You walked into an amazing property, felt the sun on your face from the north-facing deck, chosen the kids’ bedrooms, and planned where you’d put your coffee machine on the kitchen bench. Now all that’s left is to actually buy the place.
Before you put in an offer, there are a few important steps you need to take to ensure your dream home doesn’t turn into a nightmare. Here’s our checklist for what to do once you find a property you want to buy:
1. Confirm your finance
If you need a mortgage to purchase the house, it’s time to call your mortgage broker or lender and check that you’re able to get the place. You’ll need to give them the details about the house and they’ll let you know if you have the go-ahead to put in an offer.
Sometimes, they might not be willing to lend on certain properties or will want more information. They may also place certain conditions on a sale.
2. Check the title
You can have your lawyer check your title, or find it yourself. On the property’s title, you’ll be able to see who the owner is, where the boundaries are, if the property has any covenants or easements, and the type of property it is (freehold, leasehold, etc).
Carefully examining the title could bring to light information that might impact what you’re willing to pay for the property.
3. Conduct a second inspection
Return to the house and go through it one final time, noting features and issues on a checklist. Are there any maintenance issues you’ll need to fix immediately? It’s vital you check the six most important features:
- Roof
- Plumbing
- Electricity
- Foundations and piles
- Wall linings
- Exterior walls
At least three of these key items should not need replacing. If more than three need work, then you might struggle to get insurance.
You can see an excellent checklist for inspecting a home at Property Toolbox.
4. Research ongoing costs
Servicing the mortgage is only one of the new financial responsibilities you’ll have. You’ll also have rates to deal with, as well as insurance. Check with your council and your insurance company for the exact figures.
Are there other ongoing costs to consider, such as body corporate fees or parking? Does the house have high-maintenance features like a swimming pool? Consider all these costs when you’re planning your budget to make sure you’ve factored everything in.
Once you’ve done these four items and you’re satisfied the house is still suitable, then it’s time to make your offer. If you’re looking for a new home and want some advice to get you through the front door, then contact me today for a free no-obligation chat about what we can do for you.
