Let's face it - very rarely can people afford to buy a home without borrowing money.
Further, there is no point spending time looking at houses with a view to purchase, until you know how much you are able to borrow.
Once you know this information, it makes looking for a house within your budget a LOT easier. Remember, stick to your limit - you don't want to over-commit and then find yourself in financial hardship.
The truth is, the cost of the house itself is not the only financial cost. Some of the additional costs you can expect to pay are:
We strongly recommend that before you actively look for your first or subsequent home, that you make an appointment with your finance broker, or bank, to determine your borrowing capacity and to establish the deposit required.
Believe it or not, this is a common question. The thought of selling your home before you have found your next home can seem risky at first - however the truth is, a huge number of home owners find the home they're looking for in a relatively short period of time.
Don't be afraid to sell your current home, before buying your next home. This means your financial arrangements will be taken care of, and you will have the freedom to bid at auction, or make an offer knowing you're in the optimum position to negotiate on price and the settlement period.
If you are worried you will miss out on your dream home, and decide to buy first, there are two important factors to keep in mind.
The property market is fluid - it will always fluctuate, so you need to be aware of the "type" of market that prevails at the time you're looking to buy a new home.
Being aware of the current market gives you an indication of what sort of properties are being sold, how quickly, and for how much. Each type of market has its own set of characteristics.
While the diagram explains the differences between a Buyers Market and a Sellers Market, a Balanced Market is exactly that - the number of properties for sale is about equal to the number of buyers; sellers will consider reasonable offers; prices are generally stable; properties sell within a reasonable time and a good number of prospective buyers see the property.
While there is no such thing as a bad time to sell your property, generally there are fewer properties for sale during the winter months. If your home reflects a warm homely environment, this may be as great time of the year to sell.
Buying and selling your home can be a daunting and scary experience on your own. Find a real estate agent who specialises in the area you want to live, and view the homes they're currently selling.
Although Kerry Davey Real Estate have the office base in Mindarie, we have experience and knowledge selling properties in all suburbs north of the Swan River in Perth.
Make a point of popping in to see us - explain the type of home you're looking for and give us an idea of what you can afford (what the Bank has pre-approved you for) and what your priorities are for your new home.
We are only too happy to act as your Buyers Agent, and find homes for you to inspect with a view to purchase.
We work very hard for our clients - they are our whole business. We look forward to establishing a strong professional relationship, and helping you to find the home of your dreams.
We make the paperwork side of things a breeze, and explain everything to you in full so you always have a full understanding of your commitments, obligations, responsibilities and options.
Most of our clients who have bought or sold through Kerry Davey Real Estate are still in regular contact with us - some even pop in just to say hello, or have a coffee and a chat.
We welcome these times - and look forward to meeting you soon.
Many home buyers become equipped with a wealth of knowledge during their property search, especially from research from the Internet.
The first step after deciding to buy a home is to make a list of what your requirements are in a new property, and what your plans are for the future. Ask yourself questions such as:
The most common considerations for honme buyers are:
Every buyer has a particular wish list, as a result of their own individual priorities. Keep in mind that the more specific your needs and requirements, the more difficult it can be to find your dream home.
It's a good idea to include an additional list - items you can add as improvements which are not immediately necessary (such as an established garden). Sometimes you find the perfect house, on the perfect block of land - but there is some work to do to get the house to the standard you would like. Use this to your negotiating advantage, and keep in mind that all homes are usually a "work in progress" as we continually improve and maintain.