The pressure-cooker atmosphere of purchasing property in a booming market can unnerve even the most experienced buyers.
Currently, media reports talk of buyers being motivated by FOMO or fear of missing out and that fuelling some really crazy prices. When you are dealing with something as emotionally important as your forever home, it can be hard to avoid getting swept up in the moment.
While money is cheap with low interest rates, stretching your finances to breaking point can be dangerous. It can put unnecessary pressure on relationships, and impact on other key decisions in your life like when to have children or lock you into a job you don’t enjoy because of your fear about paying the mortgage.
Below are four key actions you should take when you find your dream home. This advice aims to secure your purchase as quickly as possible and avoid another seller coming over the top of you.
Here are four top tips for securing a home in a booming market:
- Organise a pre-arranged loan. This is an essential part of the strategy as it defines how much you can spend and it gives you instant access to finance and helps you know exactly how much you can spend (and no more!)
- Seek written proof that your offer has been passed to the property owner by the seller’s agent. You don’t want the agent holding back your offer, hoping something better might come up. Legally, the agent must pass all offers to their client.
- Ask the seller’s agent for a written copy of any other subsequent offers that have been received. This not only creates a paper trail but allows you the opportunity to increase your bid if that’s what you want to do.
- Once you’ve found your dream home, use the pre-arranged loan and savings to put down a 10% bond or deposit. Do this with a bank cheque. This should avoid any delay in exchanging contracts.