Tips for buying your first home

With our local property market sitting firmly in a recovery phase, an increasing number of prospective first-time buyers are recognising the excellent opportunities available to them in Western Australia.

We have some of the most affordable housing in the country, making it the perfect time to jump onto the property ladder. But before you get started, it’s important you understand how the home purchase process works.

Firstly, when you find a property you like, inspect it thoroughly and more than once to make sure you are comfortable with it. If you are buying an established property, then you are usually buying it as is, so make sure there are no major areas of repair that you aren’t prepared for.

If you decide to proceed with the purchase, the real estate agent will negotiate with you on the seller’s behalf to come to an agreement on price and terms of the purchase. It’s a good idea to speak with a home loan provider or mortgage broker prior to making an offer, so you can determine your borrowing capacity and comfortably negotiate within your limits.

Once a price and terms have been agreed to, you will be required to sign the contract to formalise the sale and decide on a settlement date. As a rule, try and allow at least 30 days between signing and settlement. However, if you are borrowing to purchase the property then you should allow at least 45 days.

Home loan finance approval is a common condition and most lenders now require at least four weeks to process a loan application. Termite clearances and building inspections are also reasonably common as general conditions on a contract to secure settlement.

Another thing to keep in mind are the regulations that require dwellings to have two Residual Current Devices installed as electrical safety switches. There are also similar regulations around hard-wired smoke alarms, which must be present and must replace any common battery-operated smoke alarms.

You should also consider using a settlement agent to help guide you through the settlement process. They will ensure you complete the necessary legal work, including checks of the property title.

Finally, it is essential you conduct a final inspection of the property prior to getting the keys. This provides you with the opportunity to ensure the property is in the same condition as stated in the contract.

If you have any questions about the buying process or want to look for your next home to buy, reach out to a REIWA real estate agent or visit reiwa.com.