Tips for first home buyers
It's hard navigating the real estate market for the first time. Here are our TOP TIPS to help you choose the best first home.
Meet the Neighbours
You would be amazed at the amount of extra information you can get by paying a friendly visit to your potential neighbours. Go and knock on doors and introduce yourself. Say that you're thinking of buying the house next door.
Then ask a simple open-ended question like "I was wondering what the bus service is like around here..." The vast majority of people are more than happy to have a five minute chat with you on the doorstep. If you do buy the property, you've saved yourself the introductions already.
Maybe more importantly, you will be surprised at how much the neighbours know what's going on nextdoor. They may let slip some really vital information like how long the property has been on the market, why the vendors are selling, or why they dislike the owners so much (listen carefully for the underlying message... you may decide to stay well away!!)
Have Multiple Visits
Go back to the property at least twice (three or four times even better)
Ain't it funny how some properties have open homes only from 10am to 11am. Isn't this a bit early for all us late Sunday risers?
There is often a legitimate reason. Go back to the same property at 3pm and its probably sitting in deep shade. Agents are there to sell you the property, not show you the weaknesses. That's up to you to spot for yourself. One thing that's really annoying is no sun when all your neighbours are getting it.
Visit the property at 10am, 1pm, 4pm and maybe even 7pm in the summer months. Have a really good look each time at where the sun is, and how it has moved across the sky. Think about how different this will be in summer/winter when the sun is further north or south. Sunlight indoors can usually be improved by installing skylights.
Small Changes - Big Benefits
Most of us are easily influenced creatures and are swayed by first impressions. However, you would do well to put aside your preconceived ideas about the perfect house, and think more about where you could make slight changes to improve the overall appearance.
Sometimes just a fresh paint job can improve a property remarkably. The secret is that because you are one of the 10% who has spotted the potential, once the work is completed you have all 90% of us others who now think the property is superb and we should pay you back handsomely for your foresight.
Get a Building Inspection Done
It's an old cliché but your home is your biggest asset. You don't want that asset to start costing you money as soon as you move in.
A thorough building inspection will cover all aspects of both the interior and exterior of the property. Ask your inspector how detailed his report is. Inspection reports vary tremendously from:
A simple tick the box report... probably not worth spending your money on, your dad could probably do better!
A narrative report on the exterior and interior condition... better, but the comments should be detailed.
A narrative report similar to the above, including an estimate for repairs cost... The BEST.
An inspector should spend at least 1 hour on site. They need this amount of time to cover all the bases. Any less and you should be suspect of short cuts.
Ask the Agent Lots of Questions
The agent must tell you the truth. They can be held for misrepresentation if any of their statements about the property are proven incorrect. Thus it is in your interest to ask them as much as you can. Often the reply will be that "they don't know" or "you will have to check that out for yourself".
Do not assume that the agent will have a comprehensive knowledge of the property. They are there to sell the property for the owner at the best price possible. A good question is to ask them is "How do they justify the asking price". See if the agent can provide you with a list of recent sales in the local area.
Best Bargains
Getting a good buy can be difficult, as you need to be well informed about market values, and also have some idea about how long the property has been on the market and the vendors motivations for selling. Its a fact that many good deals can be obtained when the vendor is going through one of the three Ds - death, debts or divorce.
In these situations you are much more likely to strike a motivated vendor who is keen to sell, perhaps at below true market value. Other opportunities include properties that have been poorly marketed, private sales, and properties where the vendor is already under contract for another property.
Lots of Owners = Bad Property?
Have a close look at the Title. Your lawyer will have a search copy of this. Has the property had more than four or five owners in the last ten years? Why would this be?
Perhaps the property only suits a certain lifestyle and people tend to grow out of it. Not much reason for concern but remember that this might just be the case for you too.
Much worse...perhaps there is a specific problem which doesn't rear its ugly head until the depths of winter. Have a very close look and forward think about any property which has had a number of recent successive owners.
Another Cliché... Location x 3
Remember that better locations generate more demand from buyers. This in turn means that property prices are generally higher, but the properties are easier to sell when you need to, and there is generally a higher capital growth over time in these locations.
High demand locations have good schools, transport, shopping and entertainment.
The "Big Six"
The more of these you can get when you buy the better...
SUN, SHELTER, PRIVACY, VIEWS, FLAT LAND and PARKING.
Easy Improvements to Add Value
Redecorate...
Make the place brighter, cleaner and more spacious.
Update...
Improve and update kitchen and bathrooms.
Flow...
Install some doors opening to the garden and improve the indoor/outdoor flow.
Outdoors...
Tidy and improve the outdoor living areas, make them comfortable and private
You would be amazed at the amount of extra information you can get by paying a friendly visit to your potential neighbours. Go and knock on doors and introduce yourself. Say that you're thinking of buying the house next door.
Then ask a simple open-ended question like "I was wondering what the bus service is like around here..." The vast majority of people are more than happy to have a five minute chat with you on the doorstep. If you do buy the property, you've saved yourself the introductions already.
Maybe more importantly, you will be surprised at how much the neighbours know what's going on nextdoor. They may let slip some really vital information like how long the property has been on the market, why the vendors are selling, or why they dislike the owners so much (listen carefully for the underlying message... you may decide to stay well away!!)
Have Multiple Visits
Go back to the property at least twice (three or four times even better)
Ain't it funny how some properties have open homes only from 10am to 11am. Isn't this a bit early for all us late Sunday risers?
There is often a legitimate reason. Go back to the same property at 3pm and its probably sitting in deep shade. Agents are there to sell you the property, not show you the weaknesses. That's up to you to spot for yourself. One thing that's really annoying is no sun when all your neighbours are getting it.
Visit the property at 10am, 1pm, 4pm and maybe even 7pm in the summer months. Have a really good look each time at where the sun is, and how it has moved across the sky. Think about how different this will be in summer/winter when the sun is further north or south. Sunlight indoors can usually be improved by installing skylights.
Small Changes - Big Benefits
Most of us are easily influenced creatures and are swayed by first impressions. However, you would do well to put aside your preconceived ideas about the perfect house, and think more about where you could make slight changes to improve the overall appearance.
Sometimes just a fresh paint job can improve a property remarkably. The secret is that because you are one of the 10% who has spotted the potential, once the work is completed you have all 90% of us others who now think the property is superb and we should pay you back handsomely for your foresight.
Get a Building Inspection Done
It's an old cliché but your home is your biggest asset. You don't want that asset to start costing you money as soon as you move in.
A thorough building inspection will cover all aspects of both the interior and exterior of the property. Ask your inspector how detailed his report is. Inspection reports vary tremendously from:
A simple tick the box report... probably not worth spending your money on, your dad could probably do better!
A narrative report on the exterior and interior condition... better, but the comments should be detailed.
A narrative report similar to the above, including an estimate for repairs cost... The BEST.
An inspector should spend at least 1 hour on site. They need this amount of time to cover all the bases. Any less and you should be suspect of short cuts.
Ask the Agent Lots of Questions
The agent must tell you the truth. They can be held for misrepresentation if any of their statements about the property are proven incorrect. Thus it is in your interest to ask them as much as you can. Often the reply will be that "they don't know" or "you will have to check that out for yourself".
Do not assume that the agent will have a comprehensive knowledge of the property. They are there to sell the property for the owner at the best price possible. A good question is to ask them is "How do they justify the asking price". See if the agent can provide you with a list of recent sales in the local area.
Best Bargains
Getting a good buy can be difficult, as you need to be well informed about market values, and also have some idea about how long the property has been on the market and the vendors motivations for selling. Its a fact that many good deals can be obtained when the vendor is going through one of the three Ds - death, debts or divorce.
In these situations you are much more likely to strike a motivated vendor who is keen to sell, perhaps at below true market value. Other opportunities include properties that have been poorly marketed, private sales, and properties where the vendor is already under contract for another property.
Lots of Owners = Bad Property?
Have a close look at the Title. Your lawyer will have a search copy of this. Has the property had more than four or five owners in the last ten years? Why would this be?
Perhaps the property only suits a certain lifestyle and people tend to grow out of it. Not much reason for concern but remember that this might just be the case for you too.
Much worse...perhaps there is a specific problem which doesn't rear its ugly head until the depths of winter. Have a very close look and forward think about any property which has had a number of recent successive owners.
Another Cliché... Location x 3
Remember that better locations generate more demand from buyers. This in turn means that property prices are generally higher, but the properties are easier to sell when you need to, and there is generally a higher capital growth over time in these locations.
High demand locations have good schools, transport, shopping and entertainment.
The "Big Six"
The more of these you can get when you buy the better...
SUN, SHELTER, PRIVACY, VIEWS, FLAT LAND and PARKING.
Easy Improvements to Add Value
Redecorate...
Make the place brighter, cleaner and more spacious.
Update...
Improve and update kitchen and bathrooms.
Flow...
Install some doors opening to the garden and improve the indoor/outdoor flow.
Outdoors...
Tidy and improve the outdoor living areas, make them comfortable and private