KGI Realtor Guide To Buying A Property
Step by Step Home Buying Guide is your very own home buying tool that gives you access to everything you need to know about buying a home, from searching right through to settlement.
Finding The Right Property To Fit Your Needs
Searching for the right property may seem hard work but if you do your homework and take your time the whole thing will be a lot easier.
Buying a property is a big step involving a substantial long-term financial commitment, so think hard about what you can afford. You will need to consider the assets you have – like savings – as well as the money that’s coming in and going out.
Although it may reduce your buying options, you don’t want to commit to a mortgage and then realise you can’t afford some of the nicer things in life! It may sound obvious but take time to think of all the things you spend money on throughout the year, even without a mortgage.
What you’ll need
Know what you are looking for before you set out by researching thoroughly.
Use KGI Realtor to help you decide on areas you may like to live in. It’s a fantastic tool that lets you filter properties according to what you want.
You will need to consider what aspects of a property are most important to you:
- number of bedrooms / bathrooms.
- parking provisions.
- separate kitchen and dining room.
- private garden.
- how much time/money you may want to spend redecorating etc.
Tell your agent exactly what type of property you are looking for and the elements that you could possibly compromise on.
For most people buying a property the biggest ongoing cost is the mortgage – simply a loan secured against a property. You can’t sell the property without paying off the mortgage first and if you don’t keep up the repayments the lender can repossess the property.
It is vital that you secure a mortgage with a lender before starting the searching process. This way, when you find the right property, you will avoid being beaten to it by another buyer and you will also be in a much stronger negotiating position.
When you start viewing properties, you might like to take:
- A criteria checklist, to know what you’re looking for
- A camera to keep track of the properties you’ve seen
- A notepad to jot down pros and cons, the price and other distinctive features
Consider key players that will help you through the home buying process. These are usually a real estate agent, a conveyancer, a solicitor and your lender.
Once Your Perfect Property Is Found, Making An Offer.
Once you have found the property of your dreams, the next step is to make an offer. It is important to consider a variety of factors when choosing your price level in order to achieve the right deal for you. Take a step back to logically look at all the things that matter before making your offer.
First time buyers, buyers with no chain and buyers who have pre-arranged mortgages have a head start on most of the competition. If this is you, then make the agent and seller aware of this, as this can put you in a very favourable negotiating position, especially if the seller is in a chain. Be sure to check if they are in a hurry to sell or have been trying to sell for a long time. If so, they may be willing to accept a lower offer to make the sale. Sellers who are not in a hurry to move are more likely to hold out for a higher price.
Knowing your budget ceiling is crucial so decide your maximum limit from the start and stand firm. If the seller refuses to budge, you need to think very carefully if the property really is worth the extra money and of course, what you will have to live without over the long term. Do your homework and check what the property is truly worth. Whilst sold house prices can help give an idea of recent sales, it’s better to see what the competition is like now. If there are few similar properties for sale in the area, chances are the seller has the upper-hand. Also, if there are any faults or repair work required, use this to justify a lower offer. In tougher times when there are fewer buyers, sellers may be more willing to negotiate on price.
Once you make an offer make it clear that it’s subject to contract and a satisfactory survey.
We wish you the best of luck.
Offer Acceptation and Conveyancing
Once your offer has been accepted conveyancing will begin.
Here is our quick guide to understanding what a conveyancer does. They will:
- Obtain sellers’ responses to questions, such as who owns the boundaries, whether they have had any disputes with neighbours and what fixtures and fittings are included.
- Check copies of any guarantees on the property, details of planning permissions and building regulation certificates.
- Check the seller really is the owner of the property and prepare a Report on Title for you.
- Check local authority searches and plans for the local area.
- Pay stamp duty tax on the property.
- Arrange registration of title in your name.
Congratulations on your new purchase.