Navigating The Home Purchase Process

Here are 5 tips in navigating the home purchase process we found useful:

With sales increasing and low interest rates, you may be considering if now is the right time to buy. Before you get started it is important that you educate yourself about a property and understand how the home purchase process works.

1) Inspect the property – Firstly, if you think you have found your ideal property, do not be afraid to inspect it more than once and view every aspect of the property to make sure you are comfortable with it. For example, check inside all cupboards, especially under sinks to make sure there is no damage.

2) Negotiate the price – From here, when you are happy with the property and want to proceed with the purchase, the real estate agent will negotiate with you on the seller’s behalf, to come to an agreement on price and terms of the purchase.

Once a price and terms have been confirmed, you will be required to sign the contract to formalise the sale and during this time you will also need to decide on a settlement date, so make sure to work this date out prior to signing the contract.

3) Settlement date – As a general rule, try and allow at least thirty days between signing and settlement. However, if you are borrowing to purchase the property then you should allow at least forty-five days. Home loan finance approval is a common condition and most lenders now require at least four weeks to process a loan application. Termite clearances and building inspections are also reasonably common as general conditions on a contract to secure settlement.

4) Other Regulations – Another thing to keep in mind are the regulations in place that require dwellings to have two Residual Current Devices (RCDs) installed as electrical safety switches. There are also similar regulations around hard-wired smoke alarms, which must be present and must replace any common battery-operated smoke alarms. You should also consider using a settlement agent to help guide you through the settlement process. They ensure that you complete the necessary legal work including checks of the property title.

5) Final inspection – Prior to getting the keys to your new property it is essential that you conduct a final inspection. This provides you with the opportunity to ensure the property is in the same condition as stated in the contract.

Sourced: Reiwa.com.au