How to Simplify the Process of Buying a House Checklist? Here are 10 Comprehensive Steps You Should Consider While Buying a House Checklist.
Checklist for Buying a House Checklist
It can be a great experience to enter the real estate market. You may even realize a long-held dream. The buying process can be tricky if you are not prepared. As you begin your search, there will be many buying a house checklist on your mind.
- Can I find “my ideal home”?
- How many weekends am I going to spend house-hunting?
- What is happening to the real estate market?
- What should I pay for my car?
- What happens if I need to attend an auction?
- Can I trust the information that my agent gives me?
If you want to save time and money, it is better to make the buying a house checklist . If you want to find the “right” house, you will have to spend some time to get it right. This “buying a house checklist” on house hunting” will help you along the way. It may seem difficult to find the perfect house, but if you plan your strategy ahead of time, it will make things a whole lot easier.
Choosing Your Wants and Needs
Two things need to be worked out in advance:
- What suburb is best for you?
- What kind of home or apartment do you want?
Prior to trawling hundreds of properties on the internet, take a step back and create a buying a house checklist of what you need and want. You will save a lot of time by deciding your goals at the beginning and what you are looking for. Consider your life stage. You can “future-proof” your home for the next 5 or 10 years. What do we mean by buying a house checklist ? We are referring to what changes in your life will likely occur in the near future and how they may affect your decision to buy a home.
- Do you plan to have a family in the future?
- Change of job or city?
- Start a home-based business
- Downsizing?
- Want more lifestyle or less maintenance?
When buying a home, deciding which suburb is best for you can be difficult. Drive around the area you are interested in. Visit the local shops, cafes and restaurants and chat with the residents. Discover what draws people to a suburb. You can ask yourself if you like the urban vibe of the inner city with all the amenities within walking distance, or if you prefer the quiet tranquility of the suburbs. You may want to be near the water, the harbour or the beach. Is it important to be near the train or your children’s school? Budget will also determine the suburbs that are best for you. This is the first step in creating a “property short” which will guide you through the process of assessing and selecting suitable properties.
The Money
You need to get your finances in order before you make buying a house checklist . It’s pointless to shop for property if you don’t have the money. Talk to your bank or finance broker and confirm a pre-approval. Do not just look for the lowest interest rate. Also, consider the flexibility of the loan and the amount borrowed. Finance brokers can help you choose the best mortgage option. The market for mortgages is very competitive. Pre-approval of your finances is free and will allow you to move quickly when you find the perfect home.
Pre-approvals usually last for a minimum of three months. Your borrowing capacity will help you to narrow down your search for properties within your budget. A second tip is to ensure that your 10% deposit is in “clear fund”, i.e., the money is easily accessible. Your ability to buy a house in the short-term will be hampered if your money is locked up in term deposits or shares.
Put in the Research
If you were searching for a car or other major purchase, you would put in the work. A new home purchase is one of the biggest decisions you will make. An online search for properties is a good place to start. You can start to narrow down your buying a house checklist to buy using the search criteria you set up. Remember, there is nothing like seeing the house “in person”. You can really see what a house has to offer when you do a physical inspection. You will soon learn that appearances are deceiving and that a wide-angle camera is an excellent tool for agents who want to make smaller rooms appear larger on the internet.
Every weekend, set aside some time to do research on potential properties and inspect them. You can get a good feel for the current market by looking at 50 to 100 properties for sale. It is also helpful to track recent auction results and private treaty outcomes. You can be notified of new listings by forming a connection with local agents. While you are inspecting each property, make notes about what you like and don’t like. This is important because it’s very easy to forget the things you saw four week ago. Schedule inspections of houses you are interested in to be done at different times during the day. Note down any noises you hear – such as traffic, nearby neighbors or transport hubs like airports and stations.
Draw Up a Shortlist
You may need to refine preferences after you have looked at a number of properties. Are your expectations realistic? You’ll probably have to settle on a two-bedroom condo if you want to stay under $500k. Maybe a garage with a lock will be sacrificed to make room for a vehicle. Consider also expanding your search to other suburbs. It’s now time to make a decision and eliminate those properties that aren’t worth your consideration. You should review your notes to come up with three properties or less that you think could be a good fit for you. Take into consideration the following features, and make an evaluation:
- Price Asking
- Close proximity to schools, shops and transport links
- Age and condition
- Street Appeal
- Aspect and Light
- Does it have an efficient floor plan?
- Type of construction (e.g. Brick or Clad
- Renovation potential
- Styles for kitchen and bathroom
- Room Sizes
- Living Spaces
- Block size
- Maintenance
- This suburb has the potential to grow in value.
This will help you to identify your needs and wants for buying a home and create a realistic list.
What is it Worth?
It’s time to evaluate the value of the home you want. Check out recent sales and auctions of homes in your suburb. Compare properties of similar value. You can ask local agents about recent sales. It takes time for properties to be sold before they are listed on the public registry.
- When calculating the value of a property, a bank valuer will consider these factors:
- Size of the building or land
- Beds/bath/garage
- Condition/Age of the property
- Views
- Nearby amenities
- Functionality
- Add value
- Land value
- The local market
- The property’s relative inferiority, superiority or similarity
The property market changes constantly when it comes to purchasing a home. The supply and demand will determine the price that people are willing to pay. Other factors are at play, such as consumer sentiment, seasonality, interest rate changes and economic growth.
The Legals
Select a lawyer early on in the search process, and inform them that you are planning to buy a new house. Your lawyer is a valuable ally as they will review the contract and look for any negative contract conditions or issues relating to title. The solicitor may also be able to negotiate terms with the seller’s lawyer, such as the period of settlement, the default rate of interest, the deposit amount, or inclusions. If you need to exchange contracts quickly, make sure that your lawyer is readily available.
Negotiating the Deal
After months of searching you’ve finally found the home of your dreams, but an agent tells you that there are two other buyers who are “very interested” in making an offer. What should you say? What should you do? Negotiation is a skill. It’s the place where deals are made and broken. Keep emotions out of the equation. Understanding the motivations of the sellers is an important first step. Knowing the real value of the property on the current market is even more important. It is important to develop a strategy that will allow you to secure a property before other buyers. First impressions are important. He or she is assessing if you are serious about buying or just window-shopping. The value of the offer and its timing are important. You won’t get taken seriously if you offer too little. You may lose out if you are too slow. You’ve paid too much! You can either try to estimate the value of the property yourself, or hire a buyer agent to negotiate and appraise the property on your behalf. It has been proven that getting Independent advice and removing emotion is very effective.
Exchanging Contracts
You can sign the contract once your lawyer has approved it. The deposit is 0.25%, which covers a cooling-off period of five days. The seller signs a copy and then the solicitors “exchange” the contracts to verify that the sale has taken place. The remaining 10% is due five days after the contract has been signed. You will be required to pay a 10% deposit at the time of the auction, if you are successful. There is no cooling off period.
Is It As Good As It Seems.
During the cooling-off, period, pest and building inspections highlight any imperfections in the property. You may be discouraged from buying the house. It is common for houses to have problems. However, it’s important to determine whether the problem is cosmetic or if there are more serious issues that require expensive repairs. It’s important to keep an eye out for any cracks but don’t let minor flaws discourage you. There will be some minor cracking in the foundation and “drummy” tiles. Look for signs of active termite infestation and structural movement that could lead to future problems. Hire a professional pest and building inspector to evaluate the property that you are interested in buying. A quality inspection report can cost anywhere between $500 and $700. This report can either be completed during the cooling off period or before an exchange.
Arranging a Settlements
Normal settlement takes place 6 weeks after the exchange. Your lawyer will be present at the settlement to arrange payment and transfer title into your name. Make sure that you have the funds or equity for a final settlement. The bank will issue a chequess (up to a limit agreed upon) for the remaining balance (less the deposit paid). Stamp duty, solicitor fees, water and council rates, mortgage duties, etc., all require adjustments.
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