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Buying Tips

Excitement, pleasure, pride – these are the feelings that buying a property can bring, whether it is your first home, your next home or an investment property.

Choosing the right property for you comes down to knowing what you need, knowing what you can afford and knowing exactly what’s available at the time you are ready to buy. It means the property you finally buy is like the one you had in mind when you started out – or as close as possible.

What you need to know

The type of property you buy should reflect the purpose of the purchase and the lifestyle you are planning for your future. Will you be living in or renting out the property?

If moving in, consider the following:

  • Household occupants and whether they will change
  • The need of each person in the household now and in several years time
  • The sorts of local amenities required and how close they should be
  • The sorts of work and leisure activities in which you engage
  • The length of time you expect to live in the home
  • The features you want in the home, in order of importance.

Think about these questions and discuss them with anyone else who should be involved. Priorities are important because you may need to compromise on some points. Jotting down the answers will produce a checklist of your real future needs, which can become your guide to the sort of property you buy and where you buy it. To assist you with the process, use the Property Wishlist Checklist visible in the sidebar.

Knowing What You Can Afford

As a buyer, you need to do some research into what you want and what you can afford. The team at the Loan Market can help you establish your borrowing capacity. They have access to hundreds of home loan products from most major banks and lenders. In just on FREE home loan consultation, they can tell you exactly how much you can borrow from a range of banks. They can also provide an overview of any fees and charges associated with your loan.

To arrange a FREE home loan consultation with your local lending manager contact contact Ray White Palm Beach.

Knowing What’s Available

There are hundreds of properties being offered on the market so if you’ve worked out what you really want and can afford, you’ve got a head start.

Newspapers are a good place to begin. The Internet is fantastic. Simply go to our property search facility and browse you way through properties that suit your individual criteria, some even have virtual tours.

Visiting particular suburbs, start going to open homes and auctions. Soon you will get a feel for what is available, the number of buyers in the market (demand) and what different properties are worth. Before long you will feel ready to buy.

With the right amount of research and preparation, you’ll be sure to find the property to suit your needs in no time. And, remember, if you need more information on buying, selling or managing property there is no better point of contact than your local Ray White Real Estate office. Happy house hunting!

Methods of purchase

The great majority of properties are sold by two popular methods – private treaty and auction.

Private treaty – In a private treaty sale, both with our without a publicised price, you make an offer through an agent to the seller and, if necessary a negotiation occurs until you and the seller reach agreement.

Auction – A sale at an action occurs in one of three ways:

  • Before the auction itself, if the seller accepts an offer
  • On Auction day, at the ‘fall of the hammer’ to the highest bidder
  • After the Auction if bidding does not reach the seller’s minimum or ‘reserve price’ and the seller accepts an offer during the post auction agency period

In the case of the first two scenarios, the buyer is required to sign the contract on the spot and pay the 10% deposit, which will go into the agents trust account. The seller’s contract must be accepted as written and there is no cooling off period. In the third case, some of the terms and conditions of the contract may be negotiated depending on the buyer’s requirements. These are very important differences to a sale by private treaty.

In the first and second instance, the sale has now been made, so it is crucial that you consider the following when buying at auction:

Be sure you:

  • Register to bid. Most states now require the registration of bidders before a bid can be accepted. This includes a requirement for photo identification at time of auction.
  • Are certain that the property and its locality is right for you
  • Have had your loan formally approved and are able to pay the 10% in an agreed manner
  • Set your upper price limit and rigidly stick to it. If necessary, get someone else to bid for you. Remember, you are bidding for the property not to win against another bidder. There is always another property.
  • Know exactly what is and is not for sale with the property and whether any immediate renovations are required
  • Have had any necessary building or pest inspections carried out
  • Discuss the contract beforehand with your legal adviser and accept the terms and conditions

More Information on Purchasing Property

For more information on purchasing property please give your local Ray White Palm Beach office a call!!