Purchasing your dream home will probably be one of your biggest milestones in life. Finally getting to own your own land, house, and not paying that monthly rent is one of the best feelings in the world.
But where should you start? While purchasing a home will take a lot of time, effort, and money, following these seven steps to purchasing your dream home will make your home buying journey easier.
1. Determine if you’re ready to purchase a home.
Before anything else, the first thing that you should ask yourself is: Am I ready to purchase a home? Purchasing a home is not an easy decision to make. It requires a lot of planning and considerations. The most important consideration is to ask if you’re financially ready.
Check your financial status. Is your savings enough for a deposit? Assess your lifestyle. Once you start paying for a mortgage, will you still have enough money for your expenses? Although there are ways to save money when buying a home, make sure to also have enough money for an emergency fund. Experts suggest saving three to six months’ worth of living expenses as your emergency fund. Through this, you will still be able to pay for your mortgage should there be problems with your income in the future.
Research about the real estate market in your area. Real estate markets usually go up and down depending on the economy and other factors. Research on forecasts and predictions. Is now a great time to buy a home? Or are prices predicted to go down after a few months?
Determine what type of property you need and how much you can afford. Look at which areas have safer or more accessible neighbourhoods. Maybe there is a developing area that offers affordable prices. Look at all your options to see the best deals and offers in your area.
3. Find the right buyer’s agent.
Once you’ve familiarized yourself with the real estate market in your area, look for the right buyer’s agent that can help you with the home buying process.
Buyer’s agents have an extensive network that can help you find great properties – even those that are off the market. They can also give you more accurate market updates, help you in negotiating the property price, and assist you in getting the right home loan. Your home buying journey will be a walk in the park once you’ve got a trusted and experienced buyer’s agent.
4. Look for the right mortgage for you and get pre-approved.
Before you can look for the home of your dreams, you need to get pre-qualified for a mortgage to determine how much you can actually afford. To get pre-approved, you’ll need to provide financial information, such as proof of your income, your savings, and investments, to your mortgage banker or bank.
Once you’ve submitted this information, your lender will determine how much they can lend you. This will give a head start on the price range of houses that will fit your budget.
5. Start shortlisting options and make offers.
It’s always good to have options. Once you’ve discussed what you are looking for in a home with your buyer’s agent, they will provide you with property options based on your criteria. It is now time to look at those properties, your buyer’s agent will schedule visits, and shortlist options.
When assessing your options, always take note of your requirements. Find the property that fits your needs the most. If you are having trouble finding the property that ticks all of the boxes on your checklist, select your negotiables and non-negotiables. Negotiables are the things that you want in a home but do not necessarily need – they’re just nice-to-haves. Non-negotiables are parts of the home that you won’t be able to live without.
Once you’ve decided on a property, you can now make an offer. Your buyer’s agent can help you in negotiating the best price for your chosen home.
6. Request a building inspection as part of your offer.
Make sure the buyer’s agents add special conditions to your offers like building and termite inspections. This is a mistake that most buyers commit when buying a home. They forget about doing an inspection and are surprised by the issues that still need to be addressed in their new home. Visiting and checking the home on your own isn’t enough. Make sure you engage a reputable Building inspector, as they are experts who are more knowledgeable about what needs to be checked.
Doing this prior to your offer often can help in identifying if there are issues that need to be fixed, this can help you assess if purchasing the property is worth it. An experienced Buyers Agent can give good advice in these areas. It can also help you negotiate further with the seller. You can ask them to include the repairs in your contract. Discuss with your buyer’s agent to know the best offer you can make.
7. Offer accepted.
Once your offer is accepted, your buyer’s agent will give you guidance through the maze of preparation required to be ready for the final settlement day. All the needed documents – contracts, insurance, and loan documents must be in order for a smooth settlement day.
This might seem a lot of work but no need to worry. Your buyer’s agent will be there to assist you step by step.
Seven days prior to settlement day in Western Australia a final inspection of the property can be made to make certain all the special conditions have been attended to, things like hot water systems, stoves, air conditioning, and alike are all in working order.
On average, once the offer has been accepted it can take from 21 days upwards to settlement day, depending on the conditions in the contract to be met (such as finance approval, etc). There might be some stress and challenges along the way, but an experienced Buyer’s Agent can help ensure that they can deal with every situation for you. but be patient it will surely be worth it in the end.
Once you’ve followed these seven steps to purchasing your dream home or investment it’s time to enjoy the fruits that your purchase offers.
For more information on the steps to purchasing your dream home or investment in Western Australia contact Clive@buyingperthrealestate.com or visit www.buyingperthrealestate.com