The five steps to buying a property

In previous articles, we shared with you tips on buying a house from research to your deposit. In this article, we are going to share with you five steps to buying a property from inspection to settlement.

>> READ MORE: HOW TO BUY YOUR FIRST HOME IN 2020

1. Inspection

You’ve done your research and have an idea of where you’d like to buy your property and have your deposit saved and you’re ready to go.

Now comes the fun part – looking at properties.

The first step is to consult your real estate agent to organise inspections of properties for sale in the areas you’ve identified.

When it comes to the inspections, it pays to take a pen and paper to make notes about each property so you can compare them afterwards.

At the top of each page, note the property address, the date and time of your inspection, the listed price and any key features that piqued your interest. Also, note any special conditions such as extended settlements.

When inspecting a property it is easy to get caught up emotionally. Because you’re not looking at the house, you’re looking at whether it suits as your home. The minute you step into the house you’re picturing it filled with your belongings, your family and testing it to see it feels like a home, your home.

This is fine. It is totally normal and an important part of the inspection process. But, you also need to take a step back and look at the house cosmetically, not emotionally.

Inside the house you want to look for:

• Signs of damp such as mould on the walls or ceiling and rotting carpet
• Structural damage such as cracks and warps
• Obvious damage to walls and ceilings
• Good water pressure – test both hot and cold taps
• Good water drainage – check it drains away well as slow draining water could be an indication of a blockage
• Working lights

Outside the house you want to look for:

• Stability in fences and any weaknesses or faults
• Adequate water run-off, draining away from the house
• Gutters are intact and unblocked
• The legality of fencing around any pools using the Pool Safety Council

2. Inclusions and exclusions

It sounds silly but you must ask the agent to confirm the inclusions and exclusions in the sale of the property.

Fixtures aren’t always included and you don’t want to be one of those buyers who moves into their new house only to find what they thought was included in the sale, actually wasn’t.

Generally, fixtures are anything in the house that is screwed, glued, bolted, plumbed or nailed into the structure.

To save any heartache, ask the agent to confirm if the following are included or excluded:

• Carpets
• Hot water system
• Air-conditioning systems
• Stove
• Ceiling fans
• Antennae
• In-ground plants/trees
• Mailbox
• Clothesline

Also, ask the agent to confirm the inclusion of any chattels.

Chattels are freestanding, moveable items and sometimes in the condition of sale, they are included. However, they have to be noted in the contract.

Items like washing machines, dishwashers, light fittings, gas bottles, sprinkler systems or pool and spa equipment.

>> READ MORE: FIVE TIPS TO BUYING A HOUSE

3. Deciding on and making an offer

You’ve found a property and you want to make an offer.

Now you have to decide the price and conditions of that offer. To make the best, informed decision regarding your offer, research when the property last sold and for how much and the recent sales prices of other properties in the area or get a professional valuer to give you an independent valuation.

A vendor will also consider conditions as well as a price offer so keep that in mind.

Once you have decided on the price and conditions you want to offer, next you have to officially put an offer in.

Putting an offer in avoids any confusion that can arise from verbal negotiations. On your behalf, your real estate agent will present your offer to the vendor.

Under the REIQ Contract of Sale there is a provision for the contract to be subject to finance, building inspection and/or a pest control inspection if required. But buyers and vendors can negotiate and agree to vary the contract’s standard conditions.

Make sure you get any building or pest inspections and your financier arranged within the time frames set in the conditions. If you feel you can’t, seek immediate legal advice from your solicitor because an extension can be requested but it is up to the vendor to agree or deny it.

4. Conveyancing

Now comes the nitty-gritty legalities.

You will need a qualified solicitor to assist you with the conveyancing. Conveyancing is the legal transfer of title from the vendor to the buyer, a process that requires searches of the titles office, zoning and certificate of rates and incurs costs for transfer of duty, registration fees and professional services costs.

These searches are standard to identify any planning changes, issues or problems and determine whether there are any restrictions, encumbrances or outstanding taxes.

>> READ MORE: WHAT TO LOOK FOR IN A REAL ESTATE AGENT

5. Settlement

As you approach your settlement date, keep in contact with your solicitor to make sure there aren’t any issues.

Then once the property has been vacated, contact your real estate agent to arrange a pre-settlement inspection. This is to make sure everything is as the contract states.

Your agent will then receive notification from your solicitor and the vendor’s solicitor once settlement has occurred and the keys will be released to you.

And then comes the fun part – moving in!

If you have any questions about the above, contact our friendly team at Baileux on (07) 4829 4816.