Information For Buyers
Buying a home will probably be the biggest purchase you will ever make. It is essential to be fully aware and informed of the process involved, the options open to you and the issues to consider. If you are buying a property a thorough knowledge of the process cannot be over emphasised and as a purchaser it is essential to acquire the best advice. Sabre Real Estate pride ourselves on our ability to offer the best advice.
When thinking of buying a home it is advisable to begin by evaluating your financial capacity and calculating how much you can budget to spend before you start viewing properties. It is advisable to seek professional financial advice in this regard. If you are considering borrowing money to finance the purchase it is essential to seek the best financial advice from all of the lending institutions. The person best placed to do this is often an independent, reputable professional mortgage broker.
Having formulated your budget you will be in a better position to determine the general particulars of what properties are attainable for you with regards to size, location etc.
It is important to factor in all the costs and outlays that will be in addition to the purchase price such as stamp duty and Conveyancing fees when formulating your offers on any particular property. In situations where works are required to the property, it is important to have reliable estimates from an appropriate professional of how much the works are likely to cost, particularly if they are immediate essential works.
Price and budget are important, of course, but they’re not the only factors in buying a house. How the location meets your needs is very important too. When you find a property that interests you, investigate how it is serviced in terms of transport, schools, shops and other facilities.
Proximity to all of these amenities will have a bearing on the quality of life the property offers to you, and consequently it will have a bearing on the value you will place on the property. It will also have a bearing on the future re-sale value of the property.
It is always wise to visit the local shire office and inspect any development plans for the locality. This will highlight any major local projects planned for the area which could effect your decision to buy or the future re-sale value of your property. Sabre Real Estatel can help with this and can also inform you of the prices other houses in the same location recently achieved.
Having narrowed down your search with regards to budget and location, you will now be ready to start viewing houses. If there is no “home open” advertised, you will need to contact the selling agent to arrange a private viewing.
When viewing a property, try to imagine it empty, with none of the clutter that the current owners have in it. Try to imagine how it might be remodelled / extended or improved to better suit your needs, it is often helpful to seek expert advice in this regard. Try also to imagine the property at night, or in bad weather, in order to get a realistic overall impression of what the house will be like to live in.
It is advisable to take a stroll around the neighbourhood at various different times (e.g. during the day, at night and at weekend). This will help you determine if there is any undesirable local activity. It is also worth noting the neighbouring properties and their condition.
In addition to any expert or professional opinions that you may require with regards to the structural condition of a property or the potential to extend a property etc, it is also advisable to bring along at least one family member or friend for a second opinion. A professional selling agent will facilitate this access for you.
These factors all combine to help you make a sensible purchase that is right for you.
Making an Offer
Once you’ve decided that you like a property enough to seriously consider purchasing it make your interest known to the agent. There is nothing worse than missing out on a property you have your heart set on.
When making an offer it is important to be aware of the following:
- The agent will submit all written offers to the Seller.
- The property remains on the market while all offers are considered. Even if your offer is the first one submitted, it does not guarantee it will be accepted.
- The seller has the opportunity to make a counter offer to you and you will be given the opportunity to accept or re-counter.
- The agent is not obliged to give you another opportunity to increase your offer.
- An offer is not legally binding on either party until the buyer and the seller have agreed on terms and signed the offer and acceptance document.
Please be mindful of the following costs associated with buying a property:
- Stamp Duty
- Conveyancing Fees
- Loan Application Fees
- Optional Building Inspection
- Optional Termite Inspection
Methods of Sale
Private Treaty is by far the most common method of sale in Western Australia. A property for sale by private treaty will usually be advertised quoting an “Asking Price”. The asking price is the starting point for negotiations and provides interested parties with an indication of the price region that the vendor is expecting to receive as the final selling price. A seller is not obliged to sell the property merely because offers have reached the asking price. If you are interested in buying a property that is for sale by Private Treaty you should place your offer directly with the selling agent who will in turn advise you as to whether there are currently higher offers on the property.
The agent will advise the seller of all offers placed on the property and our agent will conduct a series of negotiations with all interested parties and invite counter offers.
Upon signing the contracts, a settlement date is set at a date suitable for both you and the seller. This is the date you pay over to your settlement agent/solicitor the balance of the purchase price and you become the new owner of the property.
Sale by Public Auction involves potential buyers assembling in the same place at a specific time and date and then bidding publicly for a property.
There will be a “Reserve Price” placed on the property prior to Auction. The seller will sell the property to the highest bidder once bidding reaches the reserve price. If bidding does not reach the reserve price the seller is entitled to pass the property in from the auction, alternatively, the seller may accept the highest bid on offer on the day. Often when a property is passed in from the auction the agent will conduct private negotiations after the auction with the person who placed the highest unsuccessful bid in an effort to achieve an acceptable price to both the seller and the potential buyer. Therefore if you are interested in a property it is important to be the highest bidder.
Private negotiations may also take place with further under bidders but the highest bidder will get priority.
The successful auction bidder is required to sign a binding contract immediately after the auction and to pay a deposit to the Sellers agent. The deposit is normally paid by bank draft or personal cheque. It is advisable that prospective buyers arrange the necessary finance prior to attending an auction.
Buying a property is obviously a very important decision for anyone and it is important to ensure that you are properly advised in all aspects of the process. The job of a professional property sales advisor is to give clients relevant information to allow them to make the right decision on all aspects of the property transaction. In this regard, Sabre Real Estate are best placed to offer you professional advice and in turn to make the buying process as stress-free as possible for you.