Tips for Buying a Property
Congratulations – you’ve decided to buy a property. This is an exciting time in your life, but it doesn’t come without its challenges. In fact, there are several key actions you need to take to ensure you find a home or investment that’s right for you. We want to help you make the best possible decision with your property purchase, which is why we’ve compiled this complete list of key tips you need to consider before entering the property market.
Know Your Spending Power
First and foremost, you need to understand what your budget is, as well as the upper level you’re willing to spend to secure a property. It’s common for emotion to factor into the property purchasing process – after all, it’s incredibly exhilarating. However, overspending and stretching yourself too thin will only cause problems down the line.
Work out how much you can afford to repay on a mortgage each month and examine your bank accounts to calculate what you can put down as a deposit. Once you have a clear understanding of your monetary situation and current financial commitments, you’ll be ready to move forward.
Speak with a Mortgage Broker
The financial market is very strict at the moment, with banks being pickier than ever as to whom they offer mortgages. As a result, it’s highly advised you book an appointment with a local mortgage broker.
These brokers will be able to give you unbiased, accurate information on the variety of mortgage products available, showing you which products best suit your needs. This can potentially save you a great deal of money down the line.
Examine Value in the Area
You should do your due diligence and conduct research in your target market to find out the sales value of similar properties. For example, if you’re interested in a 3-bedroom house in an outer-ring suburb, look at the prices that other 3-bedroom homes have sold for over the past 3-6 months. This will give you a rough idea of how much you should expect to pay for the property type you have in mind. It will also help you to identify opportunities where properties have been undervalued, as well as instances where you could end up overpaying.
Negotiate with Motivated Vendors
Patience is key when buying a property, but that doesn’t mean you should have to wait for long periods before receiving responses from vendors.
Looking for motivated vendors is a great strategy if you’re keen to move sooner rather than later. These might be individuals who’ve inherited a property from a relative, need to sell quickly to clear debt, or have to move across the country to take a new job. You and your agent will be able to work out the motivations for selling by asking why each vendor is looking to sell in the first place.
Don’t be Afraid to Make Multiple Offers
Missing out on your dream property is a horrible feeling. As a result, if you see more than one property you’d be interested in pursuing, don’t be afraid to make multiple offers.
Not only will this increase your chance of having one accepted, you’ll also be able to create a sense of urgency among agents, as they’ll be aware there’s competition for your purchase.
Be Prepared if the Property Goes to Auction
Each Method of Sale requires a slightly different course of action, but property auctions require specific preparation. When you enter a property auction, everyone else in the room will have a strong interest in buying the same property. It also takes place very quickly, so if you aren’t prepared, it’s easy to get caught up in the stress and excitement and bid too high.
You can counter this by attending the auction with a clear plan in place. Know the budget you’ve allotted to your target property and stick to it. If the auction takes the price over your upper limit, stop bidding and back out. It’s easy to get caught up in the moment and continue bidding to get the property, but it’s rarely worth overspending.