4 Tips for Today’s Homebuyers

There is much to consider when buying a property. At Harcourts, we aim to make the process a little easier by providing you with tools and knowledge to make informed decisions.

For easy reading, we have included our 4 top tips for buying a home below, or you may wish to download a copy of our complete home buyers guide.

1. SORT OUT YOUR FINANCES
Before you start spending your weekends visiting hundreds of open homes, the very first step towards buying a property is to find out how much you can spend.

Whether you are looking at buying your first home or you are a seasoned pro, we can highly recommend working with an experienced mortgage broker to help sort out your finances.

A mortgage broker will help you create a budget to determine what you can realistically afford to spend on mortgage repayments and/or to start saving towards a house deposit.

There are huge differences between banks and their lending policies and a mortgage broker will do the research to ensure you work with a bank that will deliver you the best results. They will also negotiate discounted rates, higher cash contributions and know how to structure your lending to suit your lifestyle and achieve your goals.

2. DO YOUR RESEARCH
Once you have worked out your borrowing capacity, and perhaps sought pre-approval on your home loan, it is now time to get to know the market.

Start to look at neighbourhoods that would suit your needs and your budget.  A great place to start is online.  There are lots of property comparison websites, like www.oneroof.co.nz that will give you an indication of the average sale price of houses, lands, and units in the area.

Also, take a look at how the neighbourhood has fared over the last 5 to 10 years.  Have prices steadily increased, stabilised, or been in decline?  These figures can help you to determine if the property will be a good investment over the long-term.

Once you’ve found a location that fits your needs and fits in with your average price range, start to look at properties on the market.  Compare features, price, and land size. 

Give us a call so one of our buyer specialists can help you find the perfect property. We know the area we work in very well, and can also give you advice on what the neighbourhood is like, if any new infrastructure projects planned, and how prices have changed over the last few years.

3. INSPECT PROPERTIES
Time to get shopping! The more properties you view, the better understanding you will have of what you can get for your money.

It is important to know that if you turn up at an open home, the agent onsite will be the person assisting you further if you have any interest in that property. So, if you are wanting the experience of a buyer specialist ensure that you ask them to arrange viewings on your behalf.

At your initial viewing, focus on the dwelling’s structure, the neighbours and the location. Are there any damage from pests, poor construction, wet spots on walls or ceiling or cracks in the foundation?  If you’re not entirely sure what you’re seeing is cause for concern, and you are interested in the property, the best course of action is to enlist the services of a qualified building inspector.

While you are at the property, take a look at the neighbours on each adjoining border of the property for any clues you might not be comfortable with long term.  Are the neighbours’ yards neat and tidy, and would they reflect poorly on the area should you ever sell?  Do they have pets?  Are there dogs barking non-stop during the inspection or are animals roaming around?  Do you have a comfortable level of privacy?

Location means more than the general neighbourhood, take a look at the property’s exact location for things that may bother you long term, hurt re-sale value, or cause lifestyle issues.  Is the property on a busy road, next to a retail or commercial space, power lines?  Is the property on a flood plain?

These are just a few considerations to look into.  After inspecting a property, continue to do your due diligence.  Start to research any areas you’re still unsure of, and if you decide the home is the one for you, enlist the help of an independent building inspector to inspect the property and provide you with a building report of their assessment.

4. MAKING AN OFFER
Once you’ve found the perfect property for you, it is time to make an offer.  Depending on the type of sale, and even the region you live in, the process of making an offer can vary.  The only way to make a formal offer and avoid any confusion is to make your offer in writing. 

Common conditions of sale are:
– Finance
– A builder’s report
– A LIM report
– Sale of another property

Most of our clients choose to take a digital approach when preparing their offer. That means we can assist you regardless of whether you are at work or have commitments at home. It also makes it easy to send a copy of the contract to your lawyer before signing – we urge you to seek legal advice prior to signing any sale and purchase agreement.

The seller can accept your offer, reject it or counter sign it.  Counter signing usually occurs when the seller is not satisfied with the price and/or conditions offered and subsequently alters them.  The contract will be brought back to you for your consideration.

More information about the buying process can be found on…