What you need to know
The type of property you buy should reflect the purpose of the purchase and the lifestyle you are planning for your future. Will you be living in the property or renting out the property?
If moving in, consider the following:
Think about these questions and discuss them with anyone else who should be involved. Priorities are important because you may need to compromise on some points. Jotting down the answers will produce a checklist of your real future needs, which can become your guide to the sort of property you buy and where you buy it.
It is important to understand that real estate agents are engaged by the seller. They work for their clients, the sellers, to get the best price possible for their properties and to sell them as quickly as possible. However, whilst owners are their clients, buyers are their customers and it is the agent’s business to match them up. This means finding the ideal property in the price range you can afford.
Knowing what you can afford
As a buyer you need to do some research into what you want and what you can afford. The team at Loan Market can help you establish your borrowing capacity. They have access to hundreds of home loan products from most major banks and lenders. In just one free home loan consultation, they can tell you exactly how much you can borrow from a range of banks. They can also provide an overview of any fees and charges associated with your loan.
To arrange a free home loan consultation with your local lending manager contact us at 02 4982 7800 or e-mail firstname.lastname@example.org.
Knowing what’s available
There are thousands of properties on the market so if you’ve worked out what you really want and can afford, you’ve got a head start. Begin by going to open homes and attending auctions. Soon you will get a feel for what is available, the number of buyers in the market and what different properties are worth. Before long you will feel ready to buy.
Methods of purchase
The great majority of properties are sold by two popular methods – private treaty and auction.
In a private treaty sale, both with or without a publicised price, you can make an offer through an agent to the seller and, if necessary, a negotiation occurs until you and the seller reach an agreement. Keep in mind, it is important to know that the agent is working for the seller to get the highest price possible.
As a buyer, you will either accept the predetermined price or, more likely, start by making a lower offer. The agent will handle the negotiations which will be aimed at raising the offered amount to the seller’s predetermined price or, possibly, higher if more than one buyer is interested.
A sale at an auction occurs in one of three ways:
In the case of the first two scenarios, the buyer is required to sign the contract on the spot and pay the 10% deposit, which will go into the agent’s trust account. The seller’s contract must be accepted as written and there is no cooling off period. In the third case, some of the terms and conditions of the contract may be negotiated depending on the buyer’s requirements. These are very important differences to a sale by private treaty.
In the first and second instance, the sale has now been made, so it is crucial that you consider the following when buying at auction:
Be sure you: