Timing is everything when you’re looking to buy a house. It’s hard to know when to enter the market with different (and sometimes seemingly conflicting) statistics being reported in the media. We explain the best ways you can do some solid research of your own, along with a few handy tips to help you obtain that essential mortgage pre-approval.
What’s our take on the current real estate market?
While property values are holding, it’s clear that the market has slowed – and that has opened the door for many first home buyers. Tougher lending conditions, and factors like uncertainty around proposed new Government legislation, has also meant that there’s far fewer property investors to contend with.
Along with there being greater choice in the properties for sale, buyers are telling us they are also now able to take more time to pick their perfect home. That’s reflected in the increase in the number of days it takes to sell a house (which was sitting at 44 days nationally in the latest REINZ statistics in February 2018). The QV report for March is also worth reading.
4 essential tips to get yourself prepared when buying
We know from experience that preparation is key for buying success – even in a slower market.
1. Get your finance sorted
Obtaining finance can be a tricky task for many buyers. Be prepared to approach multiple lenders before you receive pre-approval. This is when a good mortgage broker can be worth their weight in gold by saving you time and effort. It’s also in their best interest to negotiate the ideal rate for you.
2. Head to the auction rooms
To get a good sense of property values, head to the auction rooms for an afternoon. With clearance rates being pretty grim (with over 60 percent of properties failing to sell under the hammer, as just one example), the lack of bidders means that buying by auction could also be a clever strategy.
3. Due diligence is worth taking your time on
While the analogy of ‘you snooze, you lose’ is still relevant, due diligence is a crucial part of the process of buying a house which you shouldn’t scrimp on. The list of essentials includes getting a:
LIM report – we explain why it’s worth getting your own copy here
While it may seem sensible to save some money by using a friend or relative who is handy around the house to assess the condition of a property, choosing a suitably qualified professional is worth the expense. That way you’ll know exactly what you’re buying.
4. Ask for recommendations
Putting together a team of experts is one of the easiest ways to set yourself up for a great result. Ask around for recommendations of a lawyer and mortgage broker. It’s also well worth finding an experienced real estate agent who understands your property criteria, respects your budget, and will give you honest (and unbiased) advice.
Like some more useful tips when it comes to buying a house, or a recommendation for an expert mortgage broker? Get in touch with our team.