Best Practices for Buying a Home
So, you're on a mission to find your dream home. It's not just about the house; it's about imagining your future in the right place. In this article, we'll break down the essential steps for a smooth home-buying process, from finding the perfect spot to locking it in with a handy reservations agreement. Plus, we'll introduce you to a helpful tool called Clear Chain to make the process a breeze. Ready to get started?
Identify the right home
Finding the perfect home can be quite a challenge. It's not just about knowing what you want now; it's also about envisioning your future. So, where should you begin? We've gathered some key factors to help you kickstart the journey of discovering the right home for you.
What do you want out of the house?
“How big do I want my home to be?” Consider the size and layout of the house, the number of rooms, and any specific features you desire, such as a backyard, office space, or a play area for children.
“How accessible do I need my home to be?” Decide between a walk-up or an elevator building, depending on your mobility and convenience preferences.
“Does this house make sense to the life I want to live?” Evaluate how the home's layout and location cater to your work-from-home needs, recreational activities, and family requirements.
“How long do I plan on staying here?” Decide how long you intend to stay in the home to ensure it meets your long-term needs.
“What’s my budget going to be?” Establish a clear budget, factoring in not only the property's purchase price but also ongoing costs like maintenance, property taxes, and utilities.
Create your 15 minute city minute city
You may want to take this a step further and consider creating your 15MC. The "15-minute city" is a city planning concept where everything you need - like your job, shopping, schools, doctors, and fun stuff - is just a short 15-minute walk, bike ride, or quick bus trip away from wherever you live in the city. This idea is all about reducing car reliance, fostering healthy and sustainable living, and enhancing the well-being and quality of life for urban residents.
Have all your documents ready
Now that you’ve identified the right home, it’s time to get your documents ready. Make sure you prepare essential documents, including payslips, bank statements, passport, and utility bills for the buying process.
Find a mortgage broker
The next step is to seek out a reputable mortgage broker to assist you in finding the best financing options. A mortgage broker will be able to assist you in applying for a pre-approval on a mortgage. This will help you establish your final budget.
Set a Timeline
So now that we’ve envisioned our dream home, and got our pre-approval, it’s time to set out a realistic timeline. Determine your desired move-in date and any must-move-by deadlines, this will help to guide the buying process.
Create a list of contingencies and stipulations
It’s helpful to create a list of contingencies and stipulations to protect your interests during the transaction. Contingencies can give you leverage in negotiations, allowing you to request adjustments to the deal or lower the price based on inspection results. Without this you may find yourself locked into a deal that may not be in your best financial interest.
How can Clear Chain help?
One of your stipulations may be that all buyers/sellers in your property chain use Clear Chain throughout the transaction. Did you know that one in three property chains fall through? Using Clear Chain can help improve the odds by…
View the whole chain
Clear Chain offers users a comprehensive view of the entire property chain, from the moment an offer is accepted to the final sale completion. This transparency ensures you're never in the dark about the progress of your property transaction.
Know when you will complete
With Clear Chain, you can accurately predict when your property transaction will be completed. This knowledge is invaluable for planning your move and reducing uncertainty.
Know when each step will happen
The platform guides users through each stage of the property transaction process with proactive notifications. You'll receive timely reminders about what needs to be done and when, ensuring you stay on schedule.
Get tips and tricks to keep things progressing
Clear Chain doesn't just offer a platform; it provides valuable insights and advice to keep the property transaction moving smoothly. From handling potential issues to streamlining the process, you'll have access to useful tips and tricks.
Understand the process
Property transactions can be complex, especially when they involve a chain. Clear Chain helps users understand each step, removing the element of the unknown and setting realistic expectations. This knowledge reduces stress and confusion during the buying process.
Keep everyone on schedule
Clear Chain fosters efficient communication and coordination among all parties involved, including buyers, sellers, estate agents, and conveyancers. Automated notifications and reminders ensure everyone stays on target to meet agreed exchange and completion dates.
Want to see Clear Chain in action?
Book a demo with us, and we’ll give you a preview of our program and how it can help simplify your property chain.
Create a Reservations Agreement
A reservations agreement secures the property, preventing other potential buyers from making competing offers during the period of due diligence, ensuring you won't lose out on the property you want.
Make yourself “Chain Free”
If possible, make yourself chain-free by having your own property sold or rented out before buying a new one, reducing complications. The longer the property chain, the higher the chance of the sale falling apart. By making yourself chain free, or by using Clear Chain, your odds improve.
Find a Conveyancer
Select a conveyancer who is not overwhelmed and has a strong reputation for organization and efficiency. A conveyancer that has time on their hands can process your property transaction more swiftly, with a lower risk of making mistakes that could lead to legal issues. This in turn reduces the risk of delays on your property purchase.
Be Willing to Walk Away
If the property or the seller/agent's conduct raises concerns, don't hesitate to walk away from the deal. Deciding not to go through with the purchase can stop you from facing money or legal problems that could come up because of hidden property issues or dishonest behavior. Besides that, you avoid unnecessary stress. The process of buying a house can already be stressful enough without a difficult seller/agent involved, so make sure you protect your peace of mind.
Find a RICS Surveyor
Hire a qualified RICS (Royal Institution of Chartered Surveyors) surveyor before making an offer to identify potential issues with the property. In doing so you can make an informed decision about the property's condition, potential problems, and repair costs before committing to the purchase. Having knowledge of any issues can also give you negotiating leverage to adjust the offer price or request necessary repairs before finalizing the deal.
Home buying can be a bit of a puzzle, but with the right pieces in place, it all comes together nicely. With these steps, and the power of Clear Chain, getting your dream home can be a breeze. We hope this helped, and we wish you the best of luck in your home buying journey!
