WHAT SHOULD YOU DO BEFORE YOU EVEN START LOOKING AT HOUSES?
Nearly all our major purchases happen this way: We get an idea about a big exciting thing we want. We start researching…and realise that we don’t know enough about the thing. Never mind the effort it will take to acquire the thing.
So it goes when buying a house. There’s a lot to do before you attend inspections, open homes and start making offers.
Smart buyers prepare first! Presenting…
Top 5 Things smart buyers do to prepare for the property market:
(1) Finance readiness - If your finances are a mess, if your taxes haven’t been done for the past 2 years, if you haven’t done some mortgage broker research then you’re not ready. You may not even know how much you can borrow. Awareness is the first step in the right direction…so read a few books, get control of your home spending, pay down any outstanding debts and stick to a pretty strict budget for a few months while you complete the 4 items listed below.
(2) Understanding true ownership costs - is an essential step in the process and for some people, might be a deal breaker. But ultimately, it’s good to understand what’s involved not only in the purchase costs (conveyancing fees, stamp duty, home insurance) but then also the ongoing costs of home ownership (council rates, water rates, maintenance and upkeep). All this can be achieved with a few hours of research: phone calls, checking business and council websites and asking friends about their experience if they’ve bought in the same area and for referrals.
(3) Your 5/10/20-year needs - what’s the ultimate purpose of this property? Is it just for now (5-10) or forever (15-25)? Do you need to be near good schools, on a cul-de-sac with parking or in a unit near transport? Really try to take yourself into the future in this house and imagine where you’re headed in life. That will tell you where to focus your search and on what.
(4) Research, research, research - we touched on research in (2) but this is a different type of research…now that we have a handle on your finances and goals, it’s time to actually research areas and actual houses! This is the fun nitty-gritty of the search that might feel like you’re getting closer to Doing The Thing - Cue Dopamine. This is usually where people start the process before laying the ground work, but now that you’re clear on what you want, this process has better context.
(5) Setting realistic expectations - this process might take time or it might happen quite quickly. Once you start attending open homes you might be bombarded with all kinds of emotions including excitement, disappointment, disillusionment, disgust (at other buyers or real estate agents) - it’s a rollercoaster, alright. Important to remember that in the housing market, there is no “them”. There’s just people, doing what people do.
Last bit of advice: Don’t wait too long in Prepare Mode. Preparation is not the same as Procrastination, it’s about making sure that you’re confident to proceed.
You can be sure that things are not going to go exactly as you expect - life’s not fair, no one said it was. But at least you’ve now done the leg-work to know more than you did before. You’ll learn even more along the way.
So that’s basically it - you’re ready, now get out there and get at it!
