There are a few important considerations to note down before you start to scan websites looking for your perfect pad. This pre-purchase checklist will have you well on your way to picking the right pad.
Pre-Purchase Checklist:
1. Deciding where to purchase property is not a straightforward task. You need to consider your life stage and current situation i.e., are you:
- Single?
- In a relationship?
- Contemplating children?
- Coping with your commuting distance to work?
2. Other important aspects to consider include:
- Your preferences for inner city living versus parkland and the open spaces
- Your proximity to retail outlets and other services
- Your desire for closeness to family and friends
- Assessing your hobbies and interests and where they are located
3. Your interest in suburban aesthetics is also important – you may love the house you are looking at, but does the rest of the street measure up as part of the ideal location?
4. Make sure you go for a drive around the areas you’re planning to buy in. You might see a number of For Sale signs and you can use agent contact details for further search information.
5. Sign up with online real estate sites who have alert services.
6. Use real estate agents to your advantage – they can do much of the searching work for you; especially around the suburbs you’re interested in.
7. Don’t be shy in telling an agent what you’re really looking for – once you’re known to them, they will keep you at the forefront for newly listed properties which match your search criteria.
8. When you locate a property you’re interested in purchasing, remember a few key points
- If you’re dealing with a real estate agent, you must conduct all negotiations through the agent – do not contact the vendor personally to negotiate.
- If you’re purchasing at an auction, remember that the dealings are final – there can be no negotiation of contractual terms such as arranging finance or building inspections if your bid is successful. Ensure you have satisfied all your requirements from an auctioned property before you bid.
9. It is in your best interests to arrange for building and pest inspections before you unconditionally purchase a property.
10. It saves time to pre-approve your finance before you begin hunting for a property. While 100 per cent mortgages are possible, saved deposits of 5 – 10 per cent of a property’s value are normally expected.
11. Consider how you would like to structure your mortgage and exactly what type of financial product you are seeking to finance your property purchase. Think about fixed interest, variable interest or a combination of the two – as well as the term of the mortgage you are looking for. How will your loan repayments impact on the rest of your lifestyle?
12. You need to formally apply to a financial institution to pre-approve your finance; generally the more information you provide to them at the start –such as income and expenditure figures, the quicker your finance will be approved. Financial institutions will approve your finance in writing. Your finance pre-approval normally lasts for three months.
If you have done your research and gone through your pre-purchase checklist you will be in a position to make an offer on a property with less worry. When you think you have found your perfect property, made an offer and it is time to do your property inspections, call Action Property Inspections. A sample of our comprehensive report can be downloaded here.