Getting your finances in order before you start actively house hunting is generally your first step. Knowing what your maximum limit is will allow you to target properties within your price point, not getting disillusioned by missing out by a higher offer. Part of The Process is determining if you qualify for finance, should you wish to buy first and then sell second. There are several terms for this, including “Home to Home loan” and of course, “Bridging Finance”. Don’t be scared or put off by what you may believe regarding Bridging finance; if calculated and used correctly, this option can be the difference of being able to purchase your dream home or not. At Finance My Home, we have celebrated many settlements using Bridging finance as our main weapon when assisting our clients into their new home. By all means, check through the many testimonials and Case Studies, all are real people and circumstances. After all, once you are fully prepared and confident you’ll only have one job, and that’s to fall in love and secure your dream home. To determine if you may qualify for Bridging Finance, at least from an equity position go to the Bridging calculator, complete as best can and the calculator will provide an immediate response. (Note that this is no way an approval, only an indication that Bridging Finance may be an option) Once determined that Bridging Finance is a possibility, the option is to proceed to formalising a Pre-approval and obtaining relevant valuations on existing properties. This is again to remove as many “variables” as we can.
RESEARCH
This is where the fun really starts. Whether buying, selling, or both, there are a lot of online tools that can help educate you on property values and also how to go about putting in an offer on a property.
Buying: House Hunting:
Understanding what you want from a property – as well as what you don’t – will help you narrow the search. Some things may be non-negotiable ie number of bedrooms, close to a schools, etc but understanding where there’s room for compromise ie swimming pool, modern/older etc will help in the decision-making process. Once you have removed all of the variables as discussed before and you only have the one job, which is to “fall in love,” a lot of buyers find their dream property within 2-3 weeks.
There are a few companies that provide more accurate information, that is unbiased and reliable source of data, supported by industry experts. At Finance My Home, we have access to RP Data, which we have been using for over 10 years now. With this amount of experience, we have been able read and interpret the information and results thus being able to provide quick and accurate information to assist with your decision making. Researching your next property has never been easier, just need to provide addresses of properties of interest and we can provide reports at no cost to yourself. As a seller, it’s great to be able to see what the public have access to about your property, making sure that the information that is held by RP Data is correct, ie number of bedrooms and bathrooms etc, understanding that if you’re asking a lot more than what the RP Data report is may be an issue. The RP Data report will also provide sales data of similar properties that have recently sold in the surrounding area that allows you to compare.
Online descriptions and pictures are designed to encourage people to view both online and in person. You’ll soon work out which agents offer genuine property descriptions and photos on their marketing material and websites. Take a pragmatic approach when viewing any property – look past what’s currently there, especially if the property has been virtually staged. Try and look passed the staging furniture and picture how you would live in the property. The advantage of staging furniture is that it gives you a very good idea as to how the property can be set up with correct furniture and sizing. When physically viewing properties, try and look for structural or major defects that may exist, taking note of the external parts of the house such as guttering and downpipes, making sure they are in good condition and serviceable. Check the roof line to ensure that it looks straight etc. After all of this, you can always ask the real estate agent if he or she is aware or should be aware of any issues that exist or have previously existed and have now been rectified. They are obliged to advise if there are material facts about the property that may negatively impact your buying decision. If buying an apartment or unit that has a Body Corporate for the strata complex, it is a good idea to request and read through the Annual General Meeting minutes of the latest AGM to ensure nothing untoward has been mentioned or discussed.
Negotiate
Now that you’ve found your dream next home, you need to secure it. You need to show the buyer that you are the best person for them to sell to; your finances have all been approved in advance – including any bridging loan if you’re buying first; that you can meet their settlement criteria but equally as important, you feel an emotional tie to their property and will look after it when they leave. As part of the finance, at Finance My Home, we have helped many buyers win contracts by speaking to the real estate agent on behalf of the buyer, this seems to be a powerful tool which the real estate agent is very happy to engage. After all, the real estate agent knows that if a mortgage broker is calling for a buyer that they must be well organised with their finances. One of the main questions is to ascertain what settlement period would suit the seller best, offering a short settlement may seem to be the best option,but not if the seller hasn’t got a property to move into. The agent will normally advise a timeframe that suits best, being longer or shorter period. The main timeframe that gives the best advantage is for the finance period, which we offer between 6-8 days as long as our buyer is organsied and has normally obtained pre-approval finance.
Buying: Offer/Auction
You’ve spent the last few months looking at properties and now want to start offering. Again, preparation at this stage will ensure you’re ahead of the game and in pole position as a buyer.
In a competitive market, personal experience or recommendations are a great way of finding the right conveyancer or solicitor who will take your secured property to settlement. Having a conveyancer in place when you come to make an offer means you continue to be best placed for any seller and shows your keenness to progress the sale.This is part of being organised, at Finance My Home we have relationships with many settlement agents and are happy to provide details. If buying first then selling second, it’s best to engage the same settlement agent for the purchase as well as the sale.
The hours of research you’ve put into this point now start to pay dividends. Balance the emotional tug of that dream property against the hard work you’ve done to date to establish what you can afford to buy under those market conditions. Remember, it’s all about balance.
Settle
This is literally where things start to ‘settle’ down; or at least they should do. The dynamic nature of The Process to this point are now replaced with structure and due process and is about efficiency and security. Buying: Sign Paperwork Up to this point everything has been done by the rule book and followed best practice. Settlement ensures that all the necessary boxes are ticked and you secure that dream home.
Buying: Sign Paperwork
Up to this point everything has been done by the rule book and followed best practice. Settlement ensures that all the necessary boxes are ticked and you secure that dream home.
At this point you’ve shown your commitment to the deal by paying a deposit, confirming your funding and signing all relevant paperwork. All things being well, you can start to look forward to getting those keys and making ‘that house, your home’. If you’re buying a reno, you may want to engage an architect or builder or speak to the council about options.
Before you do though, you need to ensure you not buying what you think you’re buying and not a property that’s going to cause issues and cost you money from the day you walk in through the front door. Again, recommendations from family and friends are always useful but providing these inspections are carried out by people with the correct accreditations, these services are more transactional and less emotive than with other services you’ll employee during The Process.
