Ten Tips on buying the right home, by Rachel Green.
Buying your own home is not something most of us do often. Subsequently we don't have much opportunity to learn from our mistakes. Based on my experiences of buying a new home, here are the tips that I'd follow next time. (By the way I'm not an expert on this. These are just my personal examples. Please do seek professional advice if you're buying).
- Get an independent structural engineer's or architect's report before you buy.
Know what you are buying. It may look solid and sound, but looks can be deceptive. Most of us do not look very carefully when we are at a home open or being shown around by a real estate agent or buyer. It is also easy for homeowners to cover up problems in the short term. An independent engineer's or architect's report will cost you money in the short term but may save you thousands in the long term or even save you from buying a disaster. And get a report from someone who isn't working for the real estate agent.
- Don't believe the real estate agent.
I don't say this to deliberately reflect badly on real estate agents. I say it because the job of most real estate agents is to sell the home on the part of the sellers. It's not to take care of the buyer. They will do what they can to leave a good impression of the home, the owners, and the value of the property. If they start talking you out of things such as the structural engineer's report, or suggesting that your concerns are a sleight on the Seller's character, or they very quickly cover parts of the house, or tell you something isn't necessary, be wary! Be suspicious! Stand up for your needs. Be assertive. Check it out.
- Don't believe the seller.
I'm beginning to sound negative! I know there are honest people out there. I know when we sold our home we tried to be really honest. However not all people are like this. People selling houses are like the real estate agents; they want to sell their home. For example, we were told by our seller that our septic system would be cleared out and the tree roots removed, before we bought it. We believed him. Stupid really. Once the home was sold what incentive did he have to do it? None! Was it done? No. Within about 4 weeks the toilet stopped working because of the tree roots. We paid a plumber to fix that. About 2 weeks later the kitchen sink stopped working! Another plumbing job. Guess who has to dig up the septic ? us!
- Know property values in the area.
There is a lot of variation in the prices people put on their homes. Check out several homes in the same area so that you know whether the house you like is correctly priced or not. If it's overpriced reduce your offer. If it?s the right price, play fair and give them the asking price.
- Use an independent settlement agent.
In Western Australia, it is generally a settlement agent who finalises the sales and purchases of properties. Elsewhere lawyers or other professionals may be involved. Several settlement agents work for the real estate agents who are selling properties. This has always confused me. How can the settlement agent who works for the person selling you the property also look after you? I prefer an independent settlement agent who doesn't work for any of the real estate agents involved.
- Know what's important for you.
Write out a list of the essential features of a home. Then put a second list of desirable features, i.e. those features you'd like the home to have but which you can cope without if you have to, or you can fix up once you've bought a place. Then let real estate agents have your list ? so they can notify you when places arise. Finally use your checklist to evaluate the homes.
- Put plenty of time aside.
Don't be impatient to find the right home immediately. Sometimes it can take months (or even years). It took us about 15 months to find a new place. At any one stage there will be fewer than 10% of homes on the market, and there might only be 1%. That's a lot of homes which may come up in the future.
- Check out the area.
We saw some nice homes. Some of them, though, were well away from all facilities. No post office boxes. No shops. No community organisations. No public transport. We were initially drawn to some of these homes and it wasn't until we did a practical evaluation of the area, that we realised they were in inconvenient places. The further you have to travel to the shops the more expensive it gets. Total reliance on a car, or isolation, can prove difficult in times of crisis. Check out the facilities in the area and not just the house.
- Don't put yourself into huge debt.
Huge debts are very anxiety provoking for most people. You can end up having to work so hard to pay the mortgage that you never get time to enjoy your home. Or you'll be forever watching the interest rates and finding that if they go up you have to sell up. Leave some money in the kitty when it's all over.
- Watch out for extra costs.
The cost of buying a home is not just in the cost of the home. The stamp duty on the home (in Western Australia, anyway) can add thousands on top of the cost. Then there are real estate agent's fees which add further thousands. Then removalist fees, settlement agent fees, land title search fees, money for new furniture, money for the connection of power and telephones ... the list is almost endless. In fact, I've heard it said that some people are millionaires because they have lived in the same home for years and saved thousands of dollars in the process. Ask yourself - do you really need to move home? Sometimes renovations are a much cheaper option! Sometimes just being thankful for what you have is even better.
Further information
"Happy not hassled. How to manage your emotions, meditate easily and find contentment.". Buying and selling houses and moving home is well known to be highly stressful. You will hear many tips on these two CDS on how to relax your mind and body, stay calm, de-stress and unwind. And you will be gently and easily guided through four different types of meditation of varying lengths from 5 minutes to 30 minutes. Stay calm and move house easily. Order Now!
Other relevant newsletters and tips are also available
There is also a website with lots more information on to help you avoid the pitfalls and maximise your success when buying houses, units, or other real estate in Western Australia. Click here to go to HomeBuyer WA.
May you find the house of your dreams at a price you can afford!
Best wishes,
Rachel Green
PO Box 344, Kelmscott, Western Australia 6991.
Phone: +61 8 9390 1188. Fax +61 8 9390 1199
E-mail:
Copyright 2006 RachelGreen.Com Pty Ltd
|
