Step by Step

Before you start calling up real estate agents, stop for a moment and make an action plan. It is best to go through the process logically and be prepared for each step of the process. Remember that, more than anything, buying a house is a big financial investment. You have to make sure that your time, energy and hard-earned money are spent wisely.

> Know Your Budget

Taking into consideration all your present expenses and your current lifestyle, determine exactly how much you can spend for a new house or how much you are capable of paying comfortably. Know that aside from the actual cost of the house, other incidental costs are likely to be incurred. If your funds are limited, you can increase this by either selling a property that you own or, if you're eligible, get a mortgage. Several financial institutions provide mortgages and can present you with reasonable payment options. Normally a large deposit would give you a better repayment deal

> Do Your Research

You know that a beautiful house is being sold, do you immediately make an offer to buy? Of course not! There are other aspects that need to be considered before you make a bid. It's not just the house that is important, it's the entire living environment. When you purchase a house, you're not just moving in a property, you'll be part of a new neighborhood. Your children will study in the nearby school and be friends with the local kids. Your family will be a new addition to the community. All these must be taken into account.

Although it is good to have identified a specific house, it is wise to have several choices. Take time to see these houses and visit these more than once. View the houses at daytime and at nighttime. Look at it from all angles, take note of the surroundings, examine the interiors and evaluate the state of repairs. Try to find out if the house is part of a chain . Ask questions. Be firm yet polite. Do not let yourself be pressured into making a decision.

> State Your Offer / Buy It

When you have decided on a property, you can finally make an offer . You may want to match the seller's asking price or try to negotiate for a lower deal. This is all up to you and will depend on your personal valuation of the property. Bear in mind though, that you're probably not the only one vying for it.

When you both agree on the price, ensure that this is put in writing. State, however, that you're not legally bound to proceed until you are satisfied with the results of the survey. To prevent from being gazumped , demand that the property be put off the market, and make a deposit to show the sincerity of your intentions.

> Professional Surveys and Valuations

Then, an independent survey and valuation will be done on the property of choice. Usually, three surveys are prepared during the entire process. First is the buyers valuation , followed by the homebuyers report. These two are informal surveys designed to give you and, if applicable, your lender an initial idea on the value of the property. The last and most important survey is the full structural survey , done by an independent contractor who prepares a comprehensive and oftentimes lengthy report that identifies the repairs needed and the actual structural condition of the house.

> Transfer Of Ownership

When you are fully satisfied with the survey report, you now prepare for conveyancing. Actually, conveyancing starts the minute your formal offer was made and accepted. This process usually involves meetings with solicitors. Solicitors will help transfer the ownership of the said property to you. They will prepare all the necessary legal documentation and advise you of required taxes and duties.

After all the legal procedures have been accomplished and the necessary fees have been paid, the house keys will be turned over to you thus completing the process. You're ready to move in. Congratulations. You now own a house.

Back to Top