Information for Buying your Home
Buying a home will probably be the most expensive thing you ever do, so it’s important to know as much about the process as you can. With so much to think about and a significant amount of money at stake, every decision counts.
Before deciding to buy a home it makes sense to take time to look around and get to know the market. This helps you understand how it all works, enabling a well-informed decision when you find the property you want.
Register Your Interest
Once you’ve inspected a property and are interested, it’s extremely important to let the Agent know. It’s also important to maintain regular contact with the Agent throughout the campaign, to ensure you’re advised of any other interest and offers.
Prior to Auction
If you’re seriously interested in a property and intend to bid, have your Solicitor/Conveyancer inspect the Contract of Sale. If you don’t have a Solicitor/Conveyancer our Company can suggest one to assist you.
Make sure you have a clear understanding of any Special Conditions and exactly what is included in the sale. All fittings, furniture and other items to be included should be clearly itemised.
Ensure that your Finance is in place prior to the Auction.
On Auction Day, always check that your copy of the Contract of Sale is exactly the same as the original Auction Contract and that there have been no late changes.
Decide prior to the Auction what you’re prepared to bid, based on your knowledge of other recent comparable sales in the area. Set yourself a limit which you can afford. If you’re the successful bidder at the Auction you’ll be required to sign the Contract of Sale and pay a deposit (usually 10%) on the spot. The deposit can be paid by Personal or Bank Cheque or subject to prior approval with the Agent by Deposit Bond.
It’s important to remember that when buying a property at Auction you’re not entitled to any Cooling-off Period. At Auction, the best policy is to bid loudly and confidently signalling to all other bidders your intent to purchase the property or, should the Reserve Price not be reached, ensure you’re given an opportunity in any further negotiations.
If the Reserve Price isn’t reached at Auction the property is ‘Passed In’ to the highest bidder. It’s extremely important if you are interested in the property to be the highest bidder as this gives you the first right to negotiate a sale. Most properties passed in are sold immediately after the auction to the highest bidder.
Once you’ve found the property you wish to purchase, immediately contact the agent who has shown you the property and advise them of your intention to submit an offer.
You spend significant funds on a new home, therefore it makes sense that you should feel comfortable with your investment. One way of achieving this is to have pre-purchase building and pest inspections done. This means that before signing any contracts, you hire a tradesperson specialising in inspection work to carry out a careful inspection of your property, be it a house or a unit.
Particularly when buying at auction, it’s important to have an inspection done beforehand, even though you may ultimately not be the successful bidder on the property.
When contemplating buying a home you should consider getting your finance approved before beginning your search. Investigate interest rates, the requirements of lending institutions and the different loan products currently available.