Guide to Buying
Take a quick look at some of the steps in the process of buying and selling property, including the legal requirements of signing contracts.
Choosing - Investment or Residence?
Is this property to be your home? Is it to be for an investment? The selection criteria are different.
You should look for the same basics in either a residence or an investment property: is the structure sound; is it close to amenities and transport; is it in a good location, etc. It is not necessary to fall in love with your investment property - remember, you will not be living in it! For your investment property, look for features that will improve your rental return and minimise your maintenance costs.
Pick your location
Research the area in which you wish to buy. What is good market value for a property of the type that you are interested in? What are the facilities like in this area? Is there a certain neighbourhood in the area which is more desirable to buy in?
Arrange your Finance
Arrange your finances before you get too far into the process. Make sure it is a wise financial decision for you and your family. Establish exactly how much you can spend on a property before you begin to look seriously.
Select Suitable Properties
Properties are listed on the website, on general real estate websites, in publications, on office Window Cards and on signage at the property itself. Some properties are discreetly listed at the request of the sellers and are only able to be presented to suitably qualified buyers while others never make it to the website as they are sold immediately.
It is advisable to contact our office or register your details on the website to ascertain the full range of available properties with us. Registering this way also allows you to receive the weekly buyers newsletter which will keep you up-to-date with new properties in the area.
Inspect the Property
Inspect as many properties as you can when you establish your location, price range, and requirements. This will help you to get local knowledge of what is available and what is well priced. It will also ensure that you are known to the agent selling the property when new ones become available.
Making an Offer
Once you've found the right house in the right place, make an offer. Ensure that you deal with the agent. Ascertain what is a fair price. Try to ensure that your offer is realistic and attractive to the vendor.
Organise Inspections
It is prudent to organise a building inspection and pest inspection on any property that you are serious about buying. You must organise this prior to an auction if the property is to be sold at auction, as it cannot be done after sale. For units you may wish to include an inspection of the relevant Strata and if you are buying vacant land you may consider a survey.
Signing a Contract
Ensure you follow these steps:
(a) Obtain a PAMD Form 27b Disclosure to Buyer (from the selling agent)
(b) Obtain a PAMD Form 30b Warning Statement (from the selling agent)
(c) If necessary, seek legal advice regarding whether or not to waive the 5-business day cooling off period before signing a Contract of Sale.
ONLY THEN
(d) sign a Contract of Sale noting Special Conditions making the contract subject to building and pest inspections
(e) Pay a deposit to the selling agent and receive a trust account receipt.
Auctions differ in that there is no cooling-off period and no special conditions such as pest inspections or subject-to-finance clauses.
Appoint a Legal Representative
Once you have signed the contract you will need a solicitor to look over all the paperwork. If you are unsure of which one to use Harcourts City Sales and Rentals can help you with this.
If there are no problems with the property and finance is approved, prepare to own your new home. Once the Contract is unconditional, keep in touch with your solicitor with regard to any issues approaching the settlement date.
Settlement
The final step is the settlement when the solicitors of all parties meet. Your solicitor hands over the money and in return receives the deeds, which are kept by the lending body until the loan is repaid. The house is now yours (and the bank's) and you can take occupancy.