Are you thinking about making an offer for a new property?
Congratulations! Buying a new house is an exciting — but often stressful — process.
Before you go ahead and make an offer, it’s crucial that you do as much research and preparation as possible to help make the process go smoothly.
By organizing your finances, budget, and doing your research, you can hopefully have a stress-free purchasing process.
Use this handy checklist to put you in the best position before you make an offer on a property.
1. Double-Check Your Budget
If you’re ready to make an offer, it’s likely that you’ve got a good understanding of how much you can afford to spend — and perhaps even a pre-approval letter stating the mortgage rates for which you are eligible.
Factor in additional fees such as taxes, legal fees, and insurance alongside the purchase price of the property. This budgeting will help make sure your offer fits in with your original budgeting and price guidelines, as you don’t want to overspend. You certainly want to spend your money wisely. However, suppose your money is insufficient, and you need help financing a home, in that case, you have several options, such as an adjustable-rate mortgage, fixed-rate loans, and various types of financing that provide you with multiple options so you can still have stability after purchasing your new property.
2. Research Your Potential New Property
In today’s digital world, it’s easy to find out everything you need to know about your new address. It will be useful for you to know how much similar properties in the area cost to strengthen your negotiating position. If possible, try to find out how much the seller purchased the property for (particularly if it as in recent years), and why they’re looking to sell.
Don’t forget to use Google News search to double-check that there’s no troubling news about the house you intend to purchase.
3. Research the local area
The same goes for the local area — you don’t want to find out horror stories only after you move in! Check local newspapers online to make sure there are no hidden surprises about the area where you’ll be residing.
By searching online, you should also be able to find information about average house prices for the area, schools, amenities, as well as crime rates.
4. Check Utility Costs
Don’t forget, the mortgage isn’t the only monthly cost you’ll have to pay, so make sure you’re aware of the other costs associated with the property before you put in an offer. Budget for taxes, utilities, and water in the area so you don’t find yourself being stretched too far.
5. Have Back-Up Options
It can be difficult to let go once you’ve got your heart set on a particular property, but there are many reasons it may not end up happening. Whether it’s due to cost, higher bidders, or the seller pulling out, sometimes it doesn’t work out, so have backup properties to hand. This preparation will mean that in the event the sale doesn’t go through, you don’t find yourself back at square one!
6. Understand the Process That Lies Ahead
Once you make your offer, things start to move quickly — so it’s best to be prepared. Discuss what other steps you will need to take with your agent, and take some time to look into fees, any repairs the property needs, and legal services. Find local agents by searching by location, such as conveyancing in Northcote, to find services near you.
Buying a new home is an exciting prospect, but it’s always best to be prepared before you take the plunge and make an offer. With these handy reminders, you’ll be well-prepared to make an offer in confidence.