Useful tips for buying a house Guide to buying a house
Buying a new home can be a daunting experience whether you are a first home buyer or an existing home owner. Here we provide home buyers with some tips on buying a new house.
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Searching for your new house
The first thing you will need to do when buying a new house is to do a little research on the local property market in the area in which you are interested in buying. Check the real estate advertisements in the local papers and look through all the local real estate agents. Inspect as many homes as you can within your price range. Some experts recommend inspecting between 10 and 20 houses before making any decisions however this may not always be practical. But just remember, the more houses you inspect, the better idea you will have about any particular property's value.
Finding the right house
When you find the right house, ask the real estate agent for the contract and refer it to your solicitor or conveyancer. They should check the contract for any special conditions that may apply with regard to the sale of the property.
You should also conduct at least two inspections. You will notice a lot more about the condition of the house on a second visit. Also, inspect the house at different times. This will give you a broader indication of the neighbourhood with regard to traffic, noise and other aspects of the local area.
Benefits of buying a house privately
Most people will buy their house through a real estate agent as most sellers engage a real estate agent to help sell their property. However, there are advantages for both buyer and seller with a private sale. You can generally save thousands of dollars on the price of a house that you buy privately because the seller will generally sell it at a reduced price as they are not paying commissions to real estate agents.
Legal and loan tips
When you have decided on the house you want to buy, you will need to settle on a purchase price. You will usually negotiate this with the real estate agent who will take your offer back to the vendor selling the property. If you can agree on a price, then you can pay a non-binding holding deposit.
Your next step is to have your solicitor go over the contract in detail and organise inspections of the property. These inspections should include a building inspection and a pest inspection.
You will also have to advise your lender of the purchase. If you are using a mortgage broker, you will advise them and they will notify the lender. The lender will have to approve the property and when this has been finalised; your solicitor will exchange contracts with the vendor.
Your solicitor or conveyancer will keep you advised on the progress of the purchase and they will advise you of what you will need to do next. This will include paying deposits etc. Just prior to settlement, you will conduct a final inspection of the property to ensure that everything is in order and that nothing has been taken that should be included with the property as outlined in the contract. Following this, you will be advised of the settlement and you will be able to pick up your key from the real estate agent.
Checklist before moving in
There are many things to do before you move into your new home. We've compiled a list below of some of the things that you will need to consider prior to moving into your new house.
- Arrange power, gas and phone connections.
- Book a removalist once you have a firm settlement date.
- Notify your change of address to RTA, insurance companies and other relevant organisations. You can do this simply through the Post Office.
- Arrange building and home and contents insurance.