Purchasing Steps
SECURING YOUR NEW HOME
Buying residential real estate can be a very exciting process, however it can also be a confusing time for the buyer. As you may already know, different agencies usually have different sets of rules and standards, so we would like to inform you of the general buying process.
Sellers receive all types of interest—some genuine, some not. Some people submit offers to test the possibility of sale, but don’t stay true to their offer.
This can lead to frustration and concern for the owners as they try to assess who is a genuine buyer. The best way to present a strong offer on any property is to follow the steps below. This allows you to put forward your strongest purchasing position to the agent.
PREPARATION
Firstly, make your intention known to the agent straight away. Many buyers have missed out on properties due to keeping their interest secret.
Speak to your bank of finance broker about your intention to buy. This will give you a good understanding of what you’re able to borrow. Ideally, seek pre-approval as early in your search process as possible.
Have access to the deposit you will be required to pay upon securing the home. This generally between 5% to 10% of the purchase price.
Have a solicitor or conveyancing clerk in mind. Have an idea of what settlement would suit your needs.
OFFER, NEGOTIATION, ACCEPTANCE
To make your offer look as strong as you possibly can, it is advised that you put your offer in writing. Once you have completed the contract of sale with the agent, they are then able to start negotiations.
At this point, one of three things may happen:
- The Seller agrees that the offer is fair and reasonable and accepts it.
- The Seller is not happy with the offer and is not prepared to negotiate.
- The Seller is not happy with the offer however is prepared to negotiate therefore puts in writing their counter terms at which you are then given the same three options above.
Please remember, this is a major decision and people make decisions at different speeds. We advise that you start considering your next move prior to hearing back from us so we can help you progress as quickly as possible.
Once all parties have agreed on the contract terms and conditions, the contract is able to be dated.
BUILDING AND PEST INSPECTION
It is up to you as the buyer to arrange a Building and Pest inspection of the home should you feel it needs one.
If you are buying via Private Treaty, you are able make the contract subject to a building and pest inspection. The standard timeframe for this clause is 7 days from the date of the contract.
BUYING AT AUCTION
Buying at Auction is a great way to buy real estate as you can see your competition and what they are willing to pay; however; there are a few little things you must understand before bidding on a home. Firstly, upon the fall of the hammer, the sale is final. This means there are no building and pest or finance clauses in the contract. If you wish to have any inspections done, ensure that you liaise with the agent to have these done prior to the Auction Day.
To bid at an auction, you must register prior to the auction commencing. To do this you must show some form of photo ID for example a Driver’s Licence or Passport. If you are intending to buy the property as a partnership (for example husband and wife) both parties must be registered to bid. What if one party can’t be there on the day? The party that is not able to be there on the day must still register as a bidder. The party that will not be there on the day will also be required to give authority in writing to the party that will be there on the day. All these forms are available from the REIQ as standard forms or through your agent. Do not leave it to auction day to do this as sometimes it is not logistically possible to have all the required forms filled in and you may miss out on your perfect property.
If you intend to bid on someone else’s behalf, the correct paperwork must be completed prior to the day of auction, otherwise you are deemed to be acting on your own behalf.
One of the best things about an Auction is that immediately on the fall of the hammer, the bidder, of the highest bid accepted, signs the contract as the buyer and they have secured the home.
INSURANCE
The risk will be passed to you as the buyer of the home from 5pm on the next business day after the contract is dated. This means you should get a cover note from your insurance company upon securing the home.