Step 3. Decide if you are going to obtain a Pest and Building Report
Before you purchase any property – in particular a new home – it is important that you
receive a copy of a pest and building report form a qualified inspector. Please note that
this report is a complete list of defects of the home, and is very different from the feature
brochure that you receive on the home, and most times misinterpret the report, eg. The
home is 34 years old and is in need of new roof tiles. Roof tiles last approximately 35 years
and need replacing on every home of that age.
The point to remember here is that all homes at one time or another require maintenance,
and that this is known as a capital improvement.
Step 4. Notify your bank of your purchase address and details.
A pre-approval of finance from your bank or lending institution needs to be in place before
safely proceeding with your property purchase, however many banks will approve you in
principle yet may require a valuation. Don’t be alarmed if your bank or lending institution
requests a valuation by a registered valuer. This is normal practice of lending institutions,
which confirms the agreed sale price. If you are intending to buy at Auction, all the above
mentioned must be in place. Auction day is final. If you turn up to bid and you are the
highest bidder past the reserve price, (On market price) you are the instant owner awaiting
settlement of the property.
Step 5. Don’t forget to include stamp duty funds into your final numbers
Step 6. Meet with the agent and provide all details for sign off with the owner.
Once agreement on price, settlement conditions, etc has been reached with the vendor
the sale can proceed. An exchange of contracts is the only way to actually buy or sell real
estate. This is achieved by signing the contract of sale which is the processed by the agent
with all legal parties.
Preparation is the key. Understanding the steps of sale and have everything in place,
which is imperative to reaching property goals. Whether you are considering purchasing
this property or another in the near future in need of advice, feel free to contact myself or
any of our team with questions that you may have.