Are you feeling overwhelmed and don’t know where to start when it comes to buying a home? It’s time to get a team of experts on your side to ease you through your journey.
Who is involved in buying a house?
Here are five professionals you should have on your team when you’re ready to buy a home. We’ve also outlined when you should take the help of each professional during the different stages of buying.
1. A buyer’s agent
A buyer’s agent is a licensed professional whose sole purpose is to help you buy your dream home. Their services can range from finding you a property that meets your criteria to bidding at an auction for a home you fancy.
A buyer’s agent is different from a real-estate agent.
|Buyer’s agents||Real-estate agents|
|They are involved with helping buyers find a suitable home.||They are involved with helping sellers or vendors market their properties.|
|They will help choose a property, whether from off-market listings or advertised properties.||They will help market the property for sale.|
|They will negotiate a lower price for the buyer during a private sale or auction.||They will negotiate a higher price for the seller’s property during a private sale or auction.|
|The buyer pays the fee or commission.||The seller pays the fee or commission.|
When should I use a buyer’s agent?
- When you’re starting your home buying journey, talk to a buyer’s agent and be very specific about what you’re looking for in your home.
- When you’re time-poor and cannot attend open houses and property inspections.
- When you do not want to overbid during an auction; a buyer’s agent will know exactly how much to bid and not go over the reserve price.
2. A conveyancer
Conveyancing involves the transfer of property ownership from the seller’s name to the buyer’s name. A licensed and qualified conveyancer will take care of the legal aspects when buying a home. They will act as your representative when talking to a seller (or the agent).
A conveyancer will:
- Prepare, check and lodge the documents you need for property settlement
- Ensure the transfer of ownership is done as per the requirements of your state or territory
- Check for easements to see if any other person or organisation has legal rights to access your land
- Check for covenants that could restrict any property changes
- Check for caveats to ensure no one else has an interest in your property
- Calculate the adjustment of rates and taxes if the seller already paid council rates
- Attend settlement and make sure the documents are correctly lodged
Conveyancer vs solicitor
While both conveyancers and solicitors are qualified and will help you during the property settlement process, there are some slight differences between them.
|Specialised in conveyancing.||Not specialised in conveyancing, but offers a broader range of legal services|
|Cannot always provide advice on property law||Can provide advice on property law and take care of legal issues that arise during settlement|
|Most conveyancers charge a flat fee||Most solicitors charge an hourly rate|
It’s best to use a conveyancer if this is your first time buying, as you’d need an expert during the settlement process.
3. A mortgage broker
If you need finance for your home, a mortgage broker should be on your team. A mortgage broker is an intermediary between you and the lender. They will work out your finances and understand your property goals. They will do the legwork of going to multiple lenders to get you the best deal on your home loan.
In Australia, mortgage brokers are required to act in your best interest to ensure your needs and interests are a priority when providing credit assistance.
When should I use a mortgage broker?
- If it’s your first time getting a mortgage and you need help to navigate the home loan maze
- If you have a situation that is a little outside of standard lending criteria or was knocked back by a major bank
- If you require a range of home loan options from more than one lender
- If you need a point person to liaise with the other professionals in your home buying team to ensure a smooth approval process
4. A building inspector
If you don’t want the nightmare of having pests, termites or owning a property that is rife with structural damage, have a building inspector on your team.
The inspector will perform a detailed building inspection, check the property for any defects and recommend repairs. Some building inspections might not check for termites and other pests. It’s best to take help from pest inspectors and termite inspectors before you buy.
Engage the services of a building inspector before you settle on your home loan. If possible, complete the inspection a few days before you sign the contract.
5. An insurance broker
An insurance broker is an intermediary between you and the insurance companies who will find insurance policies from various providers. They will help you find:
- Home and contents insurance, which covers unexpected events like fire damage, theft, storm damage, etc. This insurance covers both your home and personal items.
- Contents insurance, which protects important items from damage. This insurance covers only the personal items in your home.
At which home buying stage should I use their services?
|Home buying team member||When to use their services|
|A buyer’s agent||When you are actively looking for a home to buy.|
|A mortgage broker||When you want to get pre-approved for a home loan to know how much you can invest in your home
Do not exchange any contracts before your finance is approved.
|A building inspector||Before you sign the contract of sale and settle.|
|A conveyancer||When all the inspection reports are satisfactory, and you’re formally approved for a home loan.|
|An insurance broker||Before contracts are signed and exchanged with the seller|
Do you need a mortgage broker on your team?
At Home Loan Experts, we’re not just mortgage brokers. We are credit experts who can:
- Get you incredible interest rates
- Understand your situation to get tough loans approved
- Provide post-settlement services. Our relationship does not end at settlement. We will be with you throughout the life of your home loan
- Provide free upfront valuations and credit reports.
Not convinced yet? Read more about us and how we can help you get approved for a home loan. Talk to a mortgage broker today. Call us on 1300 889 743 or get a fill in our free no-obligation enquiry form.