2 Ways For First-time Buyers to Make the Sale on a Dream Home

Posted on: 7 May 2015

Like many first-time home buyers, you may feel overwhelmed when you begin the search for your new home. It can sometimes take several weeks, and often months, for you to find the perfect house in the right location for the right price. After all the hard work, it can be very disappointing to miss out on the house because another buyer beat you to the post. Here are two ways to help you make that perfect home yours.

1. Get pre-approval on your home loan

Most major banks and smaller building societies offer a loan pre-approval service for their customers. This means that all the time-consuming paperwork, credit checks, and employment checks have already been completed before you even make an offer on a piece of real estate.

The lengthiest element to put together in the settlement period of buying a home is usually getting finance approved. By having pre-approval you can negotiate a far shorter settlement period in the contract of sale, and this is often very appealing to vendors. Knowing exactly how much you are able to borrow also means you won't miss out on the property because you've over estimated your borrowing power.

2. Don't try to haggle on the price too much

Everyone likes to get a bargain, but putting in a ridiculously low offer is never a good idea. Although the vendor may make a counter-offer and enter into a to-and-fro arrangement, this can often backfire. This leaves time for another buyer to enter the equation and make a much more appealing bid to the vendor which may mean you miss out on the home entirely.

If your heart is really set on a house then you're better off putting in a sound offer as close to the asking price as possible. Have the realtor explain that the figure is the limit of your budget to the vendor. Include details such as the fact that you have pre-approval for the amount offered, and that you are a first-time buyer and are not relying on another house sale to fund the purchase. These facts, coupled with a genuine and reasonable offer, will greatly increase the odds of your offer being accepted.

By following these two steps, you're putting yourself in a very strong position as a buyer. This will help to give you the confidence you need to proceed with an offer to buy swiftly and before your dream home is bought out from under your nose.