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First Home Buyers Guide - Part 3: Buying the Property

By Coposit
12/14/2023

For first-time home buyers, the process of purchasing a property can be a long one. Knowing the key milestones in this process helps break down this long journey into easy steps. Coposit’s guides for first-time home buyers can help you during the research and decision-making process of finding your dream property. Once you have decided on your first home, it’s time to start the purchasing process.

Understanding Property Valuations

When it comes to understanding the initial value of an off-the-plan property, prospective homeowners can approach a real estate agent for an appraisal.

The real estate agent will then look at a number of qualifiers to get an approximation of the property valuation. These will include such things as:

  • Size of the property
  • Number and type of rooms
  • Fixtures and fittings
  • Location
  • Ease of access, such as good vehicle access and a garage
  • Planning and restrictions and local council zoning

These factors mean it is also important to get a building inspection when buying a new home prior to the settlement, even with a brand-new property.

The property valuation will then be compared against the current real estate market. This will be impacted by the recent sales in the area and other market conditions to give an accurate valuation of your new home, even before it is built.

Researching Local Market Prices & Sales

Conduct thorough research of the local market, including recent sales data.

Researching local property market prices and sales is a crucial part of valuations. It can require a systematic approach to gathering data. But there are a number of resources that can help you speed up the process:

Local Real Estate Agencies

Visit or call real estate agents in the area of interest. They often have firsthand knowledge of recent sales and can provide valuable insights into the current market trends.

Market Reports

Local newspapers, magazines, and dedicated property reports can offer data on recent sales and market trends. Some institutions or real estate agencies publish quarterly or annual market reports in print and online.

Asking the Community

Speak to neighbours, community members, or local business owners. They may provide informal insights about the local market or recent sales they're aware of.

Hiring an Appraiser

Hiring a professional appraiser can give you a detailed report on the value of a specific property and comparable sales in the area.

Local Government Sources

There are a number of state guides to buying off-the-plan property that have updated data on market trends and housing values.

Negotiating An Offer

Once you find your dream property, it’s time to negotiate an offer. If you intend to look for an off-the-plan property, one of the main points of negotiating an offer is to get a firm completion date (also known as a ‘sunset clause’) in writing from the developer before you finalise the offer. It is also recommended that you seek independent legal advice before signing a contract to go over all the details.

Securing Your Mortgage

Securing your mortgage is an essential part of the process.

Securing a new home mortgage involves a combination of financial preparation, research, and understanding of the lending process. For some help for first-time buyers, here's a brief overview of how to secure a home mortgage:

Research the Lender

At this stage, it is important to choose a lender you trust and who can provide you with the type of loan that fits your budget and property needs. Look at reviews, use compare sites and go over the quotes before making an application.

Submit a Mortgage Application

Once you've chosen a lender, it's time to submit a formal mortgage application. You'll need to provide various documents, including proof of income, credit history, and personal identification, as well as details of the off-the-plan property you intend to buy.

Home Appraisal

Lenders will then arrange for an appraisal to determine the value of the home you're buying. This ensures they don't lend more than the home's current value.

Closing

Once you have been successfully approved, you'll move to the closing process, where you'll sign the final documents. This is where you will pay the deposit and closing costs.

To find a mortgage broker to make this process easier, speak to a Coposit broker partner and contact us to get started.

Whether it's your first time or you’re a seasoned pro, we’re here to help. Read our blogs for more information on how to buy your first off-the-plan home.

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