The following commentary comes from industry professionals with years of experience. Whilst we believe this information to be very helpful it is provided in a general sense and therefore with regard to your individual circumstance we insist that you make your decisions based on your professional advisors’ advice.
THE ‘GO TO WO’ OF BUYING A HOME OR INVESTMENT PROPERTY
Buying a property is not as scary as it is often thought to be. Not knowing the process can often make something seem more difficult and daunting than it actually is. Therefore what we need to make sure of, is that you know what you are getting yourself into and you understand what is involved. Detailed below is a step by step guide to buying a property, it’s all you need to know, consider and do when it comes to making what is often the purchase of a lifetime.
As you read through, if you need clarification on anything, just call Justin – 0429 820 389
Step 1: Finance
The first thing that you should do before you start to shop around for your new home or investment property is established how much money you have access to. In other words, your borrowing capacity and capability. You can do this by arranging a meeting with your bank or lending company to assess your financial position and work out how much you can borrow. Two reasons why this step is very important is because, firstly, there is not much point finding a house you like and then finding out you can’t get the money to buy it. Secondly, if you have some initial discussions with the bank you will be in a position to move quickly when the right place does come up.
Step 2: What to buy?
At this stage you need to have an idea of what kind of property you are in the market for. Is it Rural? Residential? Country lifestyle? Do you have a family that needs 4 bedrooms or will two do? Is it an investment property? What percentage returns are you looking for? If you have it clear in your mind what is motivating you purchase you will find it easier to identify the right property.
Step 3: Go Shopping!
Call Flemings Property Services and talk to the team and browse through the properties for sale section on this website to see what’s available. If you know what you are looking for and have a price range in mind we can organise inspections of the properties that are in line with your objectives. If you have any doubts or are not quite sure about something call the team for a chat – (02) 63853337
Step 4: Inspect
After you have phoned the office to make arrangements physically go and look at the properties you think might suit you. Make sure you are not in a rush, have a good look and keep an open mind. Rule out the properties that don’t suit and concentrate on the ones that do. Remember you can always go back for a second look.
Step 5: Make an offer
Once you have chosen the property that suits you best and satisfies your needs. Go ahead and make an offer! You can do this by informing Flemings Property Services verbally, or in writing that you wish to offer a certain amount for a certain property. As agents we are obliged to put forward all offers to our vendors regardless of what they are. So even if your offer is less than the asking price, put it forward and see what happens. It’s often a good idea to leave a little bit up your sleeve to allow for some negotiation. When your offer is accepted you then need to inform your bank or lending institution and provide them with details of the property so they can finalise your finance.
Step 6: Building & Pest Inspection
If the property you are buying includes any improvements such as a house or sheds, it is our strong recommendation that you engage professionals to do a building and pest inspection for you to make sure that there are no fundamental problems with the integrity of the structures. There are local people who offer these services. Please note: you should make your offer subject to a building and pest inspection being carried out.
Step 7: Signing of Contacts and Paying of Deposit
Once your offer has been accepted by the vendor and you are happy to proceed a Sales Contact will be forwarded directly to your Solicitor or Conveyancer. Once they have done their checks they will organise an appointment and arrange for you to sign the contract. At this point you will also be required to pay a 10% deposit (10% of the purchase price) to Boorowa Real Estate which will be held in our trust account until settlement.
Step 8: Exchange of Contracts
Exchange of contracts is exactly how it sounds. Your signed contract is handed to the vendors or their representative and the vendors signed contract (which is identical to yours) gets handed to you or your representative. (This is often done via the post for logistical reasons) Before contracts exchange it is VERY IMPORTANT that you have formal and final finance approval and that your checks and inspections have been completed. The reason why this is important is because once the unconditional contracts are exchanged your deposit is not refundable. This means that if you are unable to complete the sale you will lose your deposit. Your Solicitor should have a handle on this but is important that you are aware.
Step 9: Settlement
Settlement is when you hand over the money and get the keys! Settlement normally occurs 42 days after exchange of contracts. The reason for the delay is to allow banks and lending institutions to make the money available and finalise paper work. It also allows the Solicitors and conveyancers to conduct their final checks and searches.
Step 10: Your New Property
You are the proud owner. Congratulations!!
Flemings Property Services