Preparing for purchase

In this instalment of Real Real Estate Advice, Sales Executive Kiki Bermudez discusses a couple of tips to consider when preparing for the purchase of a property.

Kiki’s key suggestions from the video can be summarised in the below dot points:

• The best way that you can show the agent and the owner that you are interested in the property is to request a contract.

• When buying a house (or semi, duplex etc.) be sure to ask if there is a building and pest report available. If not, ensure that you get one done – it is worth the peace of mind.

• When buying an apartment (strata buying, company title etc.) be sure to ask if there is a strata report available. Again, if not, be sure to get one done. This will provide insight into how the building is doing financially and maintenance wise.

• Utilise the services of a good solicitor or conveyancer to look over the property contract from a legal perspective. They will make sure that everything is in place and fair.

• Ensure you have your finances in order. Speak to a reputable mortgage broker or your contact at the bank to find out what you can afford and organise pre-approval. Remember that the standard deposit is 10% of the purchase price.

If you have any questions regarding any of these points, or anything else for that matter, please contact us and we will be delighted to help.

Below is the full transcript of Kiki talking about preparing for the purchase of a property.

Kiki:

“Today I want to talk about preparing to purchase a property. Now, there are a number of things you need to be mindful of in actually doing that and make sure that you tick all the boxes.

So, If you are interested in a property, the best way for you to let an agent know that you’re interested in something is to request a contract for sale of land. Now, legally speaking before we even go to market with the property, we have to have that available, so ask for that and I’m going to know that you’re hot to trot, which is great.

Now another thing, it depends on the property that you’re actually buying. So, if you’re looking to buy a house or a semi or a duplex, the other thing you are going to ask for is a building and pest report. Sometimes, those are readily available upfront to potential purchasers. For myself, we always get an independent report, that way it is really easy for you to obtain that information. In the event the agent doesn’t have that available, it’s wise to ask the agent ‘have any other buyers actually gone down the path of conducting their own?’ and often we can put you in touch with that builder that did the inspection and you can get the information that way. Usually you have to spend a little bit of money to get that report, but it is well worth having that peace of mind with spending this kind of money.

On the flipside, there is strata buying or company title buying or apartment buying. What you want to ask for from the agent is ‘is there an Independent Strata Report available?’. I always have an independent Strata Report available for my buyers and typically, it is pretty much always free. A lot of agents, however, haven’t started that, in which case it isn’t unusual to commission your own report and actually spend the likes of $99 up to $300, but it’s more along the lines of several hundred dollars on the report. That’s going to give you the information about how the building is being maintained, what the money looks like in the actual building, and just the maintenance. Those are really critical things to make sure you are mindful of.

Secondly, it is really critical to get a fantastic solicitor or conveyancer on board to actually review the contract. Weather you buy something for sale or at auction, you have to get that contract reviewed and they will look at it for you from a legal perspective. They are making sure that the clauses that are in there are fair and equal and if there are any proposed amendments to the contract, that is all sorted out between your solicitor and the vendor’s solicitor, prior to you actually signing that contract.

Very, very importantly, if you are buying a property, especially in the Sydney property market where it is very pricy, it is critical to have your finances in place. The standard deposit is 10% of the total purchase price. Sometimes people ask for 5% as property prices have gone up quite a bit, you sometimes can get away with that. You also want to make sure that you talk to a reputable mortgage broker or your contact at the bank to get what we call pre-approval in place so that way you know your limits with how much you can actually spend. So, if you are going to auction, you know at what point you have to stop bidding and equally if you are buying something for sale, you know what your best price is to pay. I am under the assumption when people are making me offers, that they are qualified, that they have their finances in order and they are prepared to sign a contract.

So, those are my few critical tips in making sure that you’ve got your ducks in a row so you can purchase property in Sydney. If you have any questions, don’t hesitate to contact me and please stay tuned for future updates from myself.

I look forward to helping you and being your real estate advisor. Thank you. Bye for now.”