Buy with Ray White

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:

  • Household numbers and whether they will change
  • The needs of each person in the household now and in several years time
  • The sorts of work and leisure activities in which you will engage
  • The local amenities required and how close they should be
  • The length of time you expect to live in the home
  • The features you want in the home

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

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.

Private Treaty

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:

  • Before the auction itself, if the seller accepts an offer
  • On auction day, at the ‘fall of the hammer’ to the highest bidder
  • After the auction, if bidding does not reach the seller’s minimum or ‘reserve’ price and the seller accepts an offer during the post auction agency period

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:

  • Conduct your due diligence before the auction – get the contract checked by a professional, arrange a building and or pest inspection, and if strata titled, request a strata report of the property.
  • Know exactly what is and what is not for sale with the property and whether any immediate renovations are required
  • Have your finance prepared – ensure you have the 10% deposit as a bank cheque, personal cheque, cash (not preferable) or deposit bond. Make sure you have funds approved by a broker and you are in a position to bid on the property.
  • Have several inspections of the property – it is always wise to view the property on several occasions so you know that this is the right property for you.
  • Arrive at the auction early – in NSW you need to be registered in order to bid. You will need photo ID (Australian drivers licence or an Australian passport) to prove your identity. If you are bidding on behalf of any other individual or entity, you need an authority to bid, which preferably should be organised prior to the auction.
  • All registered and ready to bid – once registered you will receive a bidding card with an exclusive number that is required when bidding. Use your bidding card to allow the auctioneer to accept your bid. Upon registering to bid you will also receive a copy of the ‘Bidders Guide’.
  • Have a plan – most buyers have very little idea of what to do when bidding at an auction. Any plan is better than nothing, but the best plan is to participate, you cannot buy the property without bidding. Get in early, even if that is a little lower value than you are prepared to pay and get used to the process. Make sure you don’t go over your top price by getting overawed by the moment. Pick your highest bid and stick to it.
  • Passed in means NOT SOLD – ‘passed in’ means that the bidding fell short of the vendor/s reserve and they will negotiate from the last bid with the highest bidder. The highest bidder is offered, as a courtesy, the first right to negotiate with the agent after the property is passed in.
  • SOLD! – even if you don’t buy at your first auction, you will be better informed and confident for the next. If you are the highest bidder, congratulations! You will now need to sign the contract and provide your 10% deposit. The vendor/s signs their contract and the contracts are exchanged. You will receive possession of the property once settlement has taken place, subject to any tenancy.
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