Buyer's Guide

Understanding The Buying Process

Buying a home is a big step, and there can be a lot to consider. Here, we will run through the typical buying process you will go through with your agent when purchasing your new dream house.

Sorting out your finances

The first step before buying a home is to ensure you have a deposit saved for your purchase. Most lenders will require you to have a deposit for your home loan. However, lenders typically have various loan products to borrow up to 100% of the property value if you qualify.

Pre-approved finance

Approach lenders to get finance pre-approval to understand what price range you can receive for your new home purchase.

Do your research

Explore some of your favorite neighborhoods that possibly suit your needs and, more importantly, your budget. You can do this online, where numerous property comparison sites will indicate the average sale price of houses, land, and units in that area. We also recommend visiting your chosen neighborhood at different times of the day. Does it still excite you early in the morning? Do you feel safe late at night? Can you see yourself living there comfortably?

If the answer is yes, and there are homes you are interested in, give their open houses a visit. Seeing them in person will provide you with a new perspective of the property while also allowing you to do a thorough inspection of the home.

How to make a formal offer

The best way to make a formal offer and avoid confusion is to make the offer in writing. In most situations, we will provide you with a contract to start the process, highlighting any sale contingencies. Once we have written it up, we will then present your offer to the sellers.

After your offer is accepted

If your offer is accepted and all parties have signed the contract, you will have to pay the required deposit.

Selecting an Attorney or Conveyancer

Typically, the seller will nominate an attorney moving forward.

Property purchase costs

Financial fees vary greatly, depending on such matters as what percentage of the property value that you will be borrowing, the amount of the loan, the amount of the purchase, and which bank is lending you the funds. By speaking to your local Harcourts agent, you can quickly ascertain approximate costs for your particular circumstances.

Possible expenses you may incur:

  • Bank fees.
  • Escrow charges may include legal searches (please consult your attorney or agent).
  • Home protection insurance.
  • Miscellaneous costs such as building inspection and revivalists.

Completing the purchase

Once escrow has closed, your bond attorneys will conclude the following

On settlement, your bond attorneys and conveyancing attorneys will conclude the following:

  • Monies, Guarantees
  • Transfer documentation

The attorney will lodge the transaction in the deeds office. This transaction will be registered within ten days, after which financial lenders will distribute monies accordingly.

Possession of the property usually occurs when escrow closes, although the seller and buyer can agree on a different date.

One of our team members will contact you to arrange a pre-escrow inspection. This walk-through is your opportunity to ensure all appliances at the property are in working order and that the property is as you recall from the time you signed the contract. If issues arise at this inspection, you should immediately postpone the closing until your attorney can address your concerns.

Although this intel may seem like a lot to take in, you must trust that your Harcourts agent will be there with you every step of the way, making sure you are happy with your purchase.