Buying a property is a great investment of time, money and energy, so take a look at the following if you want to make the process smoother, faster and even enjoyable!
1. Clear Objectives
Knowing what you want is the first big first step towards finding it. It is important to take a moment and think it through: What kind of house and what in-built features? Which location? For what budget?
Location is usually one of the most important aspects people consider when deciding to buy. Although you shouldn’t let it dictate your choice, keep in mind that where you live can make a huge difference in how you live. How long is the commute? Are there any good schools in the neighbourhood? What about hospitals, shopping centres, parks? Based on your needs and expectations, you can narrow your search. Things are getting easier already!
The house
Do you need a big house to accommodate many people or maybe a small condo? Do you want a house that requires no extra-investment or would you like to personalize it? Do you expect a ‘smart home’ or are you happy to invest less and add features as the technology becomes more affordable? While some aspects can be optional, you should create a list of what you see as essential features (e.g., garage, garden, pool etc.).
The price
What you want can be influenced by what you can afford. Even if you take out a mortgage, it is important to spend that money wisely and keep in mind that a house usually requires extra-work once bought. A home can be for life and should be one of your main investments, so do your calculations in advance!
Consider factors such as commute to work, schools, shopping and entertainment when deciding.
2. Home hunting
Here is where the fun begins! First, you will need to create a list of properties you consider viewing. By having an agent with you the work gets a lot easier. They can offer you tools to reach the properties you might not have been able to find otherwise. For example, the MLS® (Multiple Listing Service®) System allows you to highly personalise your search, saving you time and energy. Sometimes, an agent has their own network of sales agents and can put you in touch with them.
Next, you’re on to viewing the houses. The viewing can be a mix of ups and downs for many potential buyers, but it’s part of the hunt. To avoid disappointment and generally unpleasant surprises, make a list of facts you need to know. Don’t feel shy to ask for all the details – if you don’t do it now you might be disappointed later. So, remember to ask about anything from home features you can’t go without to health and safety aspects (wiring, plumbing, foundation and any other technical aspects). A home inspection is always a good choice, but it is a wise move to get an idea about these aspects even before the official inspection.
3. Buying decision
Once you’ve made up your mind about a property, it gets pretty straight-forward: through your agent, you make an offer and the seller can either accept or reject it. If they accept it then they start the payment procedures.
Making an offer isn’t a very easy job though… It requires a lot of paper work and in-depth know-how when it comes to property transactions. This is why an agent will make your life easier at this stage. They are trained to understand how the buying process works and to be on your side.
The aspects you or your agent will consider are: the price you want to pay, expiration of the offer, purchase closing date and some other specific conditions, e.g., financing, selling your current property, confirmation of the title property, technical home inspection etc.
Bear in mind that a deposit is usually enclosed with the offer and your agent can advise on that as well.
Offer accepted means half of the stress is gone and you can start planning which room belongs to whom! However, remember that at this point you are bound to the seller as much as they are to you. In case one of you changes their mind, suing or loss of the deposit is at stake. Ensure that you are aware of all conditions and contract terms before putting down your signature.
At this point, you will also need a proof of mortgage insurance. Just before the house is handed in to you, the lawyers will transfer the title of property to you. Your lawyer will also ensure that the money is transferred into a trust account and then to the seller and they will address any other relevant aspects that cannot be easily dealt with once the selling process ended (e.g., land ownership).
Your agent can provide you with a lawyer through their legal services partners, so don’t worry if you don’t have your own. Now it’s time to sit back and celebrate the ownership of your soon-to-be home!
4. Potential extra-costs
Buying a house doesn’t mean paying only the seller. There are additional costs that you need to consider. Such extra-costs are legal fees, your real estate agent fees, as well as appraisal fees. Survey and land transfer costs should also be considered. Finally, mortgage-related costs, such as your broker’s fees, mortgage insurance or interest adjustment. Although it might look like a lot, sparing on them now can cost you more later on: without a sound experience in the real estate business, you have no guarantee that you are getting the property you are paying for.
