10-step homebuyers’ checklist
Whether it’s your first home or your fifth, there’s a process involved in buying a property.
After all, purchasing real estate is among the biggest transactions you will make in your lifetime and it takes research and due diligence to ensure you make the right decision.
Here’s a 10-step homebuyer’s checklist to help make that decision easier…
Step 1 – Know your budget
Your budget is probably the biggest factor that will affect the type of property you can afford to purchase. Long before you start the house hunting process, get crystal clear on exactly what funds you will have at your disposal.
This involves looking at your budget and income, and also speaking to a lender or financial advisor to see what loan options are likely to be available.
Step 2 – Consider extra costs
There’s more to buying a property than just purchasing the home, and you need to take these costs into account.
Among the additional costs you need to budget for are pre-purchase inspections, conveyancing, and removal costs, as well as long term costs such as council rates, insurance, and maintenance and repairs.
Step 3 – Your deposit
Your deposit will determine how much you’re able to borrow and also whether you’re ready to proceed with the purchase.
Clearly identify how much deposit you will have along with where it will come from. For example, are family members helping you out, will your deposit come from capital in other properties, or are you actively saving?
Step 4 – Do your research
Purchasing a property requires research. Long before you actively start the property hunt, attend open homes, research prices and get a good overall feel for your local market, including supply and demand.
Step 5 – Head over heart
Buying a property can be an incredibly emotive process, but it’s critical you lead with your head not your heart.
Just because you fall in love with the look or feel of a property doesn’t mean it will suit your lifestyle, budget, financial goals, or housing needs.
Step 6 – Ask the big questions
When inspecting properties and meeting with real estate agents, don’t be afraid to ask the big questions, including:
- How long has the property been for sale?
- What is the reason the owners are selling?
- What improvements have been made to the property?
- How negotiable are the sellers?
Step 7 – The finance process
Obtaining finance for a property purchase is possibly the most stressful part of purchasing. Know how the process works, and if possible, obtain mortgage pre-approval prior to making any offers on a property.
Step 8 – Be patient
Buying real estate requires patience. There will be times when you find what you think is the ideal property only to find it has potential problems or someone else gets in first and purchases it.
Understand that this is part of the process, and there will be ups and downs along the way.
Step 9 – Pre-purchase inspections
Pre-purchase inspections including building inspections and pest inspections are an absolute must. In addition, don’t forget to undertake your own due diligence about the property, looking at things like zoning, future infrastructure plans and more.
Step 10 – Contracts and conditions
The final piece of the real estate purchasing puzzle is the contract of sale. Be sure that you understand the clauses and conditions prior to signing and have a good legal representative on hand to guide you through the process.
