Although you might have a strong support network from conveyancers and professional lawyers, there are many aspects that you should be aware of to avoid unexpected pitfalls during the complicated conveyancing process. Our experts at Dev Smith Nguyen would like to propose some recommendations to avoid traps as follows with a big hope that you can bear in mind to
prevent potential problems.
First of all is unlisted conditions for the sake of the buyer before contract of sale signing
There are some special conditions that your lawyer can include in the contract before signing to deal with specific issues but he might forget. In this case, it is better that you should make
a scanning search to see if you need any extra conditions listing in the contract, for example, pest control, some maintenance or innovation expenses,….
Discussing about these items can possibly help to save a huge part for your budget.
Where the contract has already been signed there is generally no opportunity to add special conditions.
Second is to keep a level head, stick to your budget – avoid glamorous pitches, control your temper at the auction
Real estate agents are trained to get as much money out of buyers as possible, so do not fall into the trap of wanting what you cannot afford. It can be hard to resist, but you must stick to
the amount you have been approved to borrow. Don’t be tempted to think that an extra few thousand or more won’t have an adverse effect – circumstances can change, and future
financial shocks like job loss or rising interest rates could mean you cannot meet mortgage repayments on an over-budget purchase.
It might be very easy for you to overspend at an auction when you get so excited. Buying above your means could cause you to lose your deposit if you are unable to secure finance
after the auction. Or if you do get finance, this might cause you to be tight on living expenses for the foreseeable future, which probably isn’t in your best interests.
The best way to avoid overspending at auction is to not get too attached to one particular property and remain your level head. Always look at many different properties, consider your
options, talk to agents, and review your budget and costs. It’s also worth considering whether you would be better off buying a house through a contract for a private sale since that provides for a three-day cooling off period.
Third is not to underestimate associated costs with your new house – careful planning with your budget
In the heat of buying excitement, many home buyers overlook the costs associated with buying a property such as stamp duties, mortgage insurance. Besides, loan application fees,
valuation costs, rates and building and pest inspections all have to be paid on or before settlement. If you do not have enough funds for incidental costs, you may defer property settlement, which could cost you in penalty fees and or loss of your deposit.
Kindly note that you will also have to pay to move, possibly redecorate to your taste and repair items that will choose inopportune moments to break down. Some extra money should
be set aside for ongoing repairs and maintenance.
Generally, your lawyer will accompany and give you secured result in every single step of your journey. However, it is still better to acknowledge about these mistakes to keep yourself
engaged and followed-up in all tasks of conveyancing work.