The Ultimate First Home Buyer Checklist
Buying your first home is an exciting milestone, but it can also be overwhelming (and just a little stressful)!
With so many things to consider and steps to take it's important to have a clear plan of action.
So we’ve put together a comprehensive first home buyer checklist to help you make an informed and confident decision.
Let’s get started!
Determine your budget.
Before you even start house-hunting, the first thing to do is determine how much you’ve got to spend.
While free online calculators can be a great guide to working out your borrowing power based on your income, they don’t have the ability to completely consider your financial position.
It’s super important to factor in everything, including debts and expenses, your deposit amount, stamp duty, lenders mortgage insurance, legal fees and ongoing property costs like council rates, utility bills, maintenance and upkeep.
And don’t forget discretionary spending - are you willing to borrow to your limit and live like a pauper just to scrape together a mortgage repayment every month, or do you need some flexibility built in to enjoy things like eating out, seeing a show or the odd holiday?
In today’s rapidly inflating economy, it’s also incredibly important to factor in rising interest rates to make sure you are prepared (and able) to service your loan into the future.
All of these things will help you determine your maximum purchase price and avoid over-extending yourself financially.
Once you have a clear idea of your budget, you can move on to the next step.
Get pre-approved.
Once you’ve got a budget in mind, contact a few banks or lenders to see, realistically, what they will happily fork out to help you buy a home.
If that seems like a daunting task, or you simply don’t have the time, consider working with a mortgage broker who can do the leg-work for you and to help find the best rates and terms.
Not only will you then have a clear idea of how much you can borrow (so you can begin looking at homes knowing how much you have to spend), having pre-approval also puts you ahead of the crowd by making you stand out to sellers as a serious buyer.
Hire an expert.
A good real estate agent is worth their weight in gold when it comes to finding properties that meet your needs and your budget.
Because they have tools, resources and industry knowledge at their fingertips, they can guide you through the process, help you make informed decisions and negotiate the best price for you.
Not only that, they often have networks to help find properties that aren’t even listed yet, giving you a better chance at securing something without having to beat a baying crowd.
But how do you choose the best agent?
Speak to several, and pick one that not only makes you feel comfortable, but that is knowledgeable about the neighbourhoods you're interested in, is experienced in the industry and that comes with excellent reviews on platforms like Rate My Agent, Australia’s #1 real estate agent ratings website.
Do your research.
Once you’ve determined your budget and your pre-approval’s in the bag, it’s time to get researching.
Where do you want to live? Would you prefer inner-city, or closer to the beach? What can you afford in those areas?
Consider factors like proximity to work, shops and schools, public transport, local amenities - even the community vibe.
And what about home features - how many bedrooms and bathrooms do you need? Do you need a backyard?
Take the time to research different neighbourhoods, check out the kind of properties that are available in those areas and consider which ones might be the best fit for your lifestyle and budget.
This will help you narrow down your search and find the right home in the right location.
Attend open houses and view properties.
Now you’ve got a shortlist of areas, and the kinds of homes you’d consider living in, it’s time to attend some open inspections and view some properties in person.
This will give you a better sense of the different homes' layout, condition and overall ambiance.
And while it’s easy for excitement to take over, don’t let good first-impressions blind your decision making.
It’s important to stay grounded, and use these visits to take note of any potential issues or repairs that might cause problems down the track. Because a small oversight today, could be an expensive headache tomorrow.
Get that home checked out.
You’ve found the perfect home - that fits your budget, is perfectly located and suits your lifestyle - and you love it. Great!
But whatever you do, now’s not the time to rush in.
Before making any kind of offer, it’s crucial to have a professional give it a once over.
Book a home inspector to check it out for any potential issues.
They’ll help identify the things you might not see - like structural damage, pest infestations or faulty electrical systems - that will help you avoid any costly surprises (and a whole lot of issues) in the long run.
Not only that - if they do find any problems, but you still love the home, it can help you negotiate a lower price with the seller, or include repairs in the contract.
Review the contract.
So the building inspector’s happy, the vendor’s happy and you’re happy. You’ve put in an offer, and it’s been provisionally accepted. Now what?
It’s contract time.
When it comes to reviewing the contract of sale, it's incredibly important that you fully understand everything that’s in there before you sign on the dotted line. Why? Because it’s legally binding.
The problem is, most contracts read like a medical journal - full of jargon that’s difficult to understand.
So getting a professional conveyancer on board is always your best bet. They know what to look for, can explain any tricky parts in simple terms and help make sense of all the clauses - plus, they’ll help ensure that your interests are protected.
With that in mind, here are the 6 most critical parts of a contract to consider:
✔ The property description: The contract should clearly and accurately describe the property you are purchasing, including its boundaries, any inclusions (e.g., appliances, fixtures) and exclusions (e.g., furniture, artwork, pizza ovens), plus any easements that might exist.
✔ Purchase price and payment terms: The agreed purchase price should be accurately stated, including any deposit requirements and agreed payment terms.
✔ Conditions of sale: The contract should specify any conditions that must be fulfilled before the sale can go ahead, such as fixing any major issues, securing finance and passing pest inspections. It is also highly recommended to include a condition within the contract that allows you a pre-purchase inspection (during the week prior to settlement), to ensure the home has been kept in the same condition as when you first signed the contract.
✔ Settlement date: The contract should include a settlement date, which is the date on which you’ll take ownership of the property and pay any money remaining you still owe.
✔ Title and ownership: The contract should confirm that the seller has clear title to the property, and that there are no encumbrances (like an existing mortgage) that could stop you taking ownership of the property.
✔ Legal fees and costs: The contract should clearly outline any legal fees and costs associated with the sale, such as stamp duty and conveyancing fees.
Discuss each element with your conveyancer, and ask as many questions as you like at this stage - because once that contract’s signed, it’s full steam ahead.
Make sure you’re covered.
Once you’re confident the sale is going ahead, it’s time to talk insurance.
As with any big purchase, it pays to protect it. Which is why home and contents insurance for any new property is a must.
Home and contents insurance protects a home against damage or loss due to events like fire, storms and theft, and gives you complete peace-of-mind that if disaster strikes, you’re covered.
Also covering other structures on the property like sheds, fences and pools, a good policy also includes your belongings and any additional living expenses if you can't stay in your home due to damage.
The final countdown.
Like anything, there are some final steps you need to take to get you over the line - even after the contract is signed.
Mostly, it’s legal stuff - like processing the transfer of ownership and finalising bank transfers - which your conveyancer will handle.
But it pays to be organised to make sure you're in full control when settlement day arrives.
Here’s a few things you can get done prior to settlement, that will make sure everything runs smoothy:
✔ If you’re currently renting, notify your Property Manager or Landlord of your intention to move and book a cleaner so that’s all ready to go when you move
✔ Book a removalist if you need one, ensuring they're scheduled to arrive at your new property after settlement is due to occur
✔ Organise your travel plans if you are coming from interstate or overseas
✔ Book disconnection & reconnection of utilities, including gas, electricity, including phones, internet & pay TV
✔ Arrange mail redirection & begin updating your new address for things like mail, subscriptions, statements, electoral rolls, insurance, council rates, schools etc.
✔ Ensure your new home and contents insurance is set to begin from the time of settlement (and cancel any old insurance!)
✔ Register any pets with your new council
✔ Conduct that (hopefully contracted!) final walk-through if your new property to make sure that it’s in the same condition as when you made your offer, and that any contractually agreed-upon repairs have been completed.
Settlement is done and dusted.
Settlement day is here.
All the final paperwork is signed, your bank has transferred the funds and you’ve received the keys to your new home - so congratulations!
You did it, and now it’s time to get on and enjoy your new home!
Buying your first home is a big deal.
Not only is it one of the biggest - and most expensive - purchases you’ll probably ever make, it’s also a steep learning curve that takes you on an (often complex) journey that requires patience and composure.
But if you remember to take your time, do thorough research and engage the professionals throughout the process, you can be confident that you’re taking a great step towards securing you and your family’s future for years to come.
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And if you’d like some expert guidance and support? We’re ready and waiting to answer all your questions!
If you’re just getting started, or looking for more valuable property buying, selling or investing tips, tricks and hints, check out these other handy articles on our blog:
And for all the very best property buying, selling or investing advice, why not connect with us - We Connect Property are your local property market specialists with over 21 years’ experience in buying, selling and managing property in southern Adelaide - check out our 5 star Google reviews here to find out what our happy clients think!
Give us a call on 0403 799 983 today, or drop a line to sales@weconnectproperty.com.au - we can’t wait to chat!
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DISCLAIMER: All recommendations made by We Connect Property are general in nature and not to be relied upon as legal or financial advice. To ensure accuracy, we always strongly recommend seeking independent, professional advice tailored to your specific situation before making any investment or financial decisions.