It’s Saturday morning and you’ve just viewed a property that you absolutely love. You’re trying hard to contain your excitement so the Real Estate Agent doesn’t smell the desperation, or if you’re like my wife, you’re dancing in the backyard of your potential purchase singing, ‘I love this place, I love this place, can we please buy it!’ and your partner’s in the background awkwardly gesturing for you to stop and play it cool in front of the agent. It’s clear you want to make an offer, so what’s the next step of the process, what do you do now?

Here are 3 things to consider before parting with a hard earned deposit.

Call Me

No.  Seriously… call me. I’ll be able to do an RP Data report and find out crucial information about the property, like how long it’s been on the market and if there’s been any price reductions, etc. This information usually helps you strategise the best way to make an offer on a property. I can represent you as a buyer’s agent and negotiate with the Real Estate Agent, because we all know how scary they can be.

Call your Solicitor

You should be sure to request a copy of the contract from the agent and then forward that to your Solicitor or Conveyancer for review. They will read the contract to ensure it’s fair for both parties, not just the vendor. This is an important step, as you don’t want to sign contracts and agree to terms without reviewing them. Missing something crucial could end up costing you 10s of thousands; so leave it up to the professionals to read through the fine print.

Get Inspected

Unless the property you’re buying is brand new, then I would always recommend you engage a building inspector to carry out a Pest and Building Inspection. This usually costs between $500 and $800, but will ensure you have peace of mind that a certified inspector will be thoroughly checking the property for any pest infections or building defects.\

Once you have agreed on a purchase price, you can usually sign contracts with a 10 – day cooling off period. During this time I arrange a bank valuation on the property to obtain formal loan approval. As that’s happening you can also have the Pest and Building inspection carried out and your Solicitor can review the contract and make changes as necessary. After the 10 – day cooling off period, you will then need to make a 10% deposit via a cheque or Deposit Bond (this is a guarantee from the bank that you will make the 10% deposit)…

Be sure to cross your ‘Ts’ and dot your ‘Is’ when buying property. Tune in next week when we talk about ‘How to Prepare when Buying a Property at Auction.’ 

Success depends upon previous preparation, and without such preparation there is sure to be failure. Confucius

Thank you for reading