significantly beyond it. Buying a home can be a time consuming, emotionally charged experience and there's no point looking in the wrong market sector. Furthermore, you don't want to purchase a property that you really can't afford and become overly indebted in the process.
A good home is the one that best suits your needs, so try to be clear about understanding what those needs are. Before you start looking, and certainly before you buy, work out what features you want your home to have, including number of bedrooms, bathrooms, garaging, family areas, interior space, block size, overall condition, proximity to schools, shops, transport and so on.
This way you will get a sound idea of market values. Most importantly, look at comparable properties in your chosen area that have recently sold. It's the selling price, not the asking price of properties that sets the market.
There are few things as frustrating as setting your heart on a home only to find you can't get the financing for it. Speak to your lender before you start seriously home hunting, and know how much money they will lend you. This is especially important if you intend to buy at auction, where if successful you must put down a non-refundable 10% deposit on the day.
Sometimes these are done by the vendor and are attached as an addendum to the contract of sale, but if not, and especially if the home is older, it is money well spent to have a pest and building inspection report done. This report is usually around $500.
Making enquires with the local council and roads authorities can inform you of any major works taking place in the area that could possibly affect your new property. Official searches of these and other bodies will be made by your solicitor or conveyancer, however there is no harm in doing some homework yourself before taking the plunge. Also, talk to prospective neighbours and read the local papers to see what's going on and planned for the local area.
These are all key factors in valuing a property, and will not only impact upon the price you pay, but also the price you get when one day you go to sell. As a general rule, if you can afford it, look for a well located home with the right aspect. Not only will it be more pleasant to live in, it's likely to appreciate more strongly than a poorly positioned home. Also bear in mind that from an investment point of view, it's generally better to buy the worst house in a good street than the best house in a bad street. The worst house can be upgraded and increased in value in the short term, whereas the best house may well be overcapitalised - meaning its value will increase more slowly over time.
Have a chat to our sales consultant today.