What can buyers do to be prepared when buying homes?

Looking back, I can think of lots of things that I could have done better throughout the buying process. For example, when I first put in an offer, I wasn't pre-approved for finance, which meant that I missed out on what I thought was going to be my perfect first home. There are lots of things about buying homes that you won't necessarily know unless someone tells you, or you do your research. 

That's why, to help you be better prepared, I have put together this handy guide of what you as a buyer can do to be better prepared when buying a home.

Getting financial pre-approval from a bank is helpful in a number of different ways when you are buying a home. Firstly, it helps you to set your budget by letting you know exactly what you can afford. Personally, I have found myself being blinded by the features of a home and thinking that maybe I could stretch my budget a little further. However, pre-approval is a set-in-stone guide to exactly what you can safely afford.

It is all too common that home buyers leave shopping for a mortgage until after they find the place they want to buy, only for their dream home to go to another buyer who already has their finances sorted. Let my situation be an example! Pre-approval is relatively simple. You just need to arrange a meeting with your bank, mortgage broker, or finance provider who will assess your financial situation. They will then let you know exactly how much you can borrow. 

The best part is that this is a free and non-binding process – and when you go to inspections or make an offer, if you are pre-approved, sellers will see that you are a serious buyer. 

Next, once you are financially ready to start looking for a home, you should make sure that you do your research on the suburbs where you think you might like to live. I always like to start with a few key suburbs and look at things like average sale value and whether property prices are on the rise (this can be important for resale). Real estate agents and government websites can often assist with: 

· Distance from the CBD or your place of employment.

· The closest shops, hospitals, schools, and amenities.

· A census summary including suburb demographics.

· Average weekly rent (this will be useful if you later plan on renting out your home).

Lastly, it is a great idea if you can speak to some locals in the area. I find that this is the best way to get a true and honest insight into what life in the suburb is like. 

Once you have created a shortlist of suburbs you would like to live in, you are ready to start looking at homes! For me, this is the fun part. It is great going from place to place, imagining what your life will look like, and where your furniture will go.

Remember when conducting inspections, it pays to be courteous and punctual. If you can't make an appointment, make sure to cancel in advance or if you are going to be late, a simple phone call to let them know you are on your way and will be there soon. Real estate agents are your direct connection to the seller, being polite and respectful to an agent means they will be more likely to help when you find the property you would like to try and buy. Relationships with real estate agents can be long-lasting and beneficial across your buying life. 

When you are ready to make an offer, you can submit this either on an expression of interest or formal Contract of Sale. You can either sit down with the agent and fill out the forms together or they can be emailed to you to fill out later on. Check whether your offer is conditional or unconditional. If you don't yet have financial pre-approved, you should make an offer that is conditional pending finance. This is less attractive to a seller than an unconditional offer. If you submit an unconditional offer be sure to read all the paperwork carefully because once you sign your offer, and the Seller accepts, your offer is binding.

It’s also important to ask your real estate agent what happens when there are multiple offers on the property you are trying to purchase. This process is slightly different and a lot of Buyers have been caught out by not making their best and final offer for the property they love.  

Once your offer has been accepted, you will need to understand how the contract process works. That was definitely the most uncertain part for me the first time I purchased. Sometimes your contract will have conditional clauses for finance and a building inspection. It will also outline when settlement will take place: usually, this will be within 30-90 days from the Contract Date. 

Typically a contract needs to include: 

· The names of all parties

· The property details

· The agreed purchase price

· Any terms and conditions of sale

· Any special inclusions of the sale

· The agreed date of settlement

Most people choose a Lawyer or Conveyancer to manage the sale process. They will perform all the necessary checks during the contractual process and assist with settlement when the time arrives. You will need to make sure you pay your deposit for the property to the real estate agent, attend the building inspection and obtain insurance the following business day from when the Contract is signed by the Vendor.  

On the day of settlement, the home will finally be deemed yours! 

As you can see, there's lots to think about and lots that Buyers can do to be prepared when it comes to buying homes. Making sure you consider all these steps means that the process doesn't need to be stressful. Taking time to do the work before you start means you hopefully won't hit roadblocks along the way. 

I find that buying homes can be very enjoyable, and I am sure you will too.