How To Prepare When Buying A Property
Buying a property is one of the most important moments in life, and that can be extremely daunting! But it’s important to remember - property is bought & sold every day, and the process is well established. Your greatest tool is preparation. Here are 6 things to consider as you begin the process of purchasing a house.
Evaluate your Finances
The first, and most important step, is to evaluate your budget and finances. You should take note of the funds you have available & how much you’re able to borrow. This will help you to determine your budget.
In addition to the purchase price, you should consider the upfront costs of purchasing. For example, stamp duty, legal fees, and registration fees (you can access a free stamp duty calculator here.). Seeking professional advice from a broker can provide clarity.
Obtain A Pre-Approval
Before you can proceed to purchase, it is essential to establish how it will be paid for. For most people, this will mean a loan. Before you make an offer, it’s beneficial to have a pre-approval in place. This will assist in your property search, as generally you’ll be pre-approved for a maximum amount & certain type of property.
It’s also important to remember you will typically need to pay the deposit upfront. The standard deposit is 10%, however, a reduced amount can be negotiated prior to exchange. Once your pre-approval is in place, you’re ready to begin your property search!
Begin Your Search
Now that you have your budget & pre-approval in place, you can begin your property search. Generally, your budget will be the key factor in determining the right property for you. It can be helpful to attend open homes & auctions, to get an understanding of interest levels & sale prices of the properties you like. Before long, you’ll have a good idea of the type of properties in your budget.
When the time comes and you’ve found a property you’re interested in purchasing, it’s time to make your next move. You should express interest in the property via the selling agent & obtain a copy of the contract. At this point, you can contact Paul Denny Conveyancing for a contract review. Our team will assist with any enquiries and advise on the next steps.
If you decide to proceed with the purchase, we can arrange any necessary inspection reports, engage in negotiations with the Vendor’s Conveyancer on any contract amendments & get you ready to sign contracts.
Make Your Offer & Exchange
The purchase of a property can happen in two ways, via private treaty or at auction. If buying through private treaty, you’ll have the opportunity to submit and negotiate your offer via the selling agent. If you attend the auction, you’ll place your bid against other interested parties.
If you’re successful in your purchase, we will assist you in proceeding to exchange of contracts. The contracts will be signed, dated & the deposit paid. It’s at this stage the sale becomes binding. If you’re unsuccessful, don’t lose faith. The process of finding the perfect property can take time!
Preparing For Settlement
Now that you’re exchanged, we can begin to prepare for your settlement. The main aspect will be your financial preparations. Paul Denny Conveyancing will liaise with the real estate agent, the Vendor’s Conveyancer & your lender to ensure the necessary arrangements are made. The date for settlement is laid out in the contract, which is typically 6 weeks after exchange. Most of the preparation work is completed during this time so that the day of settlement is as straightforward as possible.
Settlement Day
The day of settlement is the day you officially become the owner of the property. The balance of the sale price is transferred to the Vendor, and you’ll obtain full possession of the property. Following settlement, our office will obtain the relevant paperwork to confirm registration is complete.
You are now the proud owner of your new property – time to move in & enjoy!