The process of purchasing a home may present complexities, but adopting certain steps can contribute to a smoother overall experience.
1- Arrange Pre-approval
Home loan pre-approval involves obtaining conditional approval from a lender for the desired borrowing amount before identifying a specific property. This preemptive step is beneficial for streamlining your search and providing the confidence to submit an offer when you find the ideal property.
2- Appoint Your Conveyancer
A conveyancer or solicitor can facilitate the property ownership transfer process on your behalf. Once you’re prepared to make a purchase, they will examine the contract of sale, verify its completeness, and may assist in coordinating pest and building inspections prior to the contract exchange.
3- Stay ahead of market trends
If you’ve been exploring the housing market, you likely have a decent grasp of your local real estate dynamics. However, if you haven’t, it’s advisable to research before making your initial offer. Understanding recent property sale prices and the time properties spend on the market will provide valuable insights.
If time is a constraint but you want to ensure a realistic offer, engaging a buyer’s agent could be beneficial. These professionals specialize in price negotiation and possess a keen understanding of the current market value for your selected property.
4- Hone your negotiation skills to achieve optimal outcomes.
Navigating a property purchase negotiation can be intimidating, but ensure to address these fundamentals beforehand:
- Familiarize yourself with the market and approximate property value.
- Document your offer in writing.
- Secure pre-approval for your finances.
- Cultivate a rapport with the real estate agent; negotiations are typically conducted through them rather than directly with the seller.
- Mentally prepare to walk away if terms are not favorable.
To enhance the appeal of your offer, consider providing a ‘sweetener’ to the seller, such as a shorter settlement period. Always consult with your solicitor and mortgage broker regarding the implications of such incentives and confirm that requisite property inspections are completed.
5- Gain insight into diverse purchase methods: Private Treaty versus Auction
When purchasing a home, you typically encounter two options: private treaty or auction, each with its distinct advantages and drawbacks.
In a private treaty, the seller establishes the price, and you, as the buyer, engage in negotiations until a mutually agreeable price is reached. In many instances, the negotiation process is facilitated primarily between the seller’s real estate agent and the buyer.
Conversely, auctions involve interested buyers bidding on the property, and the property is awarded to the highest bidder. If numerous properties you are interested in are being auctioned, there’s a likelihood that the one you desire might also be auctioned. Attending a few auctions as an observer before participating as a buyer can provide valuable insights into the process.