Buying Tips

» Buying - Selecting the Right Property
» Buying - Offer and Acceptance
» Pre-Settlement Inspection
» Settlement

Buying - Selecting the Right Property

Inspecting Properties

First, list the advantages and disadvantages of each property inspected. Compare this to your requirements.

Second, be realistic when inspecting homes. Rarely will one home measure up completely.  Be flexible and objective and try to avoid preconceived ideas that may cause you to miss better ideas highlighted in the home. Take notice of the homes, which have most of the advantages and the least disadvantages.

Third, don't rush inspections and don't attempt too many inspections in one day - it is easy to become confused. Be prepared to make a second visit to a home.  If you are married, both husband and wife should inspect the property together.  Each partner may have slightly different requirements in a home and it is important that both agree about the suitability of a home.  Once you have found an acceptable home, have a look around the neighbourhood.  Check the area for community facilities and other types of surrounding properties ' for example, industrial properties, which may cause both noise and air pollution ' and ask the REIWA agent for further information on the area.

If you are purchasing a property as a rental investment, then prior to submitting an offer, it would be a good idea to have the property manager from agency you will be selecting to manage it for you, to inspect the property with you. The property manager has extensive knowledge of rental properties and has a keen eye for detail and the rent that should be obtained from the property.

The property manager will be able to suggest what improvements/repairs should be or will have to be attended to prior to renting the property.  For example window and door locks, residual current devices. Any associated costs will need to be factored into your budget.

Location, Style and Size

In choosing the right home there are several factors you need to consider, including: Location: preferred suburbs access to schools, work, amenities, style and size of home: unit, house, duplex and family needs

In deciding on a location, your local REIWA real estate agents know areas extremely well and are also aware of any proposed changes in the area that are likely to affect your investment. However, you should consider factors such as distance from your place of work, nearby educational facilities, availability of recreational facilities, the local town-planning scheme, and the development potential of the land.

When determining the style and size of your home, consider your basic needs and discuss these with the agent, for example:

* Garage or carport requirements
* an extensive garden or easy care surrounds
* Family living areas: games room, bedrooms etc.
* Inside and outside entertaining areas
* Capacity to extend.

Although the agent representing the vendor can relate the matters relevant to the sale, prior to submitting an offer you should make your own enquiries to satisfy yourself on the suitability of the property.  The research that you may care to undertake includes obtaining a copy of the Certificate of Title.  This will inform you of any encumbrances that may affect your use of the land or strata entitlement. It is also wise to enquire with the seller's agent whether the local authority has approved extensions on the property.

Finance

Finance is a key issue.  If you require a loan to enable the purchase of a home, then your capacity to meet home loan repayments will determine the price range in which you can consider buying.

Therefore, prior to inspecting properties for sale, it is a good idea to establish your borrowing capacity with your lending institution. Once your capacity is established you can then determine what properties are available in your price range.

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Buying - Offer and Acceptance

The Process of Offer and Acceptance

Finally, the moment you have been waiting for . . . it is time to put an offer to the vendor.  If you consider the price to be too high, then discuss with the agent the option of presenting an offer at a lower price.  The listing agent can then negotiate in an attempt to reach a price acceptable to both parties.

Agents are normally paid by the seller to obtain a fair and reasonable price and are required to act in the interests of the seller.  The agent is under no obligation to advise you if another buyer offers a higher price nor the value of that offer.  The agent must simply present your offer when it is received.

If you are genuinely keen on the property you have selected, then it is in your interest to make the offer your best offer.

Carefully consider the comments from the REIWA agent.  For example, if the agent informs you that the seller is not willing to consider offers below a certain price, then by making a low offer, you may lose the perfect property. However, it is your right to make an offer at whatever level you choose.

The Offer and Acceptance Contract

The details of your offer are expressed in the Contract for Sale of Land/Strata Title by Offer and Acceptance.  This is a legally binding contract that sets down the terms and conditions under which the purchase and sale will be completed.

After you have signed the offer the agent then forwards the offer to the seller.  The seller may not agree to your price and/or your conditions.  The seller may make a counter offer or may totally reject your offer.

A copy of the Contract for Sale of Land/Strata Title by Offer and Acceptance and the Joint Form of General Conditions for the Sale of Land is given to all people who are a party to the offer and those people who may accept the offer.  The Joint Form of General Conditions for the Sale of Land is a legal part of the Contract and details the rights and obligations of the buyer and seller during the pre - settlement period.

The contract is not legally binding until the Contract for Sale of Land/Strata Title by Offer and Acceptance is signed by all parties who are signatories to the contract, and communication of its acceptance is conveyed to all parties who are signatories to the contract.

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Pre-Settlement Inspection

Pursuant to the Joint Form of General Conditions the seller shall give the purchaser reasonable opportunity to inspect the property within seven days prior to settlement.  The purchaser would use this opportunity to determine if any special conditions have been satisfied and to determine if the property is in the same state and condition as inspected by the purchaser on or immediately before the date of the contract

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Settlement

At settlement, the balance of the purchase price is paid to the seller, any outstanding mortgages discharged, new mortgages lodged, then the purchaser becomes the legal owner of the property.  If the seller has occupied the property as the principal place of residence, then the seller is entitled to remain in possession of the property until noon on the day after settlement.

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