How to buy your first home

Buying a home can be a tricky process, but there are a few steps you can take to make things go more smoothly

If you’ve found your dream home, or you just want to be ready for when the time comes, we’ve created a checklist of things you can do to prepare for purchase.

Organise pre-approval

A home loan pre-approval is when you receive conditional approval from a lender for the amount you’d like to borrow — before you’ve even found your ideal property. Pre-approval is great if you want to narrow down your search and want to be able to put in an offer with confidence.

You can learn more about the process in our pre-approval guide. Plus, your local FND Broker can help you with the paperwork for securing pre-approval.

Get a conveyancer on your side

A conveyancer (or a solicitor) can arrange the property ownership transfer process for you. They’ll review the contract of sale when you’re ready to buy, ensure everything is in order, and may help arrange pest and building inspections before you exchange contracts.

Read our guide to conveyancing to learn about the costs and benefits of this process. It’s a good idea to find this legal representation early — when you’re ready to buy, you’ll want someone by your side who you feel comfortable with.

Get on top of market trends

If you’ve been shopping around for a home, you’ve got a fairly good understanding of what’s going on in your local real estate market. And if you haven’t, it’s worth doing your homework before making your first offer. You’ll have a clearer picture if you know how much properties have been selling for and how long they’ve taken to sell.

If you don’t have time for research but still want to offer a realistic price, consider getting a buyer’s agent involved. They’re experts in price negotiation and will have a good sense of what your chosen property is worth in the current market.

Fine tune your negotiating skills

Negotiating a purchase can be nerve-racking, but try to cover these basics before you get started:

• Know the market and how much the property is worth

• Put your offer in writing

• Have your pre-approval sorted

• Build a relationship with the real estate agent — don’t negotiate with the seller

• Be mentally prepared to walk away if the deal doesn’t work out.

To help get your offer over the line, you might also consider offering the seller a ‘sweetener’, such a shorter settlement period. You should always check with your solicitor and mortgage broker about the implications of this and ensure that the necessary property inspections have been completed.

Understand the different ways to buy: private treaty vs auction

When you're buying a home there are often two options - private treaty or auction. Each is quite different and has their own pros and cons.

Private treaty is when the seller sets the price, then you (the buyer) negotiate with them until you reach a price, you're both comfortable with. In many cases, most of the negotiation is done between the seller’s real estate agent and the buyer.

Auctions, on the other hand, are when interested buyers come together to bid on the property, with the property going to the highest bidder. If lots of properties you like are going up for auction, there’s a good chance that the one you’ll want could also be sold at auction. It’s a clever idea to attend a few auctions as a spectator to get a feel for the process before you go to one as a buyer.