Buying a new home can be daunting and is often made harder with the real estate jargon.
Here are some of “Buzz” words that you should be aware of :-
Blank Canvas : It’s stuffed
City glimpses : You could see the city if you stand on a ladder or squint.
Compact : Tiny
Cosy : Small, you can’t swing a cat Functional kitchen : Still in original state and needs full renovation Ripe for renovation : Property is only worth its land value
Cooling Off period : Legal term. Time given to prospective buyer to consider their impending purchase. This clause does NOT apply to an Auction Purchase.
EOI : Expression of Interest. Generally, a private sale campaign where agents ask buyers to place their interest and offers by a specific date.
Highest and Best : Where the agent advises there is ONE opportunity to make your “highest and best offer” to secure the property.
Turnkey : A property that is ready to move into immediately with no further work required.
Unconditional Offer : Not subject to any other condition such as finance, building and pest inspections.
Remember that ALL AUCTION SALES ARE UNCONDITIONAL.
FIRST TIME BUYER TIPS
FOMO (fear of missing out) trap : Auctions are very competitive. The last thing you want is to exceed your budget in fear of missing out. Stick to your finance limit, needs and want list.
Pre Approval Offer : Many think that obtaining a Pre-approval for a home loan secures the loan. Incorrect. Pre-approvals only assess your desirability as a borrower based on your income, financial history and ability to make loan payments. The amount is only an estimate.
Non-negotiables List : A common phrase used is, “it has to tick all the boxes”. There is no such thing as the perfect house. Be prepared to compromise. Some points to consider include location, internal lighting, practicality. Inspect the property several times i.e at night, during weekends and daytime. Talk to neighbors about the property.
You will be surprised what is disclosed. Check the parking at night in the street.
Market Influences : This refers to pricing increases and/or slowing of real estate stock. Recent property sales have been a vendor’s windfall. Higher price tags are common due to a lack of supply. The more properties come onto the market, the more choices the buyer will have.
Remember, what goes up must come down.
Beware of the additional expenses and costs when purchasing a property that you will need to factor into your budget.
Some additional costs include :
• Lenders mortgage insurance • Your legal fees
• Disbursements for purchase (these include adjustments for water, owners corporation fees, search fees, council rates etc.)
• Building and pest reports • Removalists costs
• Building Insurance
Contact Paul today if you need more information.
Tags: real estate