The right home
You have loan approval and an idea of where you want to live. You’ve made a list of your needs and wants in a house, and have begun to study the property market in the areas you like. The only way to find the right home now is to start looking! You’ll find houses listed for sale in newspapers, on the internet, in agents’ window displays and by driving around the areas you want to buy in. It may be that you fall in love with the first home you visit, but house hunting can typically be a long process and you will quickly know upon entering a house whether or not it is ‘the one’. When you do inspect a house, take a big notepad with you and write down everything about the house you like and dislike. It may be helpful to prepare a checklist of criteria beforehand so that you can more easily compare the properties you view. Some of the things to consider will include:
The investment perspective: Will it continue to increase in value, will it require high maintenance costs, does it have potential for improvements to suit your future needs? Is the location an improving area with good access to town centres or is it becoming rundown and neglected?
Your family’s lifestyle: If you are looking to buy in an area that is some distance from where you currently live, is public transport still readily available and how will the location effect traveling times to work or school? Are there any local shops within walking distance or a short drive away?
The position and situation: If you are buying a house with a view, what are the rules to protect it from being built out? If you are looking at closely built units or houses, will you have sufficient privacy from your neighbours, both physically and in terms of sound carrying over into your house?
The aspect and block: Will your house capture the sun in winter? North and North-East facing houses usually give better energy efficiency. Is the house situated on a sloping block and will this limit its use? Does the block lend itself to becoming a suitable play space for children or pets?
Access and parking: If you are unsteady on your feet or have small children who need to be carried from house to car and vise versa, how will you cope with a flight of steps or a steep climb? If you do not have private parking, will it be a challenge to find a park on the street?
Special features: Does the house offer any special features such as a pleasant view, delightful interior, charming courtyard or unique design? A house that stands out in some way from the rest may give it the edge over other houses on offer and is likely to have better resell value if the feature is an integral part of the house.
Renovations/Redecoration: If any work is needed on the house, either to match your tastes or suit your lifestyle, how much will this add on to the purchase price? Would you be better looking for something more closely suited to your needs given the added cost and inconvenience of taking on the projects in question?
Helpful tips and wise cautions
When it comes to house hunting, being prepared with a good knowledge of the property market and knowing your priorities are two of your best weapons. However, even for the more experienced buyer, choosing the right property is rarely a level headed decision because it is hard not to feel emotionally involved. Albeit, with a little common sense, forward thinking, and some sound advice, the would-be homebuyer can be confident that their final decision is the right one.
Who is buying the property? When you go to see a house, always take whoever else who is involved in the purchase. It may be tempting to split up with the reasoning that you can see more properties in less time, however if you have an idea that the property may be suitable, make the effort to see it with your spouse or partner. By going together you can both get a feel for the place and if you like it, you will be in the position to put in an offer straight away. If only one of you attends the initial inspection, not only will you have to arrange a second viewing for your partner if you are interested (during which time someone else’s offer may be accepted), but the selling agent may not see you as a serious contender if they realise only one of the buying party is present. Don’t assume that taking a friend or relative to see a property is a suitable substitute as their opinion – while important to you – may be distracting and will not hold to the same priorities as yours.
How many homes to inspect? Some experts advise buyers not to even think about making an offer until they have inspected at least 20 homes in order to acquire a sound knowledge of the market and a feel for the type of property they want. This is good and common sense advice, but there are occasions when such an in-depth market research exercise could mean missing out on the home of your dreams. If you are confident that the first house you see is the right house, give careful consideration to whether you will find something better by going through another 20 houses just because the books say you have to. It does happen that people fall in love with the first house they see and then find disappointment later when they miss out on it because they felt obliged to see several other homes ‘as standard practice’. While it is normal to want to have something to compare with, if you do believe you have found the right home at the start of your search, don’t be afraid to make an offer on it so that you are at least in the running for negotiations. Then, at least you have a chance to buy it but will not be legally obliged to do so if you change your mind early on.
Feeling tired and discouraged? House hunting can be frustrating and exhausting, especially if you have missed out on a place you had your heart set on. The discouragement from such an experience can easily lead you to compromise on the house you choose, especially if there do not seem to be any houses on offer that meet your ideals. However, if your heart is not in it, do not give in to your fatigue. It is better to take a break for a while than to end up with a house you are inwardly dissatisfied with.
Pressure to decide? In a seller’s market when properties are selling quickly or when prices are increasing, buyers may feel under pressure to find a place and buy it, even if it not exactly what they were after. Agent’s hype about getting in quick or the media’s coverage of buoyant markets only adds to this feeling of not wanting to miss out. However, buying under pressure, especially when you are not entirely satisfied with the product, usually results in regret and possibly financial loss. The decision behind choosing a new home goes much deeper than the lure of financial rewards should be made with careful consideration. Even in a steady market, a buyer can still be made to feel under pressure if they think the agent is losing patience with them. In this instance, remember that the seller pays the agent a commission once the property is sold and not the other way around.
Overcautious? Wisdom and caution lead to good judgment even though an element of risk taking may be involved. However, procrastination, whether due to fear of making a mistake, lack of knowledge or waiting for something better leads to no result at all. If you have been watching the property market for years, preparing yourself to buy, talking about taking the plunge and even looking at finance options but have never taken any action, consider the reasons why. Have you been waiting for the ‘right time’, a better job or until you can afford just what you want? Chances are, you’ve seen at least one boom in the property market during that time and missed out on an increase in property values that would not have been possible to accumulate over many years of saving. Sure, the property market goes through fluctuations but if you are in it for the long term and do your homework in the search, you will very likely make a wise investment that will continue to increase in value.
Odd sales history? Be cautious about properties that seem to have come back on the market time and again. They may be physically sound, but chances are if one owner after another has given up on them, the next owner will too – after they have put up with whatever the problem may be until they can bear it no longer. Perhaps disagreeable neighbours or stench from local rubbish tip or factory is the problem; perhaps it is something less obvious. With any property you are considering, visit it at different times on different days of the week and if possible introduce yourself to the neighbours – you’ll at least get a feel for the type of people they are and find out what they think of the neighbourhood. Many experts agree that inspecting a property during heavy rain is the most ideal time as problem areas, otherwise concealed, will often show their true colours