Every property buyer in Perth desires a home in the best location, a home that can command a great rental value, a home whose value greatly appreciates over time. Of course, buyers also expect the home to be priced very affordably.
Though the Perth property market is facing an oversupply of units and houses, and the mining boom is over and done with, the fact remains that home supply is drying up in many key Perth suburbs, and it seems a matter of time (maybe 12 months) before things start looking up. Many experts reckon that the market will soon start consolidating and that the downside risks are limited.
Therefore, the market, though currently down, is nicely balanced between buyers and sellers.
Here are 18 helpful tips that should help property buyers achieve their goals:
- Chances are that you will not get your dream home. Therefore, you must be flexible. If you compromise a little here and there, you will get something that is close to your desired property. If you are rigid, you may lose out.
- Don’t get emotional or hasty while making a financial decision. Study and analyze facts and figures, and sleep over it before making a decision.
- Do not immediately rush into the arms of an agent. Browse online and newspaper listings first. Of course, if you are from out of town, then you might like to appoint a buying agent.
- Speaking of agents – A buyer’s agent works for the buyer and a seller’s Agent works for the seller. Seller’s agents typically have a long list of properties, and too many unsuitable choices can end up confusing the buyer. Therefore, buyers must preferably work with a buyer’s agent.
- What is the development potential of your locality? Have the local authorities planned projects that can increase or lower the value of your property? Figure out these facts by visiting the relevant local authority office and by inquiring with unbiased experts.
- You might like to view the property at least 2-3 times at different times of the day. Check the condition of the house during the day, evening and night.
- Run a check on your to-be neighbors – are they social? Do they play loud music?
- Sure you know your credit score and your loan eligibility. But have you calculated expenses on insurance, agent fees, building & termite inspection fees, stamp duty, etc.? You must know how much you will spend on the property right down to the last penny – and you must budget for that final number.
- Know that prior to the purchase you have to declare the amount financed and the name of the financial institution. This is why it is important to obtain pre-approval. Pre-approval usually takes 21 days (or perhaps more) and therefore you must be ready with it before you make an offer. I can refer you to the perfect finance guru.
- Hire building and termite inspectors to inspect the electrical wiring, plumbing, foundation, termite damage potential, etc. Your agent will help you locate experienced inspectors.
- You can negotiate aggressively, but do not be too casual or frivolous. If you are not serious while negotiating, you may be considered as a person who is out to waste time. Be very factual while negotiating.
- Understanding seller psychology can help. Western Australia is a buyer’s market and if you can figure out that the seller is desperate to sell, you can land up on a nice bargain.
- Remember that property buyers in Western Australia have to work with a system that is legally referred to as ‘Offer and Acceptance’. If you make an offer, and if the seller accepts your offer, then it becomes part of the contract and it will be deemed that you have entered into a commitment to purchase the property. You cannot go back unless the seller does not fulfill a condition. The seller can accept, reject or make a counter-offer. If the seller makes a counter offer, it kills the original offer.
- You must summarize in writing all the key transaction-related verbal communication you have had with the agent or the seller.
- After both parties are in agreement, the settlement agent will take over the transaction and create the conveyancing documents/work. You have to pay up to $2,500 fees for this job. Some settlements agents are pricey, some come cheap. If you need one, let me know, mine is a Star!
- The settlement agent prepares a Transfer of Land document a minimum of two weeks before the settlement date. This document is handed over to your lender. It is the job of the settlement agent to contact all the parties and inform them about the venue, time and date of the settlement.
- Once the settlement process is over, the seller’s settlement informs the real estate agent, who then hands over the keys to you. Know this – your settlement agent must confirm that the settlement has happened. He should also send you a Statement of Adjustment that contains details about how the funds have moved between the different parties.
- Finally, and this is the most basic tip of them all – never ever wait for the market to bottom out. Perhaps only God can predict that. Buy when you feel the time is right because if you don’t, you may be missing out on a solid investment opportunity.
If you need help buying a home please let me know, I’m only too happy to help!