First Home Buyer? try not to act like one!

First Home Buyer

As a First Home Buyer It can be hard to “beat the crowd” in the current market - This makes for a frustrating experience.

Buying a first home is momentous in any person’s life. There’s the obvious excitement;  and there is a commitment. There are a few things that as a first home buyer you can do to save time and be taken seriously in the negotiation and purchase process.

Firstly, have your finance pre approved, there is nothing worse than winning a tough negotiation only to discover you can’t pay for the property. It’s a waste of everyone’s time.

Be aware of the banks requirements - will they need a valuation? do they need a signed contract to complete the finance? how long will the preapproval and unconditional approval take? - know the difference.

Buy in your budget, once finance is preapproved you can target property that you know you can afford to buy. It may not be the dream property but it’s what your budget says you afford. Be realistic.

Be ready to exchange, have a solicitor pre engaged, have the deposit available either cash or a bank guarantee, already have your advisors picked and prewarned, so they can have you signed up and be ready to go when you give them the nod. This all saves precious time in a fast paced negotiation.

Be prepared for the extra costs associated with purchasing and know when they are required to be paid. Such things as building & pest reports, strata management reviews, stamp duty, solicitors’ fees, council rates adjustment, and insurance are few additional costs to be aware of. They will add a few thousand dollars to the purchase price.

Know what grants are available, there are a number of government incentives to help first home buyers get into the market. But not all grants are available for all purchasers. So do your research and find out what you can apply for, it may just give you the edge you need.

Be reasonable in your offers and negotiations, low ball offers or over allowance for small repair items undermines your respect in the negotiations. In competitive markets an agent may just leave you out of the conversation and deal with more reasonable purchasers.

Know your values and negotiate to win, a deal will only happen if both parties agree. You need to enable the vendor to move on, so find out why they are selling and what is their motivation and use that to your advantage.