Buying a property, especially for the first time, can be an overwhelming experience. The Realestate Agency team makes the process as stress-free as possible by:
- Giving you the lowdown on current market conditions
- Helping you select the right location and property for your needs
- Negotiating with sellers on your behalf
- Advising you about finance
- Guiding you through the legalities
f you’re looking to buy your dream home, the Realestate Agency has the local knowledge needed to help make your dreams come true
Our top property-purchasing tips
Many people don’t realise they have a credit file that indicates how creditworthy they are. Before doing anything else, request a copy of your credit file and do everything possible to improve it before making a loan application
Calculate what amount it’s sensible to borrow. You may want to consult an accountant about this
Many banks and mortgage brokers provide home loans. Do your research to find out which ones you’re most comfortable dealing with and the terms and conditions attached to the home loans they offer
Apply for pre-approved finance before you begin your search
Aside from the purchase price, there are significant costs involved in buying a property. These can include:
Lenders’ Mortgage Insurance: If you haven’t got enough money saved for a 20% deposit, you can expect to shell out a minimum of $10,000 for a policy that will protect the lender if you default
A building and pest inspection: It’s wise to get this done on any property you’re considering buying. Expect to pay somewhere around $600 - $800 for this.
A strata report: If you’re considering buying an apartment, you’d be foolish not to invest $250-$300 to have an expert examine the strata scheme’s financial reports
Conveyancing fees: You’ll be up for $1000-$3000 to have a conveyancer transfer the legal ownership of a property to you
Stamp duty: This is levied at approximately 4.7% in NSW, which means you can expect to hand the State Government $47,000 for every $1,000,000 you spend on a property
Moving costs: These can range from several hundred to several thousands of dollars
You’ll save yourself a lot of time if you ask yourself the following questions before you start inspecting properties:
What kind of property do I want? A free-standing house? A terrace house? A townhouse? A unit?
Am I happy to renovate or do I want something in good condition?
How close does the property need to be to public transport, shops, my work, my friends and my family members?
What developments and infrastructure are planned for the area I want to buy in? (The local council should be able to supply this information)
For your offer on a property to be valid, you must present it in writing as part of a contract. There’s no need to worry about this process – we can work with you to ensure your offer is valid and submitted correctly.
It’s then up to the seller to accept or reject your offer.
It’s common for the seller to ask for a higher price than you’ve offered, so don’t panic if there is some haggling. There may also be some negotiation about things such as the settlement period at this point
Just as the seller can accept or reject your offer, you are free to reject or accept their counter-offer
If you and the seller do agree on a price, try to act quickly. (There may be other interested buyers and you don’t want them swooping in at the last minute)
You can either buy a property at auction or via a private sale
If you want to bid for a property at an auction, you’ll need to have the contract reviewed by your solicitor before the auction. You’ll need to be ready to provide a 10% deposit if you win the bidding. It’s also advisable you have unconditional bank approval because once the hammer falls, you’re legally obliged (barring exceptional circumstances) to go through with the purchase
If you buy via a private sale, you get a cooling-off period of five days. But be warned, you’ll have to hand over 0.25% of the sale price if you pull out during the cooling-off period
At the fall of the hammer in your favour, you have purcahsed the property with no cooling off period.
Your bank or mortgage broker will request an independent valuation of the property within 14 days of the contract date (i.e. the date on which the contract has been signed by both you and the seller). You may have financing issues if the purchase price of the house is lower than its valuation
The Realestate Agency recommends you get independent legal advice from a qualified solicitor or conveyancing clerk before committing to any contract
Now, you can pop the champagne and celebrate your purcahse!