Buying A Property

If you are going to purchase private real estate and not use a real estate agent there are certain things you should consider before looking at any private property.

There are 3 stages to purchasing a property:

1. Signing of the contract including conditions, known as conditional contract.

2. The date the contract conditions are met, known as unconditional contract.

3. Settlement date (the day that the buyer gains possession)

Before you purchase.

Purchasing property can be complex and you should consider including in your purchase conditions a qualified valuation. Other conditions should include a building and pest inspections and a finance clause where finance is required.

Costs

The purchaser of any property in Australia pays stamp duty on the purchase. See the Planner on the No Agent property website to assist you to thoroughly assess costs before you get started.

Settlement

The date for settlement is set by both parties. When settlement takes place the balance of the contract price is paid to the vendor and the purchaser receives the title documents to the property and, of course, the keys.

When a mortgage is involved the mortgagee (the lender) pays the money (loaned) plus any additional accounts (such as rates, water etc.) to the seller and receives the title documents to the property. The lender retains the title and mortgage documents until the term of the mortgage is complete.

Inspecting

When you are dealing directly with the seller, arrange meeting times that are suitable to you. You will be establishing a relationship with the seller so remember to be flexible at all times as they wish to sell the property as much as you may wish to purchase the property. Don’t feel pressured into making decisions. If you are genuinely interested in the property, ask for a guided tour, then ask to spend some time just browsing on your own.

Take a look at the surrounding area. Consider proximity of schools, transport, churches, shopping centres or other places of importance to you. Calculate any differences in cost or convenience that you may expect from different properties, as these factors can have a bearing on your selection of a property.

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Negotiating a price

In most cases there is a negotiating system that will take place during the contract process, initially the buyer will sign a contract offering a specific price and in return the seller will either accept the offer or counter offer with another price. This process will continue until both parties agree on a price and any associated condition. At this stage the seller will sign and date the contract which then makes both parties bound by the contract. The contract and the buyers deposit cheque are then lodged with the seller’s solicitor or conveyancer who will retain the deposit in a trust account until settlement takes place.

Property condition

Make yourself aware of structural problems such as cracks in the walls, termite damage or evidence of subsidence. Also take note of the condition of the wiring, plumbing and electrical fittings. It is highly recommended that you engage the services of a qualified building and pest Inspectors as their property report may highlight any serious and potentially costly problems.

Questions to ask the seller

?• Why are you selling?

?• How long have you lived here?

?• What improvements have been carried out to the property?

?• What are the rates?

?• Where is the nearest transport?

?• What are the neighbours like?

?• Have there been any price reductions?

?• How long has the property been on the market?

?• Which direction does the property face?

?• Which rooms get the Western sun in the afternoon?

?• What fixtures and fittings are included or excluded in the sale?

?• Are there any current issues with the property that they are aware of?

?• Where are the nearest schools?

DISCLAIMER

This information supplied is general in nature and is to be used and applied as a guide only. Seek professional advice for detailed advice and information regarding your specific circumstances. No Agent Property accepts no responsibility or liability for the use or application of the information provided.

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