Four Different Ways To Buy Property
There are plenty of ways to be a homeowner, and most people want to choose to own their own home one day. The real question is how to go about it. It always sounds easy on paper: have a deposit, speak to the bank, buy a house. The process is more challenging than that, and it’s important to note that this isn’t the only way to buy a house.
Not everyone who buys a house approached the bank and asked for a mortgage. Some people turn to a mortgage broker and ask for their help instead. Purchasing a property is more flexible than you think, which is why we’ve detailed four ways you can buy a house below. Let’s take a closer look!
- By Private Treaty. The most common way you can invest in a property is on the open market by private treaty. The property is publicly listed with an asking price and a seller then gets to consider some offers off the back of that. Once an offer is accepted and the agreement is confirmed, contracts of sale are issued and these are signed and exchanged, but only when all searches are completed, all funds are arranged and it’s all ready to go. Until the contracts are exchanged, both parties can back out at any time. In some cases, there are multiple offers put forward and it can be time consuming to get into a bidding war. Sealed bids might be proposed when this happens, but the seller has the choice of who is the buyer in the end.
- By Auction. It seems like an excellent way to get a bargain, but there is a lot of preparation before an auction to ensure that you don’t throw your money away. In a normal auction, the buyer who has the highest bid when the hammer is slammed is the winner and you are committed to the buy. After the auction, there are 28 days to pay the balance and usually, an auctioned property is normally listed no more than 4 weeks in advance. Moving fast is important during an auction, but there are other processes to consider.
- By Modern Auction. A modern method of auction is one that offers a little more flexibility and once the offer is accepted, there is a non-refundable reservation fee.
- By Off-Plan Purchase. If you want a brand new property to invest in, you can purchase your house off-plan. This means that you are committing to buying your house before the build is completed. A lot of people tend to do this as you can use plans, CGI and brochures to get an idea of what it’ll look like. You pay a reservation fee to commit to the build, and you have another 28 days to exchange contracts. Double checking where money is held before the property is ready is important, and you should ask what happens to it if the developer company folds, too. It’s so important to choose a property that appeals to you!
*This is a collaborative post.
