7 People You Need On Your Team When Buying a House
- Nov 25, 2015
- By Dim Mastoros
- In News
- Comments Off on 7 People You Need On Your Team When Buying a House
There’s no denying that buying a home, especially for the first time, is a huge decision. If you’ve done it before, you’ve got an idea of how it’s done.
If it’s your first purchase though then it pays to get some professional help.
You’ll mainly have to deal with 7 parties: the lender, the accountant, the conveyancer, the building inspector, the vendor, the real estate agent and the one who can help you work with all of them, the mortgage broker.
Have a read about how these professionals have a part to play when it comes to getting approved for a home loan and buying a property.
THE MORTGAGE BROKER
Mortgage brokers are home loan specialists who aren’t tied down to particular lenders or products. With their expertise and knowledge, you can potentially save hundreds of hours and thousands of dollars researching the right home loan and lender.
There are many reasons to use a mortgage broker, but the main benefits are that you can take advantage of their experience to make the process of buying a property smoother and faster.
On top of that, our services specifically are FREE.
Not only can brokers help you find the right home loan and lender for your situation but, they can liaise with the rest of the professionals on your property buying team and guide you through to settlement and beyond.
If you’re a first home buyer trying to get a home loan, brokers can check if you qualify for the first home owners grant (FHOG) If you do, they’ll help you prepare the necessary documents such as the contract of sale and your identification to make the grant application process easier.
Without a shadow of a doubt, unless you’re buying the place with cash, you’ll have to deal with a lender. Whether it’s a bank, a credit union, a building society and or specialist lender, actually getting an approval for a home loan is the key component in getting the ball rolling in buying your home.
You’ll also be spending the next 20 plus years paying back your mortgage to these guys so it pays to go with the lender that can offer you a mortgage with the right features for your needs at a competitive interest rate.
You’ll need to do your research carefully to pick the right home loan but, luckily, your broker can help you negotiate a great deal.
Your accountant will know your financials and will generally be able to tell you how to structure your finance and how much you can be spending on property. A good accountant will also be able to help you provide many of the supporting documentation when it comes time to apply. If you are purchasing an investment property, then your accountant will be able to advise you the best way to plan for tax time and making the most of your investment.
Don’t know a good accountant? That’s ok… we do!
A conveyancer or solicitor is a licensed and qualified professional who advises and provides information about the sale of a property, prepares the necessary settlement documentation and conducts the overall settlement process.
Here’s a list of some of the things a conveyancer does when you’re buying a property:
- Prepare and certify legal documents such as the Transfer of Land, the Stamp Duty Application Form and the Authority to Proceed to Settlement.
- Identify the property’s Certificate of Title.
- Take care of various rates and taxes. They’ll ensure there’s no outstanding water, council rates, government, strata levies and amounts owing on the property.
- Attend settlement on your behalf. Settlement is the process of transferring property from one owner to another and their job here is to ensure all documents are correct and handed over to the party holding the security after settlement.
The great thing about a solicitor is that they make sure that the terms of the contract of sale are on reasonable grounds, for example, the property being of an acceptable standard and not requiring immediate repairs.
The conveyancer will organise for a building inspection so if repairs are required, your conveyancer will speak about requiring the vendor to have these issues repaired or resolved before the contract of sale is signed, or negotiate for a reduced sale price.
The cost of a conveyancer varies greatly so if you want to determine the exact costs for their services, you can enquire directly at the source.
Don’t know any good conveyancers? That’s ok… we do!
THE BUILDING INSPECTOR
If you don’t want to buy a place only to find out that it’s infested with termites, it’s worth getting a building inspector to look over the property.
Not only will they cover pest inspections, they will also check out the plumbing and drainage, conditions of the windows and doors, all joinery, walls, driveways, fittings and fixtures and many more structural elements.
Building inspections are generally organised by your conveyancer or solicitor. If you use a mortgage broker, your broker will liaise with your conveyancer to get this undertaken properly with a reputable building inspector.
Before you even think about skipping building inspection, consider these three benefits:
- By conducting an inspection before buying a property, you’ll know in advance what problems you’ll be facing after you settle.
- You’ll be able to use the information to try and negotiate a lower price for the property.
- You can rely on a specialist’s advice about the major problems that may affect the property over time such as problems with structural timber, hidden mould or the condition and age of the equipment and fittings.
A building inspection on a standard four-bedroom home may cost around $400-$500 in a regional area and around $800-$1,000 in a metropolitan location. Note that this is only a general estimate.
You may also have to pay some additional charges for a building certificate and pest inspection. But we know some very good and affordable inspectors we can refer you to.
This may sound like a strange member to have on your “team” but it makes not to rub the vendor or seller of the property the wrong way with crazy demands for reparations to the property before the sale goes ahead or an unreasonable offer.
Keep in mind that just because they’re the vendor, they don’t have to necessarily be the owner of the property.
If the person who’s selling has a mortgage on the property, it means that the bank owns most or all of the property. If they want to sell the property, they can sell it but will require the bank’s permission.
Since solicitors will be involved in the home buying process, you’ll never be dealing with the vendor directly in most cases.
When you may be dealing with a vendor somewhat directly is if you’re currently renting and your landlord tells you that you’re planning to sell the property. In cases like that, they may actually offer to sell the property to you first.
The purchase/sale of the property will only go ahead once you and the vendor agree to the terms of the sale including the purchase price and both parties have signed the contract of sale.
THE REAL ESTATE AGENT
A real estate agent is a licensed professional who negotiates and arranges real estate sales for a commission. These guys always work for the vendor and not for you, so be careful not to get fooled by an agent who tends to stretch the truth a bit. It always pays to do you own research and do your due diligence.
A real estate agent can still be really helpful when you’re on the hunt for a home, that is, if you ask the right questions.
For more information on what you should be asking real estate agents, give us a call or send a message.