Griffith first home buyers have it tough, with a chronic shortage of properties available for sale in the region; and house prices rising rapidly.
Worst still, most properties in Griffith are sold at auction – a daunting scenario for property novices who have to compete with savvy investors.
While many first home buyers are intimidated by the prospect of bidding wars, others are simply confused about what you need to do in terms of bank approvals, contract signing and inspections.
Nathan Thomas, Griffith Real Estate, has done three videos with The Area News at the soon-to-be advertised for sale property on 16 Kanoa st, North Griffith, to explain the buying process.
- What do you need to do before you go for a house inspection?
- What should you look out for in the house during the inspection?
- What do you do if you decide you want the house; and how auctions work.
What do you before you inspect a house you are interested in buying
Nathan advises prospective buyers to get their formal full approval for a bank loan as soon as possible.
“Don’t just get pre-approval, get all your finances sorted out for full approval before you inspect”.
“In today’s market in Griffith, houses are selling in less than 30 days”.
Nathan said getting full approval can take up to three weeks – plenty of time for a wealthy investor to dive in and buy the house while the first home buyer is still getting organised.
“Many buyers have lost out on their dream homes simply before they haven’t had that finance and taken that next step”.
What to look for at a house inspection
“The first thing you want to look at is to make sure the house doesn’t have any structural problems,” Nathan said.
He said the best way to do that is to look at the ceiling, look at the floors, and make sure the doors open and close ok.
In terms of choosing if a place is right for you, Nathan advises to make a list of all the things you want in a house, and to divide it into two categories – things you how must have, and things you want but could do without.
“You also want to look to check the lighting, check that there’s ample power supply and the hot water system – is it natural gas, electric and how old is is”.
What to do if you decide you want the house
“A lot of properties in Griffith are being sold by auction,” Nathan said.
“The number one thing for first home buyer is to not be frightened of the auction”.
Nathan said you should always have a good talk with the agent beforehand – and get their estimate on the selling price and vendor instructions – before you dive in”.
“As a first home buyer, if you are very aware of the legal obligations of the agent, you very quickly find out where the house sits on the market”.
For those concerned about having to spend money before an auction on inspections, he said there is good news.
Nathan said that agents are now legally obliged to provide buyers with information on building and pest issues.
“For most properties [in Griffith] that were going to auction, the vendors are providing decent building reports”.
This means buyers may not have to fork out the cost of their own inspection reports.
Nathan also recommends all buyers undertake a second inspection of a property before deciding to make an offer or partake in an auction.