Ready to take the plunge and buy a new home?
Work out which is the right house for you using this six-step checklist.
1. Work out your budget. It has to be in range you can service comfortably.
If you haven't already done one, you can do a budget really easily with this handy 50-30-20 budgeting tool. Don't forget to think about stamp duty, fees and insurances. Pepper's range of mortgage calculators are another useful resource to work out how much your loan repayments might be, or which suburbs you should be exploring based on your budget.
To get started, try our home loan borrowing power tool to find out how much you could borrow. And when you 're ready, talk to a broker, or a lending specialist from our team and find out if you can get pre-approval for a home loan. They can help you through all the paper work, so you're ready to go.
2. Work out your personal checklist and then rate each property to see what comes out on top:
To make your house hunting easier, we have created an easy-to-use homebuyer checklist that you can download and take with you when shopping around for the perfect home.
3. Go to Open Homes as early as possible - and go prepared
Try to go to Open Homes as soon as you can. That way, if you're really keen on a place, you've got time to see it again. Plus you've got more time to do your research (it’s called ‘due diligence’), like reading all the necessary reports, conducting inspections, arranging your finance and getting the legal paperwork sorted.
While you’re there, the agent will ask you lots of things but make sure you ask the agent all the stuff you need to know:
- How long has it been on the market?
- What have nearby properties sold for recently?
- How much are the strata or council fees (if applicable)?
- Was it owner occupied or rented out?
- What schools is it zoned for?
- Have there been any alterations done?
- Are all alterations permitted and certified?
- Which fixtures will stay with the house?
- Where are the property boundaries?
- What is the current council valuation and what are the annual rates?
- Are they aware of any zoning restrictions?
- Are there any covenants or restrictions registered on the title?
- Are there any issues with property maintenance or damage that the agent knows about? (Such as collapsed drains or leaking)?
4. Take all the info away with you [yours and theirs] and go through it to make comparison lists of different places you look at.
When you've been through 10 open homes, it’s impossible to remember which one had the breakfast bar and which one had the ensuite. Salespeople normally have information for you take away from an open home. Make sure you take it.
Remember to take a pen so you can make your own notes about the property on your personal checklist – and about what the agent said in answer to your questions.
Then rank different places against your agreed checklist to make sure you’re thinking clearly and not getting carried away by a place that doesn’t have enough of what you need, or that is too much money.
Which one gets the biggest ticks?
5.When you like a place, you should still get a proper building inspection done on the:
- Building materials of the house
- Insulation and heating
- Roof, walls and ceilings
- Cracks or signs of erosion
- Electrical wiring
6. If it all looks good then work out what your range is to make an offer.
Don’t go over your budget. And don’t get disheartened if you miss out. There’s always another place out there for you.
It’s important not to go over your budget and depending on the circumstances, you might want to make a cheeky offer below the asking price to start off negotiations. Don’t get disheartened if your first offer is rejected, but make sure you stay firmly within your budget (or pre-approval range) and slowly meet the vendor in the middle. After all, they are on the market for a reason and may be a motivated seller – just don’t accept their first counter offer!
If negotiations stall, then it’s important to remember that there will be other properties entering the market soon, and there’s no harm in walking away.
Ready to go? Call us now on 13 73 77 and talk to one of our lending specialists about getting your loan sorted or browse online to learn more about our home loan options in market.
Like to know how much you could borrow with Pepper Money? Find out in a few simple steps using our borrowing power tool.
All applications are subject to Pepper's normal credit assessment and loan suitability criteria. Terms, conditions, fees and charges apply.
This article provides you with factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. Neither Pepper nor its related bodies, nor their directors, employees or agents accept any responsibility for loss or liability which may arise from accessing or reliance on any of the information contained in this article. For information about whether a Pepper loan may be suitable for you, call Pepper on 13 73 77 or speak to an accredited Pepper Money broker.