Let us make the process of buying your next property a smooth one.
Buying a property, whether it’s your home or an investment property can be stressful. And because it’s not something you do every day, most people appreciate a trusted adviser to help them through the process.
You’re in good hands
At One Agency Inner West, you won’t be dealing with the office junior. Lindi Kim Sing personally works with every property buyer to make the big decision of buying a property seem easier.
You’ll get the benefit of Lindi’s 20 years of experience and knowledge of the property market. With an office in Lilyfield, and as a Balmain resident for many years, Lindi has an ‘insider’s’ edge on buying properties in the Sydney’s Inner West.
Here are Lindi’s tips on Buying your Home or Investment Property
Before you make the Offer
Secure your finance
- Do your research to work out how much you’ll need and how much you can borrow at what rate. A mortgage broker may be helpful.
- Arrange for pre-approval from your bank or lending institution.
- Have your initial deposit ready (payable within one business day from the contract date).
- Have your balance deposit ready for transfer after the seller accepts the contract (payable within one business day of the unconditional date of contract).
- Usually your deposits need to be 5% of the purchase price. Be ready to negotiate this when you sign the contract.
Line up your Legal Support
- Do your research on who might offer you the best conveyancing service and be clear on the rates they charge. It helps to ask friends, neighbours and people you know who have recently bought and sold their property.
- After your offer has been accepted, nominate a solicitor or conveyancing clerk. This is part of the documentation process.
Plan your Settlement
- You’ll need to negotiate your settlement date in the initial offer stage.
- The settlement date will depend on you having your finance ready, having done all the necessary building and pest reports, and any other conditions you may include with your offer.
- If you’re also planning to sell your current property, we recommend you have your real estate agent already lined up. Or if your circumstances allow, have it sold already or ‘under contract’.
- Your settlement period can be negotiated when you sign the contract. Usually they’re around 30 days. It all depends on you and the seller’s requirements.
Prepare to Make an Offer
- For your offer on a property to be valid, you must make and present your offer in writing as part of a contract.
- Work closely with your real estate agent. Let them know as soon as you plan to make your offer. They can help you follow the correct procedure to ensure your offer is valid and submitted correctly.
- Once you make your offer, it’s up to the seller to accept or reject your offer. Or they might make a counter-offer.
What happens once your Offer is Accepted?
Before you break out the champagne, there are a few steps to ensure your offer is successful.
It’s crucial that you fully understand, and have in place, your financial, legal and settlement details prior to signing any contract. We recommend you get independent legal advice from a qualified solicitor or conveyancing clerk before committing to any contract.
Once you’ve signed the contract you are immediately bound by it. Once the seller signs the contract, the property becomes ‘under contract’.
The date on which the contract is signed is known legally as the ‘contract date’.
In Australia, it’s standard practice for a bank or lending institution to request an independent valuation of the property within 14 days of the contract date, especially if you’re borrowing more than 80% of the purchase price.
At 5pm, one business day after your contract date, the property becomes yours – and any ‘risk’ associated with the property also passes onto you. It’s essential that you arrange insurance for your new property as soon as possible. If you’re buying an apartment, the body corporate covers the building’s insurance, but you need to cover everything inside the apartment (for example, fixtures and contents).
It’s also your responsibility to arrange for a building and pest inspection. This is generally a condition of the contract and is usually done within seven days of the contract date.
Be ready to settle as soon as the seller is ready to accept your offer.
There’s a cooling-off period of five days from the contract date (this includes the contract date itself if it’s a business day). Within this period you, the purchaser, can terminate the contract for any reason. However, as the termination of a contract will attract a penalty of 0.25% of the purchase price, you’ll need to think carefully about taking this step.
What if your Offer is Rejected?
If the property owner rejects your offer, regroup and keep your cool. You can submit another offer.
Talk to your real estate agent about why the offer was rejected, and why a counter-offer was not made by the seller upfront.
Making an effective Counter-offer
- The process of offer and counter-offer is a standard part of negotiating a property sale.
- Once you make a consequent offer, the seller might come back to you with a different sales price or conditions. Carefully consider their counter-offer, and either accept it, or make a counter offer of your own.
- Buying a home can be stressful. It’s good to be prepared. Know your financial limits and stick to them. That way you avoid making a decision you might regret.
- Ask your real estate agent for advice. If you’ve chosen one you can trust, they’ll help you make the right decision.
What to keep in mind if you’re Buying Property at Auction
- Anything that happens at the auction is final. So, if you’re bidding at an auction for a property, make sure you have your finance, legal and settlement requirements in place before the day.
- Register with the Auctioneer as a bidder before the auction starts.
- If you’re the successful bidder, be ready to own your home (once settlement goes through).
Now, you can pop the champagne cork!