How to prepare for buying a house

No mat­ter what the pro­ject ahead involves, pre­par­a­tion is always the key. This is so true when buy­ing a house as there are so many issues to under­stand and a range of ser­vice pro­viders to deal with. There are basic­ally 2 options avail­able to you as far as pre­par­a­tion goes:- 1.    You engage a Buy­ers Agent to guide you through the total pro­cess and pay a fee of between 1.5 / 2.0% of the pur­chase price. On a $800K prop­erty that’s $12-16K, or 2.    You decide to over­see the total pro­ject your­self. Tak­ing option 2 means Con­grat­u­la­tions, you have appoin­ted your­self as the “Pro­ject Manager”. Funny meme buying land

What is the role of the “Pro­ject Manager”?

A Pro­ject Man­ager needs to:-

  • Have a com­plete under­stand­ing of the pre­par­a­tion and       plan­ning required to imple­ment and carry out the project.
  • Set out a step by step plan so that you are always pre­pared for the next stage of the project.
  • Under­stand the roles played by the ser­vice pro­viders and how they inter­act with you and each other
  • Be pre­pared before any meet­ing with ser­vice pro­viders so there is no time waisted.

What should a detailed plan look like?

A detailed plan should con­sist of vari­ous steps that takes you from the begin­ning right through the total pro­cess. Lets look at the steps involved:-

Step 1 – Familiarisation

  • Famil­i­ar­ise your­self with the process
  • Under­stand what costs are involved
  • Receive tips on budgeting
  • Under­stand your legal oblig­a­tions. Make con­tact with a Law­yer or Conveyancer.

Step 2 — Preparation

Never go back­wards dur­ing the plan­ning stages. Always be pre­pared for the next step. ie. Don’t look for houses until your pre­par­a­tion is com­plete or you could be wast­ing time. Lis­ted below are all the issues to be addressed in the pre­par­a­tion stage:-

  • Pre­pare a list of all the demo­graph­ics required at your new location
  • List all the fea­tures required in your new home. ( Tip. Each part­ner to com­pile their own list and then com­pare & compromise. )
  • Pre­pare a budget show­ing income & expendit­ure for each month
  • Pre­pare a list of assets & liab­il­it­ies ie. State­ment of Position
  • Assemble all doc­u­ments required to sub­stan­ti­ate a loan application.
  • Start to famil­i­ar­ise your­self with the cost ana­lysis process.

At this point you would have a fair idea where you want to live. Now is the time to do some pre­lim­in­ary research for avail­ab­il­ity and prices of prop­er­ties in your chosen area. This can be car­ried out on the inter­net using the cri­teria you have estab­lished for your prop­erty & loc­a­tion needs.

Step 3 – Ser­vice Providershouse hunting in Seven Hills

There are 3 main ser­vice pro­viders that you will need to nego­ti­ate with. At the first meet­ing with each pro­vider it is essen­tial that noth­ing is assumed. There needs to be guidelines set on the expect­a­tions of both parties. Make sure that you obtain all the costs that you will incur from each Ser­vice Pro­vider both dir­ectly and indir­ectly. A sug­ges­ted order of con­tact would be:-

a. Mort­gage Broker or Lend­ing Institution

Armed with your Budget, State­ment of Pos­i­tion and Doc­u­ment­a­tion you are in an ideal pos­i­tion to make a appoint­ment with one of the above. Your primary aim here is to obtain a “Loan Approval in Prin­ciple” so that you have a good idea of how much fund­ing is avail­able to you. Final approval of the loan would be sub­ject to valuation.

b. Law­yer or Conveyancer

The legal require­ments in this trans­ac­tion is car­ried out by either of the above. Visit a chosen legal advisor to obtain an under­stand­ing of the legal pro­cess you need to go though dur­ing the pur­chase phase. Make sure this is car­ried out before any con­tracts are signed.

c. Real Estate AgentBear Grylls house hunting in Seven Hills NSW

Armed with the above inform­a­tion you are now in a great pos­i­tion to inspect prop­er­ties know­ing that:-

  • You are aware of the legal pro­cess as there is a con­tract to sign
  • You have a loan approved in principle
  • You are oper­at­ing within your budget which allows for some unforseen circumstances
  • You have determ­ined what amen­it­ies and ser­vices are required in your new neighbourhood.
  • You have com­piled a list of all that is required for your new home

This will ensure that you are well pre­pared when it comes to the nego­ti­ation stages .

Sum­mary

This is a gen­eral over­view on how to pre­pare for a new house. For a detailed account of these issues and links to vari­ous import­ant web sites down­load your Com­pli­ment­ary How to  buy a house Ebook now.

About 

Hav­ing spent 23 years in the Fin­an­cial Plan­ning Industry, Geof­frey was
look­ing for­ward to retire­ment. It was then that some friends asked him
how they should go about buy­ing a house.
This star­ted 3 years of research into all aspects of plan­ning and pre­par­a­tion when buy­ing real estate from an out­siders point of view.
All the research, hints & tips, ebooks and soft­ware pro­grams developed from this research are now avail­able at www.hobig.com.au
Con­tact Geof­frey dir­ect on 0448 843 214
or E: geoff@contentssecure.com
Home Buy­ers Inform­a­tion Guide

seven hills real estate agent NSW
Cnr Federal Road Prospect Highway Seven Hills NSW 2147 Australia