Like all first times, buying your first home can be a daunting, intimidating and downright terrifyin
5 ways first home buyers can get a leg up over competitors!
1. Work out how much you can actually borrow
One way to get rid of your competitors? Don’t run in their race.
Working out your price limit, and applying for pre-approval on your home loan can help narrow your property search to just the homes that you can actually afford, ruling out the ones you can’t.
“Knowing how much you can borrow settles one uncertainty in a first home buyer’s search, leaving more energy and time to devote to identifying that dream home,”
“Pre-approval allows first home buyers to potentially negotiate a shorter settlement period for any purchase. If the vendor wants a quick sale and the first home buyer has most of the paperwork done for their finance, a lower sales price could be negotiated.”
2. Be consistent with your savings
If you keep throwing your savings and budgeting off course, there’s a domino effect.
The whole property search will come undone when you lose sight of your savings strategy, so consistency is key.
3. Be clear about what you want
The general rule as a first time buyer is to know what kind of property you want and be proud of it: let your inner circle know about it, and importantly, let real estate agents know about it.
Buyers with a very clear picture of what they want – rooms, land, location, nearby facilities, price – can focus their own time, but also that of agents. When something comes up, real estate agents should be able to call you directly with the opportunity, which will let you focus on developing other opportunities.
Experienced real estate agents will often contact unsuccessful purchasers after a property is sold if a similar property comes up, so save agent mobile numbers so you know who they are when they call, and work more closely with them.
4. Inspect as many properties as you can
This is age-old advice, but sage advice nonetheless; it’s highly unlikely you’re going to purchase your first property on your first bid.
You need to understand the market, negotiation tactics, competition and your own limits. There are usually developed through experience: inspecting properties, talking with agents, and meeting those same agents multiple times across different properties.
5. The buying process
So you’ve made an offer to the vendor, or set the highest bid: What’s next? The purchase isn’t set in stone until the contracts are signed and exchanged. Until this point, you and the vendor have the option to pull out of the sale.
The rules and regulations around buying real estate in Australia differs from state to state. To make sure you’re not caught out, it’s a good idea to get a conveyancer on board to help you understand the process. For instance, there is a three days cooling-off period in Victoria. And at auction? There’s no cooling-off period at all.
For further information on purchasing your first home, contact us today on 0433 590 621 for free no obligation chat.
*This is general information and does not take into account your own personal financial circumstances, objectives or needs. You should consider this information in light of your own personal circumstances before making any investment decisions.