Before You Make an Offer
7 things worth checking while you have the time
One advantage of a more balanced property market is the opportunity to do something buyers have not always felt they could do:
Take a closer look before making an offer.
That does not mean waiting endlessly for the perfect property or trying to predict the bottom of the market.
It means using the time available to understand what you are buying, what it may really cost and whether it works for your finances and future plans.
Here are seven checks worth making.
1. Know your comfortable price |
There is a difference between the maximum amount you may be able to borrow and the amount you feel comfortable repaying.
Before negotiations begin, understand:
your likely borrowing capacity,
repayments at different purchase prices,
purchasing costs,
how much cash you would like to have remaining after settlement, and
what repayments may look like if rates change.
Our finance team can model different scenarios so you have a clear personal limit before emotion enters the negotiation.
2. Compare recent sales |
The asking price is a starting point, not necessarily a measure of value.
Look at recent sales of similar properties in the surrounding area.
Consider land size, condition, number of bedrooms, parking, renovations and exact location.
The aim is not to become a property valuer overnight. It is to understand enough about the local market to recognise when a property appears reasonably priced for its characteristics.
3. Look beyond the fresh paint |
A beautifully presented property can still have expensive problems.
Depending on the property, professional building and pest inspections may identify defects, safety issues, signs of termites or repairs that deserve further investigation.
An inspection may provide reassurance, identify future expenses or give you information to discuss with your solicitor or conveyancer before proceeding.
4. If it is strata, investigate the building too |
When you purchase an apartment, townhouse or other strata property, you are not only considering the individual home.
You may also share responsibility for the wider building or complex. A strata report can provide information about matters such as:
levies and available funds,
planned works,
building defects,
insurance,
disputes or legal matters,
meeting records, and
by-laws.
A beautiful apartment can feel very different once you understand what is happening beyond the front door.
5. Read the contract before you fall in love |
Contracts can contain information about the property, title and terms of the sale that deserve professional review.
Ask your solicitor or conveyancer to explain anything you do not understand before you sign or bid.
Property rules, cooling off periods and the ability to make conditional offers vary depending on the state, territory and method of sale.
Knowing the rules before negotiations begin can make the process feel far less daunting.
6. Calculate life after settlement |
Buying the property is only the beginning.
Consider the ongoing costs as well:
council rates
strata levies where relevant
insurance
maintenance
utilities
commuting
renovations or immediate improvements
Then ask a simple question:
Will we still have enough room in the budget to enjoy living here?
A property that fits within a loan approval may still feel uncomfortable if it leaves too little flexibility for the rest of your life.
7. Remember what you were looking for |
After weeks of inspections, it is surprisingly easy to start compromising simply because you’d like the search to end.
Return to the reasons you began looking.
What matters most?
More space?
A shorter commute?
Schools?
A quieter location?
Investment fundamentals?
Less maintenance?
A slower market may give you the opportunity to wait for a property that genuinely supports the goal behind the purchase.
Finance Matters takeaway |
More time does not guarantee a bargain.
It can give you something equally valuable: the opportunity to investigate, compare, calculate and make a more considered decision.
Use that time well.
The goal is not simply to secure a property.
It is to feel confident that the property and the finance make sense together.
Found a property you are considering?
Reach out to our finance team before making an offer so we can help you understand the repayments, purchasing costs and comfortable price range.
If you'd like help with assessing your personal and financial situation, as well as comparing the loans in the market to see if you're truly getting the right deal for you, then call Bob Malpass now on 0431 862 136, email bob@westhomeloans.com.au
