Buying a home can be a daunting experience, regardless of your home buying experience. The following tips can help make the house hunting experience a little more positive and rewarding.
How good are the local schools, shopping centres, public transport and other community facilities? Does it matter to you if your home is next to a commercial property or vacant block?
Make a List
You can save many hours and potential arguments if you make a list. Consider the features you MUST have in your new home, those you definitely don’t want and others you would prefer to have but are not essential.
Do your Homework
Use the internet to find neighbourhood information, sale and property information.
Seek Mortgage Pre-Approval
Talk to your bank or finance provider so you can get a full assessment of what you can borrow. If possible seek a pre-approval from your lender so when you do find the house of your dreams you won’t miss out while waiting for the paperwork to be finalised.
House hunting can be exhausting, especially when inspecting several homes in the one day. Be sure to wear comfortable clothing and shoes.
Buyer Enquiry Range
Instead of setting a fixed price, a price enquiry range is set in order to encourage negotiation.
What do I do?
Simply place an offer for what you believe is the right value, compared with other homes you have seen. Be prepared to negotiate. We suggest the middle of the range is a very good place to start. Simply submit your offer and our agent will do his or her level best to negotiate a deal agreeable to both parties.
In the past, it was only the sellers’ and agents’ opinions that mattered. Now it’s your turn. You have a simple way of negotiating your dream home which, previously, you would have missed.
Buying at Auction
If the house you want to buy is being sold by auction, it's important you understand exactly what is involved. Ask the agent for an indication of the likely price range the property will bring, to see if the price range is affordable and matches the amount indicated by your financial supplier.
Registering Your Interest
Once you decide the property could be suitable to you, it's important to register your interest with the company representative managing the sale. This ensures you can be contacted if the property is to be sold prior to auction. Max Brown Real Estate follow a strict procedure when selling prior to auction, so any offers received from prospective purchasers are treated fairly and with total confidentiality.
Preparing for Auction Day
A number of details should be attended to prior to the day of auction. It is especially advisable to check all sales documentation relating to the property. Simply ask Max Brown Real Estate for a Contract of Sale so you, and perhaps your solicitor or conveyancer, are aware of all relevant details.
Sometimes the sellers have some flexibility with the settlement date and other terms, so if they are not suitable, you should enquire.
Other areas that may require attention before the auction are;
*Checking on the availability of finance,
*Discussing the property with a builder or architect, and
*Having an estate agent assess the value of the property you presently own.
*If successful at the auction, you must sign the contract and pay the 10% deposit. This deposit can be paid by either a personal cheque or a bank cheque made payable to the agent.
Setting Your Limit
Think about what the property you're after is worth to you, and what you would pay so as not to miss the chance of owning it. Remember it may well be worth more to another buyer and you have to accept that.
Rules of Auction
It is important that you are aware of the rules of auction prior to the auction. Speak with your Max Brown Real contact for more information.
The "Passed In" Auction
If a property is "passed in" at auction, this means the reserve price has bot been reached. In most cases the owner, in consultation with the agent, will immediately set the asking price at the reserve figure. It is important to note that the highest bidder at the auction usually has the first and exclusive right of refusal to purchase the property at the reserve price.
The property is often sold by negotiation immediately following the auction. Alternatively, the highest bidder fails to make an offer which is acceptable to the vendor within a reasonable time after the auction, the agent will be free to seek offers from other parties that may be interested. So if you are interested in buying the property, you should ensure if possible, that you are the highest bidder.