by Lisa Montgomery, Head of Consumer Advocacy 26/06/2007

Once you find a home which meets your budget, your taste and your needs, check it out thoroughly. Look at the home at different times of the day and night to get a feel for what it would really be like to live there. For example, if big trucks go past at night or the neighbours have regular rowdy parties you’ll want to know about it before you put in an offer.

On the subject of neighbours, they can be a good source of information about the neighbourhood and even your prospective home and its possible faults. Chat to them over the fence and you might also get an idea as to whether you’d enjoy living next to them.

Often, particularly in city areas, the real estate agent will make sure the owner is out when you inspect their property. But if you get the chance to meet the owner there are some useful questions you can ask which will really give you the edge in your negotiations.

These include questions like ‘Why are you selling?, ‘How much did you pay for the house originally?’, ‘Are there any reports which detail the state of the plumbing and wiring?’, ‘Has the property ever been rented?’, and ‘What is your preferred settlement period?’.

If you don’t get the chance to ask the owner these questions then make sure you ask the real estate agent showing you the home. If they don’t know the answers, or appear to be brushing them off with some stock responses, then ask them to put the questions to the owner and get back to you.

If you find out why the owner is selling you’ll know if they need to sell quickly and are more likely to accept a lower offer. They may also be open to this if they’ve lived in the house for a long time and it’s dramatically increased in value.

Properties which have been rented out have generally experienced more wear and tear – another reason for a lower offer, as well as greater vigilance in your inspections. Plumbing and wiring reports will let you know whether you’d be buying any problems there, and knowing the settlement period gives you the opportunity to see if it will match your own timing needs.

It’s also vital to get pest and building inspections done, or to make any property settlement contingent on the property satisfactorily passing these inspections.

If buying by private treaty, don’t feel you have to meet the asking price unless you know there is a lot of competition for the property. Try putting in a lower offer and see if you can get the vendor to drop the price.

If you are buying at an auction the process can be trickier. It’s vital that you attend a few auctions to make sure you know how it all works. If you don’t think you’ll be able to play it right, consider getting someone else to do the bidding for you – first giving them a firm price limit they can’t exceed.

If you’re bidding yourself, don’t get carried away by the event – remember it’s your own hard-earned cash you’re playing with. Set your limit and stick to it and don’t feel you need to go along with the crowd. For example you could put in a bid which is less than the auctioneer is asking for and see if this helps stop the price from escalating too high. Auctions are often like a game of strategy, and it’s good to have your own strategy in mind before it starts.

Finally, when you’ve had your offer or bid accepted, it’s time to finalise your mortgage, sign contracts and proceed to settlement. Appoint a solicitor or conveyancer to check that everything is in order, carry out the necessary searches, and co-ordinate the contract exchange and settlement.

You should ask them what their costs are and do they include disbursements. You will also need to arrange for building insurance as this is normally a requirement of the mortgage.

Then it will at last be time to take possession of your new home and move in. Your home buying is at an end – so sit back, open up the bubbly, survey your new surrounds and enjoy your very first home!

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