Helping You Move- with Richard Carter

Finding Your New Property

Purchasing residential real estate can be a very exciting process; however it can also be a confusing and stressful time for prospective buyers.

This purchasing guide is designed to help you navigate smoothly through the sometimes turbulent time that is buying a property.

We hope that we can assist you in finding the right property and look.

Choosing The Right Property

We would all like to buy the type of home splash around on the pages of celebrity magazines, and for most of us this is unlikely due to our financial position. So first things first. We recommend you speak to your finance broker. However if you prefer to use your bank directly, at least run your situation past a broker as they have access to more lenders and products potentially saving you money both up front and over the course of the loan. Plus in most cases they are a free service to you. If you would like to be put in contact with one please let me know.

Once you know your budget, the next is to consider is size/ location or both most important to you.

We recommend that you narrow your search down to a couple of suburbs only and make a list of the 10 “must haves” you want in your next property.

With these things in place you are armed for a good property hunt!

Making An Offer

When you have found the property that you wish to purchase, it is critical that you understand the steps that are involved in securing the property.

Firstly, make your intention known to the agent straight away. Many past Purchasers have missed out on properties by a matter of days, even hours. The agent will then require you to make your offer in writing.

General Tips

If you want to make an offer, be certain that the following items have been arranged or confirmed:

Pre-approval of finance from your bank or lending institution.

Have a settlement agent in mind.

Have your initial deposit ready.

Have an idea of settlement date.

If necessary, have your own property sold, or be in the process of hiring an agent.

The Contract

The agent responsible for the sale of your desired property will either sit down with you to go over the Contract of Sale, or send it through to you along with instructions as to how to correctly fill it in.

Here you will insert your offered purchase price, the time frame for Finance, or Building and Pest Inspections (if required), and any special conditions that are necessary. All contracts in Western Australia for the sale of land include the addition of “the joint form of general conditions 2011” (currently) and should be provided with a copy of the contact by the agent.

The agent will then present your offer to the seller, and if the offer is accepted and signed against by the seller, the property becomes “Under Contract”, and that date is said to be the “contract date”.

You should obtain:

Independent legal advice (solicitor/conveyancer)

Independent valuation of the property (usually arranged by your bank/financial lender)

Offer, Negotiation, Acceptance

In Western Australia, all offers must be in writing via an “offer and acceptance” to constitute a contract. When the approved contract is completed, the agent can then contact the seller and start the negotiations. The seller can then do one of three things:

1. Accept the offer - in which you are bound by the contract.

2. Reject the offer - you can then resubmit another offer.

3. Counter the offer - the seller puts down their counter terms and price, in which you can then either accept or counter.

Please remember that people make decisions at different speeds. It is best to start thinking about your next move prior to hearing from the agent.

Many negotiations start to slow down when the price gets closer, and it may be better to pay that extra $5,000, which on a $400,000 loan, has a difference of $8.15/week at 7% interest over a 25 year loan, rather than holding off for another property and looking for another 3 months.

Buying at Auction in Western Australia

If you‘re intending to buy at auction, all the above-mentioned must be in place. Auction day is final. If you turn up to bid, you MUST register with the Auctioneer before the auction commences. If you are the highest bidder and you have bought the property “under the hammer”, you are the instant owner awaiting settlement of that property. Remember many buyer will chose to wait out this in an effort to find out the sellers expectations on price, this however often backfires as many buyers find themselves in more competition for the property and ultimately pay a higher price after the auction.

Initial Deposit

Payable within 3-5 days of the contract acceptance date - when the Buyer and Seller have agreed and signed on the terms and conditions of the written Contract.

Building & Pest Inspection

It‘s up to you as the purchaser request these at the time of putting an offer forward and to arrange a Building and Pest Inspection for the property you have a Contract on. It is important to note that these are at the buyers expense and are carried out in an effort to ensure the property is structurally adequate and free from termite and timber pests. The standard time frame for these inspections is to be undertaken is by 5pm, 7 days from the contract date.

Valuation/Finance

Don‘t be alarmed if your bank or lending institution requests a valuation by a registered Property Valuer. This is standard practice in all states of Australia especially if you‘re borrowing more than 80% of the purchase price of the property. The Valuation Inspection will be arranged by your bank/lending institution usually within 14 days of the contract date.

Insurance

Please note, that it is common practice by all lenders to required complete insurance policy on the property from the time of settlement.

Property Access

Once a contract has been agreed on. The seller must provide access for any inspectors/valuer’s to inspect the property in accordance with the contact conditions (usually organised through the agent). However buyers are limited to access only for the purpose of the final inspection prior to settlement. Most agents will not grant additional access to the property on any other request until the contract conditions have been satisfied.

Settlement

7 days prior to settlement you will inspect the property to ensure it has remained the same since the time of offer; check that all conditions are met such as electrical is working.

Settlement will be arranged by the settlement agents, Landgate and banks. You are not required to be there, and will be notified usually with 30 minutes of the appointed settlement time advising that it has been effected.

Keys And Moving Date

The keys for the property will be generally be provided to you at 12pm the following day of settlement. This is due to the seller rightfully being able to stay in the property until this time with the only exception being the property vacant at settlement or if the property is tenanted, in which other arrangements will be discussed. This is also the day to arrange for the removalist and any other deliveries to occur.

Summary

Preparation is the key to successfully purchasing a property.

Understand your rights and have everything in place. If you follow the advice in this document, along with that of your solicitor and agent, you will be on your way to securing the right home for you.

If you have any further questions, please feel free to call me any time.

Richard Carter

0438 374 255 • 08 9331 9700 richard.carter@acton.com.au

Thank you

I strive to assist as many people move in our area. And take great satisfaction in doing so. Ihope that this booklet has been helpful for you and if you have any questions please feel free to call me anytime.

Best Regards,

Richard Carter

ACTON Southern Suburbs

Kardinya Office: Suite 4 Kardinya Commercial Centre, corner of South Street & Gilbertson Road, Kardinya 6163 WA • Tel: 9331 9700

Success Office: Unit 9 Cockburn Gateway Shopping City, 824 Beeliar Drive, Success WA 6164 • Tel: 9414 4444

www.acton.com.au