September 16, 2013
1. Get your budget in order
Whether you’re saving a deposit for a home or you’re ready to buy now, a budget is a great tool for finding out where your spending leaks’ are and how you can save more money. Every person can benefit from doing a simple budget. The more you know about your incomings and outgoings, the more control you have over your finances.
2. Obtain finance approval
Right now there are lots of buyers in the market who are making offers on properties, only to find out they can’t get the finance. The seller thinks they’ve sold their property, and discover two weeks later that the contract has crashed. Always be well prepared by having your finance in place, know your maximum & comfortable limit, the estimated repayments, and get all the paperwork out of the way so you can focus solely on purchasing your dream.
3. By prepared to adapt to a different situation
If you miss out at your first auction or you miss out on an Offer, be prepared to put that behind you and move on. It may mean a different loan scenario or a different Lender – be prepared for change. Many times it’s heard “I’m glad I missed out on the first property, as the one I’ve been successful with is better”.
4. Conduct a thorough inspection
Most people know that they should get abuilding and pest inspection completed before handing over hundreds of thousands of dollars for a property, but there are a number of other checks you should also consider. An electrical inspection, pool fencing compliance checks, smoke alarm compliance checks and flood reports may also be necessary. Look up at ceiling for cracks, check outside structural walls, even to taking off your shoes to check floorboard variances.
5. Get a handle on prices
To get a true indication of a property’s worth, let Mortgage Choice Port Melbourne prepare a Comparable Sales Analysis to determine the market value of the home, to make sure you’re not paying too much. Spend time at auctions and reading property sales results in the Sunday media. If making an Offer on a property, make sure you know the market range by having Mortgage Choice Port Melbourne arrange a valuation, and do your own research
6. Know your place in the market
Is it a buyer’s or a seller’s market? Currently there are more buyers in the market place than properties for sale – this has the effect of pushing up the sales results. Therefore it is more important to do your research by regularly attending auctions and reading the local newspapers for sales results. Spring is usually a time when more properties are on the market but this also means more buyers. The cooler months are often great buying times.
7. Dig for information
Once you’ve found the property you want, start talking to the real estate agent. The selling agent is on the seller’s side, not yours, but that doesn’t mean they can’t help you. They want to sell the property for their client and you can use this to your advantage – ask the agent why they’re selling, how long the property has been on the market and if any offers have been received, and use this information to help you craft a compelling offer. And don’t be afraid to ask questions.
8. Don’t be pigeon-held by friends’ advice:
Listen to your friends’ advice but always keep in mind that the experts, such as Mortgage Choice Port Melbourne, compare loans and details all day every day.
9. Back up your offer
If you’re making an offer that is below the owner’s expectations, make sure you provide information about why you believe the offer is genuine. A Comparative Sales Report from Mortgage Choice Port Melbourne will assist with your knowledge of similar properties. You can always make the deal sound more attractive to the seller by offering different settlement terms. Ensure that you have your Pre Approval in place and Mortgage Choice Port Melbourne have calculated your maximum purchase & borrowing power.
10. Be prepared to walk away
If you make an offer and the vendor isn’t prepared to budge on price, tell the selling agent that you’re interested in buying the property if and when the vendor is willing to come closer to the market value. The agent might call you if the seller starts to soften their expectations.