Steps To Buying A House In Melbourne
Posted by Rebekah Hutton on Fri, Aug 2019
Buying a house is not something that can be done lightly, it takes extensive research, time and effort, not to mention cash, to find the perfect property for sale. However, these next steps should make the process of ‘how to buy a house’ a little bit easier for you.
Step 1: Begin your research
As soon as you begin to think about buying a home start researching the local property market where you are interested in buying a house. This includes the medium selling prices, recently sold properties, property values, the most common method of sale, the average number of days on the market, the number of homes for sale currently listed in that area and if house prices are exceeding asking prices. Before you even consider buying a house, you should be totally familiar with the market, housing trends and familiarised yourself with all the real estate terminology.
For all the answers on everything you need to know from buying, stamp duty, finance, first home buyer information and more please visit our FAQ page.
Step 2: Determine your budget
It’s no secret that buying a house costs money, you’ll need to evaluate all your finances, forecast your plans in the years ahead and determine the likelihood of what you can afford to repay when buying a home. Then from this analysis you can work out how much you’ll need to borrow.
Step 3: Get finance pre-approval
You should get prequalified and preapproved for a mortgage before you buy a home. This will provide a sense of security on the house price you can afford. To do this you’ll need to engage with a lender or a mortgage broker and provide them with some information such as your income, bank statements, expenses, any debts, employment information etc. The lender will then review all this and determine how much they are prepared to lend to you for buying a home. Educate yourself on the different types of home loans available and shop around for the best interest rate you can achieve.
For more information please visit our finance FAQ’s section here.
Or head to the finance section of our website for assistance or home loan calculators.
Step 4: Utilise a Real Estate Agent
A Real Estate Agent can be a useful resource when buying a home. They have local area knowledge and can provide insight into home valuation, a house price, current homes for sale, including off market or upcoming real estate for sale. Best of all there are no real estate fees when you use a real estate agent and their service when buying a home.
Step 5: Find your new home
Once you find a house to buy within your house price range, it’s important to check all the details of the property. Take your time to ensure the plumbing, electrics, water and gas are all working. Ask the real estate agent if there is an active body corporate or covenant and ask to see the section 32. At this stage, you may want to arrange a building inspection, pest inspection, or alike. Ensure you are happy with the property and you have a clear house price in mind that you are willing to pay.
If the property’s sale method is private sale, work with the real estate agent to negotiate a fair price based on the realistic market property value, other real estate for sale in the area, and comparable properties that have recently sold.
If the property’s sale method is via auction you will be required to attend the auction and bid with a property price you are willing to pay. If you are the highest bidder and within the range the seller is prepared to sell for you will win the auction and purchase the home.
For more information on the process involved during an auction, follow this link.
Step 6: Conveyancing and stamp duty
You are required to arrange conveyancing which is the legal transfer of a property title from one person to another when you buy a house. This specialist service usually costs around $800 – $1500.
For more information on conveyancing, click here.
Conveyancing does not cover stamp duty, which you will also be required to pay at this stage. When you buy a house, you will usually need to pay a State government fee known as “stamp duty”. Limited exemptions and concessions may apply in some cases. We can advise you about this. You can also see current and detailed information at www.sro.vic.gov.au. The amount of stamp duty is determined by the house price of the property together with any concession that you may be entitled to.
For more information on stamp duty, click here.
Step 7: Arrange a home inspection
Prior to settlement from buying a home, you are entitled to arrange a home inspection with the real estate agent, to ensure the home is in the same condition it was in when you bought it.
Step 8: Settlement
Settlement is the day the title of ownership changes and the property is finally yours. In Victoria it is quite common to agree on a 30, 60- or 90-day settlement, with 60 days being the most popular. Congratulations, you are now a homeowner! Enjoy!
For more information on settlement, follow this link.
If you’re ready to take these steps and buy a home, why not start researching today, we have plenty of real estate for sale at a house price that suits you.
Take a look at our current homes for sale here.