Buying your first home comes with a wealth of stability for a growing family. But here’s a fair piece of advice: you can’t get in over your head, especially so early in the game. That’s called mortgage stress, and back in 2012 the Australian Bureau of Statistics found that 3 in 10 households were financially overextending themselves.
I don’t want that for you.
If you’re looking at a privately listed property in Sydney, use these top tactics for getting a house for the price you want. Think strategically and practically, and you’ll soon see a happy home owning future ahead of you.
But before we begin, please! Memorise this:
I shall not get in over my head early in the home buying game.
Ok, let’s get on with things.
Attending your first auction? Make sure you read this post for my top tips on winning on auction day.
Private sale negotiation tips for homebuyers
In most transactional situations, the buyer has the balance of power. Don’t like your coffee? Walk with your wallet elsewhere. It’s not so when it comes to real estate. And in crazy property market like Sydney’s, there’s an uneven balance of power…and it’s in the seller’s favour. If the house has just been listed and there’s several people making offers, the vendor – that’s the party selling the house – has the power.
But don’t assume all is lost! Use these tips to stay the course:
Sydney houses get snapped up instantly, so make your first offer your best offer. If you take too much time to make up your mind, someone else is going to score your dream home.
Like two of my clients, for example. Let’s call them Katrina and Jim. They’ve been looking for a house for almost 9 months – which is pretty long in the home buying game! Every time they see a new house they like, it’s just out of their budget. They’re always telling me how they wished they’d bought one of the first homes they’d looked at.
Get your home loan pre approval
Go and see your Sydney mortgage broker and get him to help you find the right mortgage for you! They’ll help you get pre-approval, so you’re ready to roll as soon as you lay your eyes on the walk-in wardrobe.
Important! Negotiate the cooling off period
Look, sometimes we change our minds. And that’s ok! If you can get all your ducks lined up (like finance and inspections), it helps to have a cooling off period. That’s when you can walk away without paying for the house, but there will probably be a few fees and charges involved.
Be prepared to walk away
I’m a huge fan of dreaming big, but when you’re buying your first home, try to get your feelings to take a back seat. We’re thinking with our heads here, people, and not our hearts. Why?
Because if you and your vendor can’t agree on a price and terms, then you need to be prepared to walk away and look elsewhere. Somewhere better, with a home that you can afford and will be sure to love.
Know the property value
This is vital ammunition for you and your mortgage broker! Keep an eye on sales in the area. If the house you want is overpriced, by all means get negotiating. But if it’s in line with other house prices or even lower, you likely won’t be in a position to haggle.
Find out why they’re selling
Is the seller going through a divorce? Do they need to sell quickly because they’re moving overseas? The faster the seller needs to sell, the more power you have. And the more power you have, the more likely you’ll be able to get a house for the price you want.
But the best advice of all? Be strong, know what you want, and educate yourself as much as possible. The first step is getting the best in show on your side. Ask me anything – I’m here to help you buy your dream home.