Buying a home is always exciting and here at Professionals Nowra, we never forget that. You’re planning for the future, choosing a home that appeals to you, finding a location that suits your needs and investing in one of the safest methods for acquiring wealth. You’re also most likely making the biggest purchase you’ll ever make in your life, so it’s important to do your research.
To help you understand the process of buying a home, we’ve compiled some helpful tips on what’s involved and what you should expect.
So Many Choices
You wouldn’t search for a new car without knowing what you wanted. So it’s fair to say the same applies when you’re looking to buy a home. One of the first things you should consider is what you want, remembering to include any plans for the future. Some considerations may be:
- Price range
- Locations
- Type of property (eg town house, apartment, house, acreage)
- Property size
- Number of bedrooms
- Garage and storage
- Are you planning a family?
- Do you like to entertain or want a swimming pool?
- Do you intend to have pets?
- Proximity to amenities such as schools, shops, public transport etc
While it’s beneficial to have a strong idea of what you’re after, you need to be flexible. If you’re too particular, it may be challenging to find the right home for you. Prioritise your list into needs and wants, and make sure you do your homework. To broaden your search, drive through an area and surrounding suburbs, refer to newspapers, weekend papers and internet to draw up a shortlist of properties that best meet your expectations on price, location and features.
Explore the Area
If there’s an area you’re interested in, take the time to inspect a few homes to give yourself a better understanding of the market value for the properties and area you’re looking at. It’s also worth checking what conveniences are close by, and how far it’ll take you to get to work.
Here at Professionals Nowra, we’re a local family owned business. With real estate in Bangalee, Bomaderry, Camberwarra, Greenwell Point, Meroo Meadow, North Nowra, Nowra, Nowra Hill, South Nowra and Worrigee, we offer insightful knowledge of the local area, ensuring you make the best possible decision when buying your property. For more information on the area, why not view our suburb profiles.
Understanding the market
The property market is continually fluctuating, so it’s helpful to know what sort of market is prevailing when you’re looking to buy. Knowing this information will give you an indication of what sort of properties are being sold, how quickly and for how much. If you’re unsure of what the current market is, talk to one of our experienced Sales Agents, who’ll be happy to help.
Buyer’s Market
As the name suggests, a Buyer’s Market works in favour of the buyer. There is generally a greater number of properties on the market than there are buyers, meaning more choice for buyers. Because of this imbalance, properties will generally take longer to sell. Prices are stable or sometimes fall, and buyers will often dictate the selling price.
Seller’s Market
A Seller’s Market is the opposite. Generally the number of buyers will exceed the number of properties available for sale. Properties sell faster and prices will rise. It is also common for the seller to receive more than one offer for purchase, with prices closer to or over the listed price.
Balanced Market
A Balanced Market is when the number of properties for sale is roughly equal to the number of buyers. Sellers will consider reasonable offers and prices are generally stable. A good number of prospective buyers will view the property and it will sell within a reasonable time frame.
Seasonal factors are also important to consider when looking to buy or sell. The winter months will generally see fewer properties for sale, while traditionally spring is the time of year when more people tend to list their property for sale. In saying this, personal circumstances are one of the most important factors, and homes are bought and sold throughout the year, so don’t let the season stop you from looking.
How to organise your finances
When buying a home there are a number of various costs involved in addition to the price of the property you’d like to buy, so it’s important to be aware of these prior to your search. What’s more, there’s no point looking seriously until you determine just how much you can afford to borrow. Once you know how much you have to spend, stick to your limit and always be realistic. There’s no point having a beautiful home if you can’t afford to eat.
Some additional costs you should consideration when buying:
- Legal fees
- Building and pest reports
- Stamp duty if applicable
- Mortgage costs
- Property valuation and insurance
- Moving costs
Home loans
Most people will need to borrow money to purchase their homes. You could go directly to a financial institute such as a bank or building society. They will most likely provide you with one of their home loan options. For some people this may not necessarily be the best option. Given the number of home loan products on the market it may be worth talking with a mortgage broker who is registered with the Mortgage and Finance Association of Australia. They are independent, and specialise in finding the most appropriate home loan for you.
Professional inspections
It’s important to consider having an expert inspect the property you’re interested in buying to check for any problems. In the case of an auction, all inspections must be arranged prior to the auction day. Sometimes inspections are organised after you’ve made an offer, with conditional approval based on the results of the inspection. At Professionals Clyde Poulton Real Estate we recommend having an expert thoroughly check the property you’re interested in. Although the cost might seem a lot, the inspection may find potential problems or faults that could be expensive to fix later down the track.
Some points you should consider:
- Building Inspection: This is done by a licensed architect or a registered builder
- Geotechnical Report: You may consider this if the house is on a steep block as it will check the stability of the land
- Pest Inspection: It’s always a good idea to check for pests such as termites
- If you’re considering buying an apartment or unit, it might be worth arranging an inspection of the books and records of the owner’s corporation
- Always use qualified professionals for any inspections you organise
Making an offer
When you’ve found the property you’d like to buy, the next step is to make an offer. This is what you are prepared to pay. If you think the sale price is too high, then you can negotiate. Your agent will do this on your behalf with the seller. Although making an offer does not secure the property, it shows the buyer you’re serious.
Gazumping is something to be aware of when making an offer. This occurs after the negotiation stage, when the owner has accepted a price, but before the contracts are exchanged. During this time another buyer makes a higher offer or offers better conditions that the seller accepts, and the contracts are exchanged.
To avoid being gazumped, you can stipulate a five-business day cooling off period (unless you’ve bought at auction), which allows you to conduct searches, obtain reports, confirm your finances and gives you the opportunity to withdraw.
If you do withdraw during this cooling off period and no longer proceed with the sale, you will forfeit 0.25% of the purchase price from deposit you paid. It’s important to discuss your rights and obligations regarding the cooling off period with your solicitor or conveyor if you decide to go down this path.
Exchange of contracts
The contract sets out the terms and conditions of the sale, as well as identifying items that are either included or excluded in the contract. Two copies of the sale contract are supplied – one for you and one for the seller. It’s worth reading through this carefully, and raising any questions or concerns with your solicitor or conveyancer. When you are in agreeance with the contract and its conditions, both you and the seller sign your copies, then swap them (exchange them), and the deposit is handed over. Only when both you (the buyer) and the seller have signed the contract and exchanged copies, do you both become bound by the contract.
Need more info?
For a more in-depth look at what’s involved and all relevant information, such as the differences between strata property, established homes and land, as well as the process for making an offer, negotiation, acceptance and settlement, download our Professionals “Pathway to Buying your Home” booklet. Alternatively, call us on 02 4421 2644 for your free copy.
Sign up for our ‘Buyer’s Property Alert‘
Stay up to date with all new properties for sale in the Shoalhaven area as soon as they’re listed by signing up to our Professionals Nowra ‘Buyer’s Property Alert’. Alerts are sent Monday – Friday when new properties hit the market, and are based on your pre-selected property criteria, assuring you only receive listing information you’re interested in.
You can view our current properties for sale by clicking on the following links:
BUYING WITH PROFESSIONALS
A home is one of the biggest financial and emotional investments you will ever make.
You are making plans for the future, choosing an area that feels like home, and investing in one of the safest methods for acquiring wealth.
There are many things to consider from understanding the real estate market in the area you are interested in, the search process, inspecting properties, finding the right property, making offers, bidding at auction, securing finance and finally settlement.
There are also different considerations when buying existing or new homes, units, strata, land, rural, business or commercial properties.
If you don’t have the right knowledge and advice, purchasing a property can quickly become a daunting experience.
Sound like a lot of work?
Our superpower is working together, and since 1976 Professionals Real Estate has established a thriving progressive property group, with more than 225 offices across Australasia and a network of thousands of passionate people.
We believe that the most valuable property in real estate, is people. We are honoured to be announced the Gold Winner: Real Estate of the Readers Digest Quality Service Awards.
All our offices provide a deep knowledge of the local market, and being locals themselves, are fully committed to the community they serve. For anyone considering a purchase, we want to earn the right to be your first choice when it comes to property, now and into the future.
We are here to make you feel comfortable, understand your needs, work with your best interests at heart, assist you in making smart decisions, lead negotiations on your behalf and provide stability throughout the entire home buying process.
And most of all, we want you to be happy with your purchase. Your new home.
For anything you need during your property buying journey, your nearest Professionals office is waiting to hear from you. We’re ready to help. Find your local office today.