5 Things you MUST do before Making an Offer on a House
Despite surging property prices, owning a house is still the dream for many Australians. Owning your own house gives you a sense of security and place to call home. It also helps to secure your financial future. By the time you enter your 60s, you will have a valuable asset to assist you throughout your retirement. Hence, the home buying decision should be wise.
Property in Australia isn’t cheap, so buying your dream home will take some serious financial planning. Considering all the facts, there are a few things that you must do before making an offer on a house.
1. Sort out your finances
Potential buyers commonly make the mistake of overlooking the overall cost of purchasing a house. Making the mortgage payments is not the only expense associated with the home purchase. There are plenty of other expenses that you need to take into account.
● The deposit:
This may sound like a no-brainer, but there are plenty of home developers who make people believe that there you can get away without putting down a deposit. Though it’s rare, you shouldn’t fall into such traps. Furthermore, you should aim to deposit at least 10% (if not 20%) of the total amount. The more you can pay down straight away, the better your loan options and the less interest you will have to pay over the life of the loan.
● Stamp duty:
This is a government fee that every individual is liable to pay. It can be around 5% of the property’s cost; the fee may differ from state to state though.
● Legal and agent fees:
This can include application fees, agent fees, valuation fees and conveyancing fees.
● Settlement costs:
This final expense depends on the type of property you’re buying and the individual business. It includes government inquiry fees, land registry fees, title insurance, PEXA fees and strata statements.
2. Sort out the contract
Before signing the contract, it’s essential that you get an independent conveyancer or property lawyer to review it. Some potential buyers may find some property attributes pretty obvious. But self-acting comes with its challenges. However, a solicitor will go deep into matters like strata fees, owner’s cooperation fees, zoning and solve every challenging problem.
3. Conduct building and pest inspection
Pre-purchase property inspections are essential before committing to any purchase. It may seem tedious to find the best inspection company in the town but the search would be worthwhile. It is a whole lot better than finding it when it’s unduly late.
Before you make an offer, conduct the building and pest inspection because addressing structural issues afterwards can be expensive. Additionally, you’ll get peace of mind or a bargaining excuse when you enter into negotiations. All things considered, research what you need to include in the inspection report.
4. Organise a settlement timeframe:
Every vendor has different guidelines for settlement timeframe. Therefore, it’s good to seek information on your settlement timeframe with the agent beforehand. You should even solicit confirmation for various terms prior to making a solid offer for your house.
5. Is the offer realistic and will the vendor accept the offer?
This is the final yet most essential step for making an offer on a house. The offer proposed should be realistic enough to be taken earnestly. Otherwise, it can jeopardise your chances of success because the real estate agent can dismiss you immediately. Therefore, before making an offer, always think about whether or not it is acceptable.
Also, always remember that real estate agents are the topmost player; they can forecast the deal by your body language and emotions. So, control your actions and increase your bargaining power but realistically.
Finding a home of your dreams is not an easy task. But the harder you’ll work, the more satisfying would be its rewards. Add in the property inspection for your house, the perks would be extra satisfactory.
