Steps to Buying your Home

Choose your Sales Consultant
Decide what you're looking for in a home
Work out finances
Determine overall costs involved
Understand current market conditions
Find the right home
Enter into an agreement to purchase
Finalise the legal requirements
Plan your move
Pre-settlement inspection
Settlement and possession day
 
Choose your Salesperson
A Real Estate Salesperson will help you find the home you are looking for. They will work with you to fill your key requirements for a home and will most importantly, save you time when looking.
 
The salesperson should clearly understand your needs and be someone you feel 100% comfortable with and the beauty is, you can get all this at no financial cost to you.

Decide what you are looking for in a home
There are many decisions to make when buying your home. It helps to have a clear idea of what you are looking for before you set out on a search for your home. For example, you need to consider what type of home and location you're interested in.
 
Below is a 'Wish List' to help you determine your ideal home. Prioritise these in terms of importance and separate "must have" from "would like to have".

    * Price Range
    * Location(s)
    * Number of Bedrooms
    * Garaging
    * Type of Property: (eg. villa, townhouse)
    * Section Size
    * View
    * Proximity to Schools
    * Proximity to Shops/Public transport
    * Special Needs
    * Other priorities

Work out finances
Now that you have a clear-cut idea of what you're looking for, it's time to work out how to finance your home. After all, buying a home is probably the single biggest investment you'll ever make in your life. This is why it's so important that you understand the cost of a mortgage.
 
Use our online Mortgage Calculator
 
Determine overall costs involved
When working out your finances, please consider that there are a number of extra expenses involved in buying a new home. Unfortunately, the price you pay for your home is not the only cost involved. Below is a list of additional expenses you can expect. Your Salesperson will be able to give you an estimate of these expenses.

    * Mortgage Application Fee
    * Property Valuation
    * Solicitors Fees/Legal Disbursements
    * Mortgage Insurance
    * Moving Expenses
    * Incidentals & Other Expenses
    * Property Inspection Reports
    * Builders Reports
    * LIM/PIM Reports (Land Information Memorandum/Project Information Memorandum)

Understand current market conditions
The housing market cycles between three main stages. These are listed and explained below:
 
Buyer's Market

    The number of homes on the market is greater than the number of buyers.
    Homes usually take longer to sell.
    Prices stabilise.

Seller's Market

    The number of buyers exceeds the number of homes on the market.
    Homes sell quicker.
    Prices generally increase.
    Sellers may receive offers from more than one buyer.

Balanced Market

    Number of homes for sale is basically equal to the number of buyers.
    Sellers will consider reasonable offers.
    Homes sell within reasonable time frames.
    Prices are generally stable.

Find the right home
You know how much your new home is likely to cost - and what's happening in the market. Now it's time to begin the search for the home that's right for you. It's easy to forget what you think of each home you view, especially after you've seen several. We suggest you keep a booklet with comments and a rating on each property you view.
 
Understand your rights
Read the consumer information provided by your real estate agent or from the Real Estate Agent's Authority.
 
Enter into an agreement to purchase
When you find the home you like at a price that you are able to afford, the next step is to make an Offer to Purchase. Your Salesperson will prepare this key document with you, making sure it covers all the details that are important to you.
 
Conditional vs an Unconditional Offer
What's the difference? An unconditional offer means the buyer is not placing any special conditions on the purchase. The seller has only to accept the offer for the property to be sold.
 
A conditional offer means that you have placed one or more special conditions on the purchase, such as 'subject to finance' or 'subject to your home selling'. The sale is not completed until these special conditions have been satisfied within the stated time period. In some cases a conditional offer will be rejected. For example, if the vendor does not wish to wait the extra time for the condition to be filled and another offer is received by the vendor.

Below are the five major elements of an offer:

    Price
    The price you offer may be different from the seller's asking price. This will depend on your opinion of the value of the property and how it suits your needs.

    Deposit
    The deposit shows your intent or good faith and will be applied against the purchase price once the sale is unconditional. Your Salesperson can provide         guidance on a suitable amount for a deposit - 10% is usually acceptable. The deposit is normally refundable if the sale does not become unconditional. However, once the agreement is unconditional, the deposit is non-refundable.
    
    Conditions
    These are requirements that must be met before the sale becomes unconditional. Conditions are always subject to a stated time and commonly include:
    - subject to you selling your home;
    - subject to you obtaining finance; or
    - subject to you obtaining a builders report; or
    - subject to obtaining a LIM Report (Land Information Memorandum).
    Your Salesperson will explain all the details relating to these conditions.
    
    Chattels
    Chattels are the items the seller will leave in the home and can include fixed floor coverings, blinds, curtains, dishwashers, stoves and television aerials. It is generally assumed that fixed chattels such as carpet, light fittings, a stove, a washing facility (usually a tub), and any appliances directly wired to the house, for example a waste master, ventilation system etc, are always included. However, other chattels that aren't fixed may be removed. Your Salesperson will know what these items are and will make sure you are fully aware of them.
    
    Settlement & Possession Day
    Generally, this is the day that the balance of the purchase price is paid to the vendor and yes, you finally receive the keys to your new home.

Finalise the legal requirements
After an offer has been accepted, your solicitor will need to check all the details of the title and prepare all the necessary documentation. You will then need to sign any mortgage documents and arrange for payment of the balance of the purchase price.

Plan your move
Moving your household can be a very busy time. A time when small (or even big) things can be easily forgotten. To prevent this from happening to you it is often helpful to write yourself a moving checklist.  To make planning your move easier, see our checklist for preparing to move.

Pre-settlement inspection
There is normally the option in your contract for you to have one pre-settlement inspection to ensure that the property is in the state at which you agreed to purchase it. This is particularly important for long settlements.
The pre-settlement inspection is an opportunity to see that any changes or damage, since contract day, are remedied by the seller.

Settlement and possession day
Congratulations! The day has come to move into your new home. We wish you and your family every happiness in the future.