Decoding the Homebuying Process in Australia

Buying a home is probably the most important purchase you’ll ever make. The property itself is likely to be your largest financial asset while the home is the foundation for building a better life. Homebuying in Australia can be complicated, though, which is why you have to enter the process with a clear understanding of what to expect.

Teaming up with a buyer’s agent delivers a personalised property journey to help you save time, money, and your sanity. Still, this simple guide to the homebuying process should provide an extra layer of confidence.

Homebuying in Australia: Key Steps

A complex process

The homebuying process in Australia is complex and takes an average of 6-12 weeks to complete even when there is no chain or added complications. In reality, though, the process starts long before this as prospective homebuyer’s need to save for a deposit. The average is believed to be over $150,000.

It will also be necessary to conduct research into different types of ownership, stamp duty, insurance, and other key features. Moreover, it’s important to decide between private sales and auctions. As far as the active homebuying process is concerned, though, the key steps are:

• Work out your finances, including deposits and how much you can borrow. 
• Find a property that fits your budget and preferences of what you want from a home.
• Make an offer and have it accepted by the seller. 
• Conduct inspections and other checks to confirm that it is the right purchase. 
• Complete the legal settlement with the help of conveyancers and solicitors.

Assuming all of the above steps are completed, you will be ready to move into the new home within weeks – or start utilising your investment property.

Pre-Approval Vs Pre-Qualification

Most prospective homeowners will need a loan to complete their purchase. In fact, over half of current homeowners have a mortgage while many of the 2.9 million mortgage-free homeowners had one before clearing the balance. 

Frankly, mortgage applications can be the most stressful part of the process, not least because you will encounter various terminology. Pre-approval and pre-qualification are two terms that you simply need to know.

Pre-qualification is a quick and easy process that gives you an estimate of how much you could borrow based on your credit score, income and assets, and debt. For many prospective buyers, it is the first step to understanding how much could be borrowed and what type of house could be purchased.

Pre-approval is a more thorough process that looks deeper into your financial situation. While it doesn’t mean you are guaranteed to have your mortgage accepted, it does help you gain a clearer understanding of what you can afford and how a home purchase will impact your finances. Most sellers will pay more attention to pre-approval.

The Importance of Home Inspections

Whether viewing a home in person or via a virtual tour, it’s easy to fall in love with a property and let it influence your next steps. When viewing a home that you’re interested in, it’s important to have a checklist of items to look for. This includes the age and condition of the property, natural lighting, signs of dampness, and the noise of the neighbourhood.

Hiring a specialist to conduct building and pest inspections is also advised as they can spot things you would miss. Strata reports may also be accessed if buying a townhouse, apartment, or villa.

Home inspections are vital for many reasons. If problems are identified, it can either save you from buying the wrong property or give you more bargaining power when negotiating the price with a seller. Alternatively, it enables you to complete the purchase with 100% confidence and start the next chapter with increased happiness.

Negotiating the Best Deal

A successful homebuying process relies on several factors, but getting the best price is easily one of the most important barometers of success. When entering an auction, you need to set a ceiling for what you are prepared to spend. For private sales, though, the following elements can influence your bidding strategy:

• How long the property has been listed.
• Whether surveys found any issues that could reduce the cost.
• How quickly the seller wants to sell.
• Recent sale prices for similar properties in the area.

While the above info can help you prepare your bid, working with an experienced buyer’s agent can help you negotiate the best price with sellers. Any funds saved can then be invested in making the house a home.

Tip for all homebuyers: Consider using a buyers agent

For help on finding the best property and negotiating the best price, contact our friendly buyers agents to learn more now. 

You&Me Personalised Property Services offers a risk-free buyer’s agency guarantee. Give us a call today and find out more.

Perth: (08) 6500 0655

Brisbane:  (07) 2111 7567