The different stages of buying a house

Here are eight different stages of the buying process that you need to familiarise yourself with in order to make the right decisions for your property goals.

Sjanna Sandalova

Buying a house is a complex and tedious process, after all it’s probably the largest asset you will buy in your lifetime.

Before you begin your search for a property, there are different stages of the buying process that you need to familiarise yourself with in order to make the right decisions so that you can achieve your end goal.

Here are eight different stages to buying a house that will guide you through a smooth transition into home ownership.

1. Identify your goal

The first question you need to ask yourself is why are you buying? Are you buying for investment purposes or living purposes? Are you looking to buy established or new? Maybe you want to live in an apartment rather than a house. These are the types of questions which ultimately affect your end property goals and will determine how much money you will need to borrow from the bank.

2. Save your deposit

Once you know what it is you want out of home ownership, you will know how much you need to save for a deposit. Generally speaking, most banks require between a five and 20 per cent deposit, but this depends on a range of factors.

The earlier you start saving the quicker it will be to get your finances sorted, getting you one step closer to buying your home. Ensure to keep in mind all of the extra costs that come with buying a house, like stamp duty, building inspections, conveyancing fees etc.

3. Find the right home loan for you

By this stage, you should have figured out your budget and what type of property you can afford. Now it is time to start searching for a home loan. Explore all of the competitive home loan options available and familiarise yourself with the different interest rates on these loans. Getting professional advice from a mortgage broker will help stream-line this process and give you some estimations around how much money you can borrow from the bank - this will make it easier when you begin your search. Once you get approval you are off and away with your house hunting journey.

4. Research the market

You should apply this stage from the beginning of your journey. Try and research the current market conditions as much as you can. Figure out when it is a good time to buy to ensure you get the best possible deal. You should also research the area you want to live in, does it match your living or investment goals?

Keep yourself updated with similar sales in the area and chat to local agents to give you some extra insight. This knowledge will come in handy when it comes to the negotiation process down the track.

5. Begin your search

Finally, you can begin searching for the property you want to buy. Attend as many home opens as you can so you can get a feel for what you like. Don't rush into making an offer on the first property you see, explore your options and settle on the right property knowing you are satisfied.

6. Making an offer

When you find a property your interested in, have done all the inspections and it ticks all the boxes, it's time to make an offer. When it comes to negotiating, it's best to seek direction from a buyer's agent. Don't be too inflexible and make sure the price you bid matches the current market. You want to avoid going back and forth too much, as you could potentially lose to other bidders by a couple of hundred dollars when you know the property is worth much more. Remember to remain cautious, but be realistic against market expectations.

7. Follow the settlement process

You are coming up to the finish line when you reach the settlement process – the legal transformation of home ownership! It is important that you discuss and work out an appropriate settlement date with your lender and settlement agent before signing a contract. Typically, a minimum of six weeks is required for settlement, but you should not rush the settlement date, and ensure you give yourself enough time so that all relevant paperwork can be approved and looked at as thoroughly as possible.