buying property: are you confident in undertaking the process?

BUYING A PROPERTY: Are you confident in

undertaking the process?

If you answered no,we can help.

First, make sure you can answer the following questions:

• How do I know what price to pay?

• How do I make an offer?

• What happens at an auction?

• What about the paperwork?

• Time to cough up – how do I pay?

Not sure of the answers?

Let’s dig a little deeper.

How do I know what price

to pay?

A. You’ll want to pay the market value.

mar·ket val·uenoun

“The market value is the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion”

HOW DO I KNOW WHAT PRICE TO PAY?

Remember, the asking or advertised price may be

or

the valuation amount

above

below



So, how do you know what is a

fair price?

The professionals can help!

Ask your agent or a sales supplier to help you access genuine sales evidence.

Then, if you don’t have the skills and time to decide a fair price, a property advisor or buyers’ agent can act on your behalf.


Keep in mind…

The price you pay may not necessarily be the advertised price

What the seller wants and what they will accept may differ significantly


BE AWARE!The selling agent is

acting on behalf of the people selling the home

Don’t rely on them


How do I make an offer?

You found your dream home!

Now you just have to win it!

HOW DO I MAKE AN OFFER?

Remember, not all deals are settled at an auction.

You can make an offer to the seller before the auction.

If the offer is accepted, the property is yours!

Stand out from the crowd by making an offer that is simple.

Sellers appreciate an uncomplicated transaction


Cash is King!If you have cash available or finance

pre-approved to a certain limit, you will have increased bargaining power.


Never offend the seller by making a ridiculously

low offer


If no offer is accepted, the auction

will go ahead.

What happensat auction?

WHAT HAPPENS AT AUCTION?

Auctions can be intimidating and knowing the ground rules

and sticking to them is paramount

Get organisedBuyers should have their homework completed and money sorted prior to the auction.

Ask the seller’s agent for a copy of the Contract of Sale before the auction day


Don’t let the bidding process intimidate you

Avoid panic bidding with a well thought out bidding strategy

Stick to it!



And remember:

Never let emotions to take you into financially

unacceptable territory!

What is the reserve price?

re·serve pricenoun

The reserve price is the minimum price the seller is willing to accept


Once the reserve price is reached

the auctioneer can sell the property



Keep in mind...•Finance should be pre-approved and all building

inspections carried out prior to the auction

•Auctions are not subject to any conditions, for example, buyers cannot bid subject to sale of another property

• Successful bidders cannot change their mind

So, you’ve won the bidding?

CONGRATULATIONS!

What now?

You’re getting close now!

The only thing lying between you and the keys to your dream home is a small stack of paperwork.

WHAT ABOUT THE PAPERWORK?

“Contract of sale”

The contract shows the terms and conditions of the purchase and sale, including price, deposit, settlement

date etc.

(At this point, you should notify your bank or financier to proceed with the loan)


Before signing the contract, make sure the property is in the same

condition as when it was inspected.

Your lifestyle requirements


When you’re signing the contract, you will be expected to indicate who will represent you at settlement

(when ownership of the property changes hands)…



…this person is known as THE CONVEYANCER

The role of the conveyancer is to ensure that there are no hindrances (like existing mortgages, caveats or

writs) to the settlement taking place



Do not use the same conveyancer as the seller

– each party will want independence during the settlement process

WATCH OUT!



Joint Form Of General Conditions For The

Sale Of Land

Generally known as the Condition Form, this form details the rights and

obligations of the buyer and seller during the period prior to settlement.

Crossing the T’s and dotting the I’s

So you’ve had an offer or bid accepted on a property?

It’s time to cough up!

HOW DO I PAY?

The depositA normal condition of sale is that the seller

receives a part-payment from the buyer.

(If the deposit is a condition of sale and is not received by the nominated date, the seller can terminate the contract and seek other offers)

Private property sale

The buyer normally provides a substantial

amount for the deposit

Auctioned sale

The buyer usually has to provide a 10 per cent deposit at the auction

HOW DO I PAY?

The Settlementis the final stage of the transfer of ownership

from the seller to the buyer

(At the settlement the buyer becomes the legal owner. If you have borrowed money the lender usually holds the Certificate as the security for the loan)

The seller receives the money and the buyer is handed the “Certificate of Title” with the new owner’s particulars…

…and the KEYS!

You’re almost ready to move in! Just remember to:

Contact water and gas authorities to change the name on the account

Start planning for your change of address

Organise for your mail to be forwarded from your old address

How long does this process take?

Private sale

Settlement on a property bought privately usually takes between one and three months after the Contract of Sale was

signed by both parties.

Auction

Settlement on a property bought during an auction

usually takes place 30 days after the signing of

the contract.

And finally, remember…

Just after you sign up for the property, you may experience what is called ‘buyer’s remorse’.

Almost everyone experiences this to some degree so don’t be unduly concerned.

This is our natural protective mechanism speaking, and while we should listen to it, we should also respect the decision that we made and accept the things we cannot change.

...every prospective property purchaser should ask themselves

THE BIG

Q

U E S T I O N

S

"How do you know this property will be a

strong performer over time?"

"Are you currently purchasing a property

but feeling unsure about your decision?"

1"Are you confident in undertaking the buying process?"

2 3

3

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“The Big 3 Questions every prospective property purchaser should ask themselves”

buying property: are you confident in undertaking the process?

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