Understanding the Buying Process

There are many things to consider when buying a home, and if you haven’t bought a home in a long while, things may have changed! Here are 10 things to consider when buying a home:

Budget
What is your budget? Speak to your bank, broker or financier to determine what you’re comfortable spending and how best to structure your loan.

Type of Property
Once your budget is determined, you need to decide on the type of property that best suits your needs (House, Apartment, Townhouse, Pet Friendly etc).

Location
Decide on your preferred location, keeping in mind that your budget will influence both the location and the type of property you choose.

Research
It’s now time to do some research on the location and type of property you chose. Look at recent sales and current listings, make time to attend open inspections and auctions.

The Offer
When you locate a property you like, email the agent with an offer and ask them to present it to the vendor as soon as possible. All offers must be presented to the owner, so expect to hear back from the agent soon after. If you are buying at auction, it’s a good idea to review the ‘Bidders Guide’ which can be provided by the agent or found at the ‘Office of Fair Trading’ website. However, buying at an auction means that there is no “cooling off period” as there is with a conventional sale. Here in South Australia, there is a 2-day cooling off period from the time the purchaser and vendor sign.

Acceptance of Offer
If your offer is accepted, you will need to sign the contract and pay a deposit by cheque once the 2-day cooling off period has expired. The deposit is usually 10%; in some cases this is negotiable. Remember, until each signed contract is received the property is technically still for sale.

Sale Contract
The contract is then sent to the each party’s solicitor/conveyancer. Once each party has signed, the contract paperwork is formally exchanged in readiness for settlement.

Inspections & Reports
Before committing to buy, it’s best to research the property. If it’s a Torrens title property, it’s a good idea to carry out a building and pest inspection to make sure the property is sound and in acceptable condition. If it’s a Strata title property, a Strata report is essential as it contains information about the building’s history and the strata’s financial position. It also pays to get a copy of the Strata Minutes for the AGMs which help inform you about the nature of what has occurred over time with the Strata complex. A good point when buying into a Strata is to find out how many owner-occupiers compared with renters are in the group.

Settlement
Settlement usually occurs anywhere from 30-60 days but can be brought forward or extended if both parties agree. During the time between exchange and settlement you should contact your financier to make sure your loan is on track. If your purchase is where you’re planning to live, you should also start planning your upcoming move – book a removalist and speak to the various services companies like electricity, gas, phone/internet etc to prepare to disconnect and reconnect such services.

Finally, move into your new home, sit back and enjoy!