Purchasing real estate can be both an exciting and confusing process. Understanding the terms used (“Under contract, cooling off period, subject to….”). When you come across them for the first time or so infrequently, can be daunting. Being able to build up your understanding and confidence during the looking at property stage, and then the signing the contract stage, can be very much helped by the real estate salesperson with whom you are dealing.
It is always good to remember the term “caveat emptor”- the latin term for “buyer beware” to be one of your mantras when purchasing.
As a buyer, ask questions, do your own enquiries and our real estate salespeople will inform you to the best of their ability. They are experienced and professional staff.
If you are just starting out to buy, go to RESNQ Open for Inspections for properties similar to what you are looking to purchase.
- Check out the local paper or the on-line advertising for open times and days.
- Check out your finances and get pre-approval for a loan so you know what you can afford.
- Check out our new listings regularly at www.resnq.com.au.
- As a buyer, you will want a knowledgeable real estate agent whom you can trust and build a relationship, with integrity.
While you are in the process of finding your home or investment property. Our Real Estate Services NQ salespersons have:
- Extensive experience with first home buyers and seasoned investors alike.The buying process requires guidance, and if the property you are wanting is not right there, rest assured that our Real Estate Services salespeople will often know of property that is yet to come onto the market or, maybe a dormant listing that they can source for you that fulfils your criteria.
- Experience to get the job done in today’s market.Loyalty and tenacity is what gets the job done in a difficult market.That’s why our customers who are going through the selling process stay with us.
Some General Advice:
Buying real estate in Queensland is a long term and rewarding investment. The buying process however,is fraught with add ons that the buyer may not be fully aware. Some costs that maybe/will be included with a purchase of property:
- Finance arrangements
- Stamp duty on purchase price
- Legal costs for the transfer and guidance through the contract by a solicitor
- Pest and building inspection costs
- Pool inspection certificate if required and not already available
- Adjustment of council and water rates to the day of settlement and
- Relocating costs.
When buying a property you should research as much as you can about the area, neighbourhood etc. You can check out comparative sales on line as well as ask our salesperson for their information on comparatives.
Make sure that you are with a reputable Real Estate Services NQ salesperson who can guide you through these hurdles.Choose your Real Estate Services Representative carefully! In the process of purchasing real estate, find a knowledgeable Real Estate Services salesperson who will provide the right information and advice in order to navigate your way through to a successful and fulfilling real estate purchase.
Some further words of advice:
If you haven’t already arranged your finance before setting out to view properties,speak to our Real Estate Services NQ salesperson who will be able to suggest several resources to refer to in establishing your achievable price range for a purchase. A smart buyer establishes the price range for their purchase before they make an offer on a property.
If a loan or mortgage is required for your purchase a “Pre -Approval” statement letter from your lender is an excellent asset to have in improving your negotiation position when it comes time to make an offer on a property. A Real Estate Services NQ salesperson will be able to refer you to a local financial specialist.
Looking for and Finding the right Property
Your Real Estate Services NQ salesperson will be able to help you fulfill your requirements for your real estate purchase. Your original list may be self edited once you establish the necessities and a secondary list of “wants” in your real estate purchase.
Requirements such as location, land size, number of bedrooms, and of course, price, are usually in the necessities list, then follows bathrooms, parking, pools, entertainment areas,fencing,level of modernisation, expected rental return, possibilities for capital gain and investment value.
And of course- you must LIKE the property!
Real Estate Services NQ salespersons will most likely have a list of properties answering to your requirements.Once they have a description of your requirements and price range they will be able to search through these listings and make arrangements to discuss and view those properties that interest you.
I want to make an offer!
Once you have found a property that you want, you will be wanting to make an offer on the property! Your offer will be presented to the seller by your Real Estate Services NQ salesperson.Your Real Estate Services NQ salesperson will conduct all negotiations and arrange for the signing of the contract of sale in Queensland as per the PAMD Act.
When negotiations have been completed and the Contract of Sale signed by both parties and dated, the property is “Under Contract”. The duration of the contract will usually include the 5 day cooling off period, a pest and building report period (if required), a subject to finance period (if required) and then the settlement date will occur usually around 30 days from the date of contract.
All the above conditions are part of the negotiations when the contract is put together and agreed to, by the purchaser and the vendor (seller).
When Settlement occurs, the property has transferred in title to the new owner or purchaser. If a mortgage is involved,the seller’s bank releases the mortgage and your bank or lending authority places a mortgage over the property, if it is a requirement of the loan.If there is no mortgage (ie a cash sale and a cash purchase) there will be no finance clause in the contract and no mortgage release at settlement.The Solicitors appointed to act on the purchaser’s and vendor’s behalf attend to these matters during the conveyance.
The importance of Pre Approval for finance.
Most property purchases are subject to a bank loan to bridge the gap between cash equity and the value of the property purchase.
A mortgage broker is a good first step to talk to for hunting out the best loan and conditions for you.It can be heartbreaking if you find a property you like and then get knocked back on a finance application. It is disappointing for everyone concerned, once the property is “under contract”, you, the vendor and the agent all miss out on the sale.It is worth making an appointment and planning ahead.
Speak to one of our Real Estate Services NQ salespersons to set yourself up for finance to purchase.Shopping around for finance is a good move-find the best conditions that suit you, including interest rates,establishment fees, bank charges,early pay out arrangements and comparisons for investment and interest only loans. Find the one that suits your needs.
Pest and Building Reports
Some vendors have already prepared their property at the time of selling to have a pest and building report completed.
You can use this with the vendor’s approval as a guide for the condition of the buildings etc. Pest and Building report usually cost around $250 each.
Builders and Pest Inspectors will issue you with a fully typed out report with photos.These reports can be discussed with the builder/pest guys, your solicitor and your Real Estate Services NQ salesperson.
Do Your Homework
Ask Questions to get local information. Ask questions about your property that you are purchasing. Your Real Estate Services NQ salesperson will help you with as much information as they have, and can get research on, for you.
You may want to know about the local school, public transport,closest shops,what the neighbours are like, what the local traffic is like, closest medical centre etc.
The Real Estate services NQ salesperson can be a valuable resource for neighbourhood information to help you make your choice confidently.
Am I paying a fair price? The price you pay is market value. Buyers and Sellers set the price of sale by agreeing to sell and agreeing to purchase for a specific price and accompanying conditions on the contract.
If you need to sell your property before buying another one, it is a great idea to go to open for inspections as a way of educating yourself to check if you can buy what you want and that it is available. However, if your present property value is unknown and you are not ready to place on the market for sale, you are not recognised as a ready buyer.Therefore another buyer may be ahead of you to purchase a property as a ready and willing purchaser with an offer that is not subject to selling another property.
The time factor of not knowing how long it may take to sell your property and at what price, is the biggest factor that disadvantages your position. Not many vendors would be willing to accept a contract that is “subject to selling” another property as there are too many variables in the agreement.They may expect a higher selling price if they are going to take the property off the market for you, waiting for you to sell your own.
Also, if price is important, you should always sell your present home before buying another one so that you don’t get pressured to accept a lower offer due to your time restraints for purchasing the next property.
Are there any hidden costs once we purchase a property? Check out with your Real Estate services NQ salesperson, what inclusions are stated on the contract e.g. is the pool equipment included or excluded?
On a new home,ask these questions: is landscaping, path ways and drives, water tanks, clothes lines, dryers,telephone land line, dishwashers, letterboxes,carpets, tiles, solar panels,insulation, fencing etc included in the price?
If you are buying an established home, check out the condition and age of inclusions and structures (the pest and building report supports this information) to see if there may be some costs after purchase as the condition of items continues to depreciate and age, for example ,the hot water system works now, but for how many more years?
It is hard to think of everything that might incur a cost after purchase, but a few items to think about are: internet access,condition of plumbing and electrical, age of inclusions, for example, age of the dishwasher.
Investment in property.
ARE YOU AN INVESTOR?ASK YOURSELF THESE QUESTIONS WHEN YOU ARE CONSIDERING A PROPERTY PURCHASE..
- What is the gross rental return per annum?
- What is the net return per annum?
- What is the interest rate on an investment property?
- What are the loan repayments?
- Do I get advantages by being negatively geared?
- How much deposit do I need?
- How much is the stamp duty?
- How much is insurance? Do I want or need a landlord insurance package?
- What kind of tenant will I get/do I have in the property?
- How long is the lease?How long should it be ?
- When does the lease expire? Will the property be easy to relet?
- What improvements can I do?
- What improvements do I need to do?
- What are the legislative requirements on me for a leased property?
- What deductions and expenses can I claim against my tax?
- What does the tenant have to pay for? What do I , as the owner have to pay for?
- What is the zoning of the property?
- Is it a commercial or residential lease?