Steps for making an offer on a house

When it comes to buying your dream home, there is a lot of excitement, preparation, and deliberation involved. After all, it is a massive financial commitment, so it’s important to follow the required steps to ensure your home buying process goes as smoothly as possible.

If you’re in the process of buying a new home, here are a few steps on how to make offer on a house when the time comes.

1. Find out how much you can borrow

Before you even start hunting for a house, it’s important to determine what your lending situation is. A mortgage broker or alternative lender can help you find out how much you are capable of borrowing, and will make sure you have sufficient funds to pay your deposits and mortgage loan repayments.

2. Work out the type of property you are able to buy

Depending on your budget and your lifestyle needs, make a list of must-haves and compromises you can make for your future home.

3. Research the market and do some house hunting!

Next, you’ll want to research the market for the type of house you want to buy. Have a look at what’s on sale at the moment and do some house hunting to find the home that fits your family’s lifestyle.

4. Understand the method of sale through a lawyer

The three main ways of selling a house are by negotiation, tender, or auction. It’s a good idea to talk to a property law expert to get some advice on the processes of each method of sale. They can give you independent advice on the method that’s tailored to your own best interests.

5. Do your due diligence before making your final offer

As a home buyer, you are required to perform due diligence by gathering as much information as you can about the house you’d like to purchase. This can include things like a building inspection, researching the neighbourhood and location, and checking the property title. Your lawyer can guide you through this process by advising you what you should look out for.

6. Review your agreement before signing it

Before you sign your agreement, ensure that you and your lawyer have gone through the documents to make sure you understand every aspect of the sale and purchase. You’ll also need to fulfil any conditions stated in the agreement, like obtaining a LIM report, to confirming finance, so settlement can proceed.

And that’s it. Once you’ve signed the agreement, and fulfilled its conditions, you can say hello to your brand new home!

For more housing tips, check out The Summit Homes blog.

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