by blake gray, principal at apex estate agents
Whether you’re saving for your first property, actively looking to buy now, or perhaps you’re currently at some other stage of the buying process…this one is for you. This is not a comprehensive guide to buying your first property, though it will cover many of the essentials. FHBs, here’s your blueprint.
Finance Pre–approval Stage
Contact your Bank/Broker to get Finance Pre–approval. Your Bank/Lender will agree in principle to lend you a stated amount based on the information (financial and otherwise) that you have provided them to date.
surveying the market
You’re researching the geographical location(s) in which you’d like to purchase and viewing properties in these locations. Establish a clear list of ‘non–negotiables’ for the type of property you’d like to purchase. Below is a general guide to get you started. Circle the ones that apply to your preferences.
Dwelling type – House | Unit | Townhouse | Villa | House and Land
Ownership type – Freehold | Torrens | Strata | Community
Bedrooms – 1 | 2 | 3 | 4+
Bathrooms – 1 | 2 | 3+
Garage/car space – 1 | 2 | 3+
Property condition – New | Renovated | Original | Other:
Close to – Public transport | Work | Family | Lifestyle amenities | Schools
Other – There are other factors/preferences/priorities to consider. We will cover how to assess and balance these in a future article.
Assemble your Allied Property Professionals (APPs)
As a FHB it is likely that your Unconditional Finance Approval will take longer to come through in comparison to buyers in other categories. Furthermore, it is unlikely that you’ll have an established team of Property Professionals on whom you can rely should time be of the essence – as inevitably it will be. It is for this reason that I would recommend (at a minimum) you seek out reliable persons in the following disciplines ahead of commencing negotiations.
Solicitor/Conveyancer – They will review the Contract of Sale and provide professional legal support throughout the process.
Strata Inspector (if not purchasing a Freehold property) – for review of the Strata information such as defects, compliance, scheduled works and associated costs and other regulations. Often your Solicitor/Conveyancer will be able to assist here, or connect you with a Strata Inspector.
Building and Pest Inspector – For a professional assessment of the physical condition of the property you’re interested in.
making offers and negotiating
Once you’ve found a suitable property that you wish to secure, you’ll need to formalise your interest by way of making an offer (in writing) as soon as practicable. The Agent will require evidence of your offer for their records. Furthermore, placing a complete offer in writing protects your interests. The below template will be useful in formulating your offer(s).
Full Legal Name(s) of Purchaser(s)
Offer amount – $xxx,xxx
Cooling Off Period – 5 Days / 10 Days
Settlement Period – Per Contract (most Contracts are 42 days) / xx Days
Deposit Amount – 5% / 10%
Special Conditions – (should your Solicitor/Conveyancer or Broker advise on their inclusion here)
offer and acceptance plus exchange
Once you’ve successfully negotiated your purchase your offer will be formally accepted in writing by the Agent. The next step is to exchange the contracts (unless you purchase at auction). In order to exchange the contracts you will need to sign the relevant documents (including the contract) and submit payment of your 0.25% deposit. Once the contracts are exchanged (conditionally exchanged) the Cooling Off Period will commence (from the next business day). There are two types of exchanges: 1) Agent exchange; 2) Solicitor/Conveyancer exchange.
Note: The Cooling Off Period is calculated in business days, whereas the settlement is calculated in calendar days. Both of these commence from the date of exchange of the contracts.
due diligence Stage
Once the contracts have been exchanged and the Cooling Off Period has begun, it is time to complete all your remaining due diligence. Here are your primary objectives.
- Booking and review of Building and Pest Report.
- Review of contract by Solicitor/Conveyancer.
- Booking and assessment of Strata Report (if applicable).
- Completion of bank valuation (this will be arranged by your Bank/Broker).
- Source Formal Rental Appraisal (if buying as an investment).
- Obtain unconditional finance approval.
- Ensure the balance of your 5% or 10% Deposit is readily accessible (your daily account limit may need to be increased prior to the end of the Cooling Off Period).
Note: The balance of your 5% or 10% deposit (less the initial 0.25% you’ve already paid) will be due by 5pm on the final day of the Cooling Off Period (should you still wish to proceed with your purchase after all due diligence is completed).
Note: Should you (for any reason) decide to rescind the contract and withdraw from your purchase, your 0.25% deposit will be awarded to the Vendor/Owner.
SOLD STICKER
After the Cooling Off Period has concluded and you’ve paid the balance for your 5% or 10% deposit then the property is officially sold (unconditionally exchanged). Your Agent may ask if you’d like to place the ‘sold sticker’ on the signboard.
PRE–SETTLEMENT INSPECTION
Prior to settlement your Agent will be in contact to organise a Final inspection/Pre–settlement inspection of the property. The purpose of this is to confirm that the property is in the same condition as it was at the time the contracts were exchanged. The Final inspection is typically scheduled to take place 24–72 hours before Settlement.
Note: Any concerns from this Inspection must be immediately raised (in writing) with both your Agent and Solicitor/Conveyancer.
settlement
After settlement has taken place your Agent will meet you at the property to complete handover of keys, remotes and alike. (Please note that your Agent cannot issue you with the keys until both Conveyancers/Solicitors have confirmed settlement in writing and issued an ‘Order on the Agent’ letter to your Agent.) Most settlements are scheduled to take place between 12pm and 3pm.
Note: delays of 30–90mins are not uncommon.
Every Sale is unique. Please understand that this is a general guide only. Rest assured that your Agent, Solicitor/Conveyancer and Broker will keep you informed to the best of their ability at each interval of the above process.
0448 822 123 | bg@apexestateagents.com | apexestateagents.com
APEX Estate Agents are a team of avant–garde real estate specialists, marketing experts, and consummate professionals absolutely obsessed with challenging the status quo. We exist to be the ultimate custodians for our clients, thus improving their quality of life through property – that’s our raison d’être.