Buying a home is often the biggest financial investment any person will make in his lifetime. Due to this fact, it could be an exhilarating and satisfying experience, but is for some people often a testing and even overwhelming experience. Am I buying the right property? Am I paying too much?

Here are a few tips to consider before making a decision:

Do your homework
LOCATION, LOCATION, LOCATION are always the first three factors to consider. Other factors which should be taken into account and which should influence your decision includes proximity to work, schools, family, friends, amenities such as shops, access to highways and investment prospects. Once you have decided on a suitable neighbourhood, start viewing as many properties as possible. Visit show houses, buy local newspapers and property editions and visit prominent property websites. Remember to always “compare apples with apples”.

Decide on a price range and your preferred type and style of home. Make a list of priorities comparing factors – most important versus least important. Contact an agent of an active agency in the area to assist you with advice.

Look at your budget
First time home buyers will generally use their budget to determine their type of home and area of purchase. Financial institutions generally prefer that applicants pay a deposit when purchasing a property. The size of deposit varies from type of property. Anything from 5% for a residential property to 40% for agricultural properties may be required. In certain instances banks will approve 100% bonds. Ask your estate agent to recommend a good bond originator to assist you with pre-assessment before making an offer.

It is also very important to remember that transfer fees including transfer duties will be payable with most property purchases. The amount of transfer fee payable will depend on the purchase price of the property. Bond registration fees will also be payable in instances where a bond is used to finance the property transaction. Ask your estate agent to assist you with obtaining a quote from a transfer attorney before you make an offer on a property.

Make an offer
Once you have decided on a suitable property, ask your estate agent to explain the sales process to you if you are not 100% certain. Discuss the possible transaction with him/her and ask as much questions as possible about the property, the costs involved as well as the contract and offer procedures. The estate agent will discuss the contract with you in detail and will complete the contract with you, after which it will be presented to the seller for approval. Everything agreed upon between you and the seller must be in written format on the agreement/offer. Verbal offers carry no validity.