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House Hunting Tips. Free Reports.
Some things to bear in mind as you search for your new property purchase.
Get a FREE REPORT on the home you wish to buy!
The Residex report which is valued $75 is provided free if you contact us. The report provides the value of the property which will prove to be within the range of price the property is eventually sold.
it also provides details of the suburb and recent comparable sales. This is a valuable resource to have
while you are negotiating your purchase or sale.
There is also a handy E booklet for home buyers that you can obtain by contacting us. Get to a phone now to lodge your request for this excellent book.
Getting a pre-approval from a lender to establish your borrowing capacity.
The process to pre-approval is similar to applying for a loan after a purchase (i.e. the lender will investigate your ability to repay the loan you require and check your credit history. This is an important first step as it narrows down the search to the properties you can afford and also allows you to negotiate from a position of strength.
Vendor Finance is a great way of getting yourself into the property while waiting for your loan or sale to be completed. Generally, it is not a long term solution, it must provide the vendor with some advantage.
Using a buyer's agent.
The agent most often used by purchasers is the seller's agent. The seller's agent's loyalty should be with the seller, to get the best deal for him as the seller is paying the agent's commission. Therefore a buyer's agent is someone you can trust to negotiate on your behalf, and more importantly they are familiar with market conditions for the type of property which saves you the time looking at numerous properties to meet your requirements. They should have the market savvy to put a convincing proposal to the seller and his agent or bid on your behalf at an auction.
The buyer's agent can also obtain a property for you, which is not on the open market as they have more contacts with estate agents
Negotiating to get the best price for your new home.
First of all buying a property is a very emotional thing for everyone, so keeping your cool and letting the mind rather then your heart decide what you can afford is critical. Every $10,000 you reduce on your loan, say at 7.5% over 30 years, you save on interest alone over $10,000.
1. Set a limit. Start with the lowest offer and provide the seller an incentive,like you are willing to settle in 25 days, to give it serious consideration.
2. Find the sellers week point. talk to agents, neighbors, seller etc. often people will give a clue as to what will make them sell immediately, and the price.
3.Don't get pressured, instead you should state your offers with a final date and don't chase the seller or the agent. Say you already had to stretch to make the offer.
4.Be guided by the market, if it is a sellers market your leverage is limited, keep your thoughts to yourself, ie your maximum limit, about the location and features of the home.
Make sure its in writing
Do not take the seller's word or his agent's for any repairs to be done and have the building inspection report completed before EXCHANGE (i.e. make a satisfactory building report a condition of settlement). Make sure every item included with the property is written into the contract. Verbal agreements are not worth caring for; it does not matter how trust worthy they sound, the contract always overrides any verbal agreements.
Getting a rate and locking it in.
This is particularly important for fixed interest rates, when rates are moving up; some lenders allow the rates can be fixed on the day of approval by paying a premium of say 0.15% of the loan. Otherwise the rate is fixed on the day of settlement.
Cooling off period
It is generally 5 days from exchange in NSW, although you may have done your due diligence you may have overlooked some aspect of your purchase. Worse still that nearby property is to be developed into some commercial service provider which will bring both heavy traffic and pedestrians in to the street/area.
It always a good idea to talk to neighbors and council to find out what is planned for in the area. You may decide to cut your losses and cancel the deal in the five days.
Holding deposit money:
The agent generally holds the deposit in his trust a/c on exchange of contract, this may be 42 days in NSW or more depending on any delays. You can insist that the funds be held in a fixed deposit. So that interest is shared between you and the vendor. Bear in mind that deposit is generally 10 % of the price of the property but you can negotiate a lower amount such as 5 %.
Disclaimer: The information contained herein is for the benefits of Sydney Mortgage plus Pty Ltd clients. However your future financial situation and interest rate movements can affect the strategy, therefore you must obtain independent financial advice. This company takes no responsibility or accepts liability for any adverse outcome as a result of using these methods. Terms, conditions, fees and charges apply to each of these loans, for further details contact Samuel Chacko.
Mortgage Broker providing low doc home loan, refinance home loan, new home loans, construction home loan, vacant land loan, first home owners grant, bridging finance for homes, car loans, commercial low doc loans, no doc commercial loans, business loan