Buying a house is not like buying some groceries from the store. One has to consider several factors before deciding to purchase the property. It is more than the house that matters to you. At Nest Realty, we help clients make the best buying decisions by looking at all the essential facts before purchasing a property. We are a trusted real estate company that walks with you throughout the entire process of buying properties.
Our agents are committed and devoted to providing you with all the necessary guidance, help, and advice to make your dream of owning a house come true. We have realized that most home buyers have the same questions about buying houses. In this comprehensive guide, we have responded to the most frequently asked questions that will help ease your decision-making.
What questions should I ask the agent when buying a home?
In the quest to understand and learn more about the house, ask some of these questions from the agent.
- Why is the owner selling?
- What is the minimum price the seller will accept?
- What is included in the sale?
- How has the value of the property changed in the last few years?
- Tell me more about the neighbourhood?
- How long have the owners of the property lived here?
- Any local plans that could affect homeowners here?
- How long has the property been in the market?
- Is the property listed, and if so, what grade is it?
- How many times has the hose exchanged hands?
- How much are the council taxes and utility bills in the area?
- Have significant works been conducted on the property?
- How old is the property?
What are the steps to buying a home?
The process of buying a house is accessible as an easy one with the following basic steps.
- Start by doing your research as early as possible
- Check your credit score
- Determine the much you can afford
- Choose a lender and get prequalified and preapproved for a mortgage
- Choose the right real estate agent
- Start the process of searching for a home
- Make an offer
- Get a home appraisal and a home inspection
- Get the home’s insurance
- Conduct a final walkthrough
- Close the sale and get the keys to your new home.
What are the different ways to buy a home?
There are various methods of buying a house that you can use.
- Auction: The property is sold to the highest bidder in public bidding.
- Tender: Involves submitting a formal offer in response to the vendor’s tender price, which the vendor can accept or reject
- Private sale/ treaty: The homeowner sets a price they would like to sell their property, and then their real estate agents negotiate with the buyer to achieve a sale.
- Expression of interest: The property, in this case, is not always advertised. Prospective buyers send a presentation of interest document by a specific date.
- Price by negotiation: Here, the cost of the property is not given, and the seller and the seller get into private talks.
- Offers/no price: Involve giving offers of the house without any price reference
What are the costs of buying a property?
As a first-time buyer, you are probably are excited about owning your new home. However, buying a house comes with several hidden costs that you must include in your budget.
- Inspection costs: especially if you buy a house that another person previously owned. Inspection is essential as it will help you know if the place is good.
- Stamp duty fees: These are taxes applied on property documents and states.
- Finance and deposit: This is usually 10-20% of the overall cost of the property
- Mortgage application fees
- Moving costs: Once you have successfully bought the house, you need to budget for moving expenses, including packing, hiring a moving truck, and all other activities involved with the actual moving.
- Legal and conveyancing costs
- Council tax rates and strata fees
- Building insurance costs
What is the process of applying for a mortgage?
A mortgage application may be a tricky process, especially if you do not start early enough. Forgetting even the slightest piece of information may be enough reason for the lending institution to deny your application. Each bank has its home loan packages different from the other. However, the general guide on applying for a mortgage is as follows.
- Calculating the deposit: The deposit for most homes is between 5% to 20% of the total value of the property.
- Calculating your credit capacity: Lending institutions will only grant you the loan if they are satisfied with your credit score.
- Choose the best home loan package for you: Lending institutions offer several loan packages. You are at liberty to choose the one that best suits you.
- Apply for the loan: Actual loan application
- Formal loan approval and settlement
Due diligence is essential when you want to apply for a mortgage. Research different lending companies and their different packages, then compare the options before settling for a specific one. You will have to provide proof of your capacity to repay the loan, like payslips for those who are employed.
What factors do I have to consider before buying a house?
Buying a house is one of the most significant financial decisions you will ever make. Being that big of a deal, there are many vital factors you have to consider to ensure you forever enjoy your property, and you do not have any regrets.
Consider the following:
- Location: It is perhaps the most critical factor you will have to consider. A great location will always remain an asset despite future fluctuations in the real estate market. If you are working, you may also consider the distance to your workplace.
- The neighbourhood: Try and find out how safe the area is.
- Condition of the property
What are some of the benefits of buying a house?
Most first-time homebuyers have been asking about some of the benefits of buying and owning a home.
- Building your equity is the amount of the value of your property. As the market value of your home increases, your equity grows.
- Living security: Especially when compared to people living in rented apartments
- Ability to create your dream home as most landlords would not appreciate it when you renovate their property.
- More control over costs: Landlords can wake up one morning and decide to increase the rental prices. This may be very inconvenient, but you will be forced to abide by it.
- In the long term, it is cheaper compared to renting
- Tax advantages
- It is a solid investment
Why should I choose Nest Realty?
We are Perth’s exclusive residential and commercial real estate agents that you can trust. Asides from our genuine care, skills, and experience in the real estate market, partner with us today for the following reasons.
- Customized services: We appreciate that different customers have varying needs. We ensure all our clients’ needs are fully satisfied by customizing our services to suit everyone.
- We have proven marketing strategies: For homeowners who want to sell their property.
- Constant communication: We pride ourselves on maintaining continuous communication with our clients. Even though we are doing all the work for you, you will be updated on everything done.
- People first philosophy: ‘People before contracts.’ We appreciate building trust with our clients before signing the contracts.