Firstly, congratulations on your decision to buy. Research shows that people who invest in property are more likely to build equity and wealth than those who choose not to. A family home is one of the best investments you will ever make, but with any investment, there are risks involved. You want to be fully prepared when buying a family home so that you can protect your investment and get the best value for money.
A family home is where you will raise children, form lasting memories with friends and family, build a nest egg through savings, and take refuge from a hectic work-life. The research shows that a house can become a part of you over time, so think long and hard about your decision to buy.
It is not easy to keep the emotion out of buying a family home, but thinking rationally will help you make the right choice for your individual circumstances. Once you are prepared with the following essential checklist, you can focus on finding your dream house and looking forward to all those life-changing experiences that happen within the four walls of your new family home.
A Practical Guide On Buying A Family Home:
Here is a practical home guide from an expert realtor:
1. Define Your Needs
What are you looking for in a family home? How big should it be, what type of property are you after, location, will this be an investment property or your primary residence? Take some time to think about the basics before starting your search. Is it your first house, will you have children soon, or are there other lifestyle factors that need to be considered?
2. Set A Budget And Stick To It
Getting pre-approved for a mortgage is the first step towards securing a property. Prices can vary considerably depending on location and demand, so it’s important to do your research and know your limits.
3. Check Your Finances
Be sure you can afford the repayments on a new mortgage as well as other outgoings such as rates, insurance, maintenance, and so on. Insurance is crucial since it will cover damages when things go wrong. Also, ensure you have legal counsel just in case claims are denied. You don’t want to find yourself struggling with finances or having to cut back on other areas of your life because you bought a house that’s more than you can afford.
4. Get Pre-Approved By Your Bank Or Mortgage Broker
This step is important because it means a real estate agent will know your financial situation before they show you the property. They won’t keep showing you houses that are way above your price range, which could save you time and heartache.
5. Work Out A Strategy For Your Search
You want to make sure you are ready to act when the perfect house comes onto the market. Determine how long your search is going to last, how many properties you will view each day or week, what type of property you are after, and any other restrictions you might have. Knowing your limits will prevent overwhelm and keep you focused on finding your dream home.
6. Know What You Can Negotiate On & What You Can’t
Can you negotiate acceptable settlement terms with the seller? Or what about getting them to pay for any stamp duty or redecoration costs? If you are buying a new build, you may be able to negotiate the purchase price of the property.
7. Receive Proper Guidance & Advice From Your Agent
Your agent should be showing you properties that are in your price range and will give you honest advice on how any negotiation process is going. You can always ask for another agent if the person you are dealing with is not providing this type of support. You will often find that working with a buyer’s agent means you pay no more than 3% commission plus taxes of the purchase price, so it can save you tens of thousands of dollars and still get great service.
8. Be Prepared To Walk Away From A Property That Doesn’t Feel Right
You will know when it’s time to walk away from a property that you don’t really want. Sometimes the right house for you is not actually on the market, so keep your eyes peeled and your ears open for other opportunities. There may be a reason why it isn’t being actively marketed by the agent. Be an astute buyer, and don’t rush into anything. If you feel like something about it doesn’t sit right, walk away!
9. Be Ready To Make An Offer As Soon As You Find The Right House For You
If you know how much you are prepared to pay for a property, make sure your offer is in that ballpark when it comes time to make an offer. It will come as no surprise that the first offer you make is unlikely to be accepted (unless it happens to fall right into the sweet spot of what they were prepared to accept).
10. Ready To Move? Know Your Next Steps!
Once the property has been put under contract and terms have been agreed on, you will need to lodge the deposit and sign the contract. Your solicitor or conveyancer should guide you through this process. They can make sure everything is in order for settlement day when it is all official.
The process of buying a family home is about making smart financial decisions and having the right support from your agent.
Registration and Transfer of Ownership
Before a property can be occupied, it needs to be registered, and a transfer of ownership document must be signed. The process of registering the transfer of ownership involves three main steps:
The seller signs a transfer of ownership document, making sure to record any conditions they have placed on the sale. Most owners require settlement within 21 days.
The buyer pays the balance of the purchase price to the seller and signs a transfer of ownership document, acknowledging what they have received.
The transfer of ownership document is then lodged with the local council, and a certificate of title is created. This process must be completed within 30 days of the transfer of ownership document being signed.
Moving into a family home can be one of the most exciting times in your life, as well as one of the most stressful. Make sure you have everything in place to secure your dream property and avoid any risk or unexpected surprises going forward by following these practical steps.