House Hunting

How do you hunt for a home?
There are many ways to look for a home

  • Contact North Shore Realty, we regularly have properties that are just hitting the market.
  • Look in the real estate guide in the local paper
  • The Internet – try www.propertypoint.com.au and www.realestate.com.au.
  • Contact your local agents
  • Drive around the areas you like to find properties currently for sale
  • Check window displays at local agencies
  • Limit yourself to looking at no more than 5 houses at a time to ensure you don’t get confused

How many properties should you look at before purchasing?
There is no quick answer here. Since property values are based on market demand it is important that you view as many properties as needed for you to be able to judge what is good value for money. We recommend that you look at as many as you feel you need to confidently be able to state that you have made the right choice. Some people will look at a hundred and some will look at one. Do not be surprised if you buy the first house an agent shows you. A good agent will have listened to you and will show you homes that meet your requirements. However, if you have looked at more houses than you can remember and still have not found the right home you may need to consider adjusting your expectations. This can be difficult to do, but some people will not be able to afford everything they want in a house.

Be honest with the agent. If the houses are not what you are looking for, tell the agent what you do not like about them. This will help them gauge what you want in a home and thereby limit the houses to those that are suitable to you.

What do I need in a home?
Consider where you want to live and what type of property you want to live in. Consider what you need in a home and try to plan ahead. Although you will not be able to plan for all contingencies most people have some idea of what they want to have in the future. Are you going to have children, a pet or another family member staying with you? Will you have a second car or need somewhere to store a boat. Some future planning may save you having to move again in the near future. Write a list of what the house needs to have. This list will be made up of necessities (i.e. number of bedrooms) and desires (i.e. modern bathroom and water view). The necessities should be things you will not compromise on and the desires should be a list of things you would like but can live without or do yourself at a later date.

What areas would I like to live in?
Location is important. A good location is not only pleasant to live in but a good area will enhance your property’s value and appeal when you come to sell. Remember to consider where you need to be (i.e. close to school, work, family, shops and services) and analyse it against where you can afford to live. If your budget allows you to buy your ideal home in the perfect location you may not need to compromise. The best way to know what is a good buy for your money is to look at a few properties in more than one area. The size and condition of a home in your budget will vary in different areas. It is worthwhile looking in more than one area if you are prepared to compromise because it may be the difference between living in a bomb in a good location or a mansion in a less sought after area.

What helps to make a good location?
There are several sources of information you may use when selecting a neighbourhood that is perfect for you and your family such as prior knowledge, information from friends and relatives, price and style of home or by driving through the community.

The coast and inner city areas are generally always popular locations. But there are other factors that make a location great. Some people need or want to be close to work and shops, while others want the tranquil life away from the hustle and bustle. In picking a good location consider what the position offers you and your lifestyle. Have a look at the properties at night as well as during the day. Consider environmental issues like nearby factories and noisy streets. To some people these factors are inconsequential when compared with the convenience of being able to walk to work or town. Some people consider a good location is a tranquil property away from town. They are prepared to travel the distance for the isolation. Some people think a good location is a property with a view and others think it is distance to the local shops. Some people will compromise comfort for location and pick the worst house in the best street. Think about what is important to you.

Do you need to have pest and building inspections?
Get an independent property inspection if you want peace of mind. Real estate agents are not builder’s, we do not guarantee that a property is structurally sound because we are not qualified to do so. We recommend that you obtain an independent property inspection when you are purchasing a property. The inspector should be a fully insured member of the Master Builder’s Association and the Housing Industry of Australia.

Pest inspections are not as common in Tasmania as they are throughout the rest of Australia. Termites are not prevalent like on the mainland. If you want peace of mind there are companies that do inspect and fumigate.

Are you worried you are paying too much?
Most purchasers judge the price of a property by what they see on the market. If you are worried that you are paying too much for a property you can educate yourself for a minimum cost. Did you know that you can access the sales records for other properties that have sold in a particular street through www.thelist.tas.gov.au? It does cost to use this service, however if you need to put your mind at ease, it is full of the facts and figures regarding sales. The staff at North Shore Realty will happily help you with this service.

Do you know what restrictions there are on the title of the property?
Some properties may have restrictions on the title such as easements (area of land over which you cannot build), caveats (e.g. a mortgage that needs to be discharged before a title can be transferred) and covenants (e.g. restrictions on the type of house construction such as the building must be in brick, restrictions on the amount of trees that can be cleared).

Should you pay a deposit?
Many people are advising buyers that they do not need to pay a deposit. This is bad advice. If a seller is weighing up between two offers on their property, there is no doubt that the owner will favour the one with the full 10% deposit already paid. Most astute investors and developers who buy a lot of property usually submit their contracts with full 10% deposits.

If the contract is subject to finance and the finance is not approved then the deposit is returned. The only argument that could be in favour of not paying a deposit is the saving of a little bit of interest on the deposit monies until settlement (e.g. 5% interest over 1 month on $10,000 is less than $50). If this is a concern to you, just consider if you are looking at the big picture.

Buying a home and what happens after the purchase?
You have signed the contract and now the sorting out of the details begins. A copy of the contract is sent to you and your solicitor. A copy can also be sent to your mortgage broker if you advise us to do so. The solicitors will usually require a minimum of two weeks to do all the necessary checks on the property.

Insure the property immediately
It is always advisable that you insure a property that you are in the process of purchasing. This covers your interests in the event that the property is burnt down and the vendor is not insured.

What costs do I need to budget for?
There are several costs that you may need to cover. These may include:

  • Bank loan, application and settlement fees
  • Stamp duty on mortgage
  • Local council searches
  • State Government stamp duty
  • Builder’s inspection fees
  • Surveyor’s fees if the property boundaries need checking
  • Valuation fees
  • Solicitor’s fees
  • Land Titles Office searches
  • Land Titles Office registration fee on mortgage