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The search for a new home can be both exciting and stressful. It is not unusual
to meet people who have been 'house hunting' for several months. It can be an
all consuming task, occupying your weekends and constantly being at the
forefront of your mind. There are also those people who only look at a few
houses before finding and buying their new home.
There are a few issues to be aware of when buying property as well as a couple
of tips to make the process a little easier and perhaps more productive.
Being Prepared
Before you start your search there are a few questions you should have answers
to:
- What type of property are you looking for, and what are the prerequisites?
It may be a house, townhouse, unit, duplex or even acreage. How many bedrooms
do you need? Do you need / want a pool, en-suite, DLUG, fenced yard etc. Are
you prepared to renovate? Does it need to be close to schools, shops, public
transport? Only you know what your 'needs' and 'wants' are.
- What is your budget? Knowing how much you can borrow or how much you are
comfortable spending is essential. Everybody is working to a budget. If you
will be obtaining finance it helps to speak with your financier sooner rather
than later. A simple phone call to your bank, lending institution or mortgage
broker will get the ball rolling. Having finance approval in place can expedite
the whole process.
- What area are you looking in? Narrowing you search down to a specific area
will help you immensely. It will allow you to focus your attention on that
particular area.
- Do your homework. Prices vary from suburb to suburb and street to street.
Before you commit to buying a property you should be familiar with prices in
your chosen area. This awareness will allow you to make an informed decision
and one you are comfortable with.
Buying your new home
Okay, the search may be over, you have found a suitable property. What do you
do next?
Assuming the property is 'For Sale' at a price, as opposed to a property going
to 'Auction' you should make an offer.
It is common practice for an 'offer' to be formally presented in contract form.
This contract is a legally binding contract. Understanding the process is
important. In Queensland the real estate agent not only negotiates the price
but also does up the 'Contract of Sale'. This contract should be a standard
format put together by the QLD law society and the REIQ. Once the terms have
been agreed upon by the seller and the buyer it is signed and forwarded on to
the respective solicitors.
Within the 'contract of sale' there are provisions to make the contract subject
to and conditional upon a satisfactory Building and Pest inspection as well as
a finance clause. If you are unable to obtain finance within a specified time
frame, on terms satisfactory to yourself, the contract can be terminated
without penalty. It is advised you read the conditions and understand the terms
of the contract. Speak with your solicitor for further clarification.
There is also a mandatory 'Cooling off' period of five (5) business days. The
buyer has the right to terminate the contract within this period if they so
choose. There is a termination penalty of .25% of the purchase price. This
equates to $250 for every $100,000.00
If you purchase a property under 'Auction' conditions it is usually an
unconditional contract. That is, you do not have a 'cooling off ' period, nor
is the contract subject to Finance or Building and Pest inspections. You own
it.
The standard settlement period for residential property is 30 days. This is
negotiable.
Buying a property, whether it is your first of your fifth can be a stressful
process. At REOL we understand and appreciate what you are going through. We
aim to make the process a little easier and a lot more enjoyable. If you have
an questions or concerns we are on hand to help. The 'Buyer Registration' is
the most effective way of allowing us to contact you if and when a suitable
property is listed. Alternatively give us a call.
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