EVERYTHING A FIRST-TIME BUYER SHOULD KNOW (Part 2)
Category Advice
As a first-time home buyer, understanding the ins and outs of the home search process can turn your journey into a delightful adventure. Wakefields Real Estate presents Part Two of our comprehensive guide, "Everything A First Time Buyer Should Know," focusing on the exciting process of finding your dream home.
Now that you have a clear budget in mind, the real fun begins! Start envisioning your ideal neighbourhood and the perfect home for you. Being prequalified for your home loan is a great advantage, smoothing the path ahead. And don't forget about enlisting the help of a property practitioner, who can turn your dream into a reality. Whether it's a trusted friend's recommendation or a well-established agency, finding the right person to guide you is key. Together, you'll navigate the complexities of buying a home, ensuring a smooth and exciting journey toward homeownership.
WHERE AND WHAT TO BUY?
Ask yourself a few questions:
- What's your lifestyle like? Consider both your leisure and work activities.
- Do you work from home, or is someone at home full-time?
- Are you comfortable in a smaller space like an apartment, especially if you spend most of your time outside?
- Do you prefer living in a complex or a standalone property? Complex living means shared responsibilities and rules, while standalone homes require more maintenance.
- Check the body corporate rules in complexes for pet policies, noise restrictions, and child-friendly facilities.
- Do you have young kids who would benefit from playgrounds or pools nearby?
- Is security a priority for you?
Visit the Neighbourhood
- Does the property have easy access to public transport?
- Are there good daycares/schools within walking/easy driving distance?
- What are the surrounding properties like?
- What is the area/suburb like? Consider taking a drive through the area at different times of the day/evening.
When you've got a clearer picture of your needs, it's time to team up with a property practitioner. They'll show you properties in your price range, helping you refine your search by discovering what you do and don't want. Property practitioners offer invaluable insights, pointing out aspects of properties and areas you may not have considered. This two-way dialogue lets you ask questions and explore properties with confidence.
Making an Offer
When you've found your dream home, it's time to make an offer. The property practitioner will guide you through the process, helping with the paperwork for the Offer to Purchase (OTP).
This document outlines all the conditions for the sale to proceed, like getting a home loan or selling another property. The property practitioner will explain everything, ensuring you're comfortable before signing. Once both parties sign, it's a legally binding agreement, and you're one step closer to owning your own home!
Contract of Sale - What to look for
The property practitioner will present your offer to the seller, on your behalf. If the seller responds with alternative conditions or a revised price, you can then decide whether to adjust your offer accordingly. The finalisation of a sale agreement involves more than just the price; for example you may also need to discuss which fittings and fixtures are included in the sale or whether or not the offer is subject to various conditions. The property practitioner will go through all of these aspects and outline them Offer to Purchase (OTP).
Concluding the Sale
Sealing the deal! Once both parties sign the Offer to Purchase (OTP), the sale is on! Now, it's time for the exciting part: sorting out the finances and officially transferring the property into your name.
Next month:
PART 3 - FINANCING YOUR DREAM HOME, specifically how to apply for a bond; financing options; trust accounts and the importance of FICA
Author: Haydn Wakefield
