Buying a home is a big move so even the decision of looking forward and taking such a step deserves celebration. Cheer over a glass of beer while you look into the steps to buying your first home.
It might seem an easy ride but let us tell you, there are chances for you to get hurdles in the process. Also, considering the fact that the real estate industry is dynamic and changes in no time, buying as a first home buyer may get a bit harder. However, there is nothing to worry about since there are professionals, i.e., real estate agents in wollert, Melbourne, to take care of everything that is related to buying and selling properties.
Hawks Property Experts has a team of seasoned real estate agents who look into every single aspect right from day one. Let us give you an overview of how real estate agents work and what they do in a day. But before heading, if you are looking for houses for sale in Wollert, contact us.
Real estate agents at Hawks Property Experts are licensed professionals in Melbourne who help clients in buying, selling and renting properties. The real estate agents earn a commission whose amount varies from state to state. The agents have to play different roles in a day like:
- An agent is a researcher.
- An agent is a sales agent.
- An agent is a buyer’s agent.
- An agent is an investment property manager.
- An agent is an auctioneer.
- An agent is an expert advisor.
- An agent is an administrator.
There are so many different hats that a real estate agent has to wear as a professional. The agents have to stay proactive and, on their toes, to stay updated with recent happenings. But every little effort is worth it when clients get the price or the property they deserve.
Now, let us see the steps through which you will have to go to buy your first home.
Save For a House Deposit
Let us all face reality i.e., it is not easy to buy a home as a first home buyer without any savings. For a house deposit, it is good to save. So, this is the first step to getting your finances and the budget sorted.
You can make a budget to identify how much you can afford to save for the deposit. For that as well, you would need to do some research and understand the market condition. A general idea of house prices will help in setting the right goal towards buying a house.
See What You Can Borrow
Every individual is different and even the budgets will not be the same. How much you can afford to borrow will completely depend on your requirements. In this case, the real estate agent will come forward and will give you options to choose from based on your individual needs.
How much you can afford to borrow will also depend on the following:
- Yearly income and financial commitments.
- House deposits and any other savings.
- Credit report and credit report.
You should be realistic about the repayments you can actually afford.
Consider this- If interest rates rise, your loan repayments may also go up. So, give yourself some time and decide patiently.
Find the Best Home Loan Rate
When you look for a good deal on a home loan i.e., mortgage, the interest rate matters. A home loan is a long-term debt so even a small difference in interest rate will add up with time.
Compare Home Loan Rates
It is advised not to settle for one right after considering the first home loan. Contact at least two different lenders and see different home loan options. Then choose the option that suits your situation. A rate even if it is 0.5% lower can save you thousands of dollars with time. So, choose wisely.
Get Help If You Need
With different lenders to choose from, you may decide to get a mortgage broker to get loan options for you.
Consider getting pre-approval of loan from a lender. They will ask for evidence of your current financial situation and assess your ability to repay the loan. Pre-approval of the loan will last for about 3–6 months and shows you are eligible to apply for a loan up to some amount. It does not commit you to a loan but lets you have an affordable price range and tells sellers that you are serious about buying.
Find a House to Buy
Finding a balance between the lifestyle you want and what you can comfortably afford is important.
Reason Why Are You Buying
Reflect on why you want to make a purchase. Do you want to buy to grow your family? Do you want to renovate or is there any other reason? If you are buying with a partner, talk about it together and then take a step ahead. Being clear about the reason you are buying will always help you in narrowing down the property search.
Consider Must-Haves and Nice-to-Haves
Prepare a list of the following:
- Must-Haves – The things you cannot do without such as property size, layout, public transport, schools.
- Nice-to-Have- The things you can do without for now such as design, fittings and outdoor space.
By focusing on the must-haves, you will be able to prioritize the things that matter the most.
Stick to Your Price Range
If you have been pre-approved for, say $500,000, do not waste your time by looking at properties advertised at $600,000. If you hire real estate agents, they will help you get to the home of your dreams without you having to go through any trouble searching or talking to vendors etc.
Negotiate to Buy Your House
If you are a solo rider on the journey of buying a house, then you will have to negotiate and it is one of the most important steps. If you fail to negotiate, you may lose a good deal. But if you had a real estate agent by your side, things would get easy. Real estate agents in Melbourne will understand the market well. They conduct negotiations daily. So, they would better know about the ins and outs of property negotiations.
Auction or Private Treaty
If you are a first home buyer, observe a few auctions so that you understand how they actually work. Bring an experienced friend or a family member with you to help you make a bid. Or you can also consider hiring a buyer advocate to help you with the process of buying.
If buying privately, the contract of sale will include the deposit amount and the time you need to pay it. There is a short cooling-off period in some states and territories. You can also get out of the contract and get most of your deposit back if you give written notice.
Contract of Sale
The seller or a vendor of a property will prepare a contract of sale. As a potential buyer, you should first inspect the property and then talk to the real estate agent or seller. Then, seek the contract of sale. You can also get help from a solicitor or a conveyancer.
Building and Pest Inspection
Once you have found a property you like, get a pet and building report done by a professional:
- Building Inspection — Structural issues, dampness, electrical safety, maintenance cost or repairs.
- Pest Inspection — It includes termite activity and other pest issues.
Make An Offer
When you are ready, there are two ways to make an offer:
- Unconditional — A binding contract to buy outright, if you have confirmed finance and if you are sure about the property.
- Conditional — Becomes a binding contract to buy, if certain conditions are met such as valuation, finance approval and inspections.
Finalize Your Loan
Tell your lender that you have found a property you wish to buy, and apply to finalize your loan.
Settle on Your New Home
This is the point that takes you even closer to finalizing the deal. Just a few more costs to take care of before you can finally move in.
The settlement date will be when the property title is transferred into your name and your mortgage starts.
The contract of sale sets out the settlement period – the time when you have to pay the full purchase price. Your conveyancer or solicitor will finalize the settlement with the lender and vendor. After this, you will get the keys to your new home.
It is a one-off state government property-transfer tax. You typically need to pay this within 30 days of settlement.
If you are a first home buyer, you must check if you are exempted from stamp duty or are entitled to a rebate or concession.
Home and Content Insurance
To protect your home and contents against damage or loss, get insurance.
Stay on Track with Your Repayments
Now, it is time to update your budget with your mortgage repayments, including ongoing costs such as council rates and land tax (when known). You may take some time to get accustomed to extra expenses so keep an eye on your spending for a while.
Whether you are a first home buyer, or you are buying for a second or third time, having a real estate agent by your side reduces the burden and makes your entire real estate journey smooth. For any queries regarding buying, selling or renting, contact Hawks Property Experts.