Lots of young people are considering taking the next big step in their property journeys – buying their very own first home. If this is you, then no double you’re probably feeling very excited, but maybe also a little overwhelmed. It can be a time charged with emotion so it’s important to do your research, stay in control and have a plan.
We thought it might help if we answered a few of the common questions and concerns we are asked to help you along the way to buying your very first home.
Tips for buying your first home:
Do some research on the areas you like and think you can afford. Look at some of the property websites like realestate.com, reiwa.com or domain.com. Using the mapping feature is also very handy to see various locations. Also, the sold pages can be helpful.
#2: Contact a broker or bank
Speak to a finance broker or bank to get a clearer picture of what you can borrow and what initiatives are available to you. For example, you may be eligible for reduced stamp duty or Keystart style loans. You may also want to arrange a pre-approval letter for when you are inspecting properties. This is a formal letter indicating the amount a lender may loan you for a home.
You might also want to consider using an online calculator to calculate what you could borrow. However it’s vital to know that these are just estimates, so it’s always best you don’t rely on that information when making an offer, and instead rely on information provided to you by your broker and the bank.
#3: Do a drive by
Once you know how much money the bank will lend you, take another look at the areas you like now that you are confident with your budget. Maybe take a drive around your chosen areas to get a feel for the place.
#4: Attend home opens
Attend some home openings or make an appointment to view homes you like and ones that suit your budget with the listing sales agent. Asking questions about what has sold in the area will help you get a feel for the market as well.
#5: Make a written offer
Once you have found a property you like and the price is fair, make an offer in writing. A written offer is important to show the seller you are genuine; you could also provide a copy of your pre approval letter to help strengthen your offer. Remember, if you love the property be sure to make a friendly offer. Low offers can sometimes offend the seller and set your negotiation off in the wrong direction.
If you don’t hear back from the agent within a reasonable time (usually a day or two) with an acceptance or counter offer from the seller and you spot another home you like, you can make an offer on the second property. However, be sure to contact the sales agent of the first property yourself to advise you are withdrawing your offer before you write the offer on the new property.
#7: Keep calm and carry on
Buying your first home is a very emotional time. Try to stay calm and remember if you miss out on a home because another buyer got in before you, there will always be another house that you will fall in love with.