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Buyers Guide to Purchasing

Fast Reference:


 

Prior to purchasing

All prospective purchasers are advised to familiarise themselves with the market in which they intend to live or invest within. All prospective purchasers should complete their own due diligence before entering into contract.

 

Finding your new home/investment

It is of the utmost importance that you carefully consider exactly what it is you are seeking and want from your new home or investment as this is the most important step in the real estate process. Remember, finding the right home or investment will affect you for the entire duration of your ownership.

Finding your new home is simply a click away, find a property. All you need to do is enter any criteria you may have, this may be narrowed down by suburb, rental amount, number of bedrooms, number of bathrooms and number of car spaces. Once a property or multiple properties have been found that are of interest to you, it is strongly recommended that you next inspect the home/s before you submit a written offer to purchase. If you cannot make an inspection for whatever reason you may send a representative on your behalf to view.

 

Inspecting the home

Booking an inspection through Inspire Real Estate Solutions is simple and easy. Upon finding a home or investment that could suit your needs and requirements you will need to book an inspection through Inspire Real Estate Solutions. You can send through an inquiry from www.realestate.com.au or you can use the online twenty-four (24) hour purchaser inspection reservation system. It is essential that all prospective purchasers complete this registration process. Any group inspection times advertised online are subject to change and only become active inspections after registration. Direct contact with the Licensed Agent can also be employed to register your intention to view a home available ‘for sale’. Contact can be made by telephone, sms, email or facsimile number listed on the advertisement.

 

Submitting a written offer to purchase

You have viewed an Inspire Real Estate Solutions property and would now like to submit an offer to purchase the property. Please find copies of our ‘Contract of Sale' available for download (EXAMPLE ONLY). All written offers will be completed and filled out by Inspire Real Estate Solutions and once signed & initialled by the prospective purchaser it will be submitted in person (if possible) to the Vendor. All written submissions will be taken either at the office, by facsimile, email, or finally by Australia Post.

 

Contract – process & timeframes

Check twice over that the contract is completed correctly including all attachments and supporting documentation. One of our licensed agents will check your identification to ensure all details are true and correct. Next, Inspire Real Estate Solutions will contact the sellers and arrange a suitable time to meet up and present your written offer to purchase. In the event that the seller is not reachable by a reasonable amount of road travel the written offer to purchase will be scanned and emailed or sent via facsimile to the seller. This process will continue until a contract of sale is formed or one (1)/both parties agree to terminate negotiations.

 

Accepting & Signing off on contract of sale

The owner/seller of the real estate has accepted your offer to purchase. The seller will sign off on the contract of sale and initial where it is appropriate. A telephone call will be made to you to advise and congratulate you of your new purchase. It is at this point that insurance should be taken out over the property just purchased. All initial deposits should have or will need to be paid at this point to secure the home. The initial deposit must be paid within timeframes that are in compliance of the terms of the contract of sale. All deposits are held in the Inspire Real Estate Solutions Trust Account.

 

Deposit Payments

A sale deposit (Initial or Balance) is a sum of money that the purchasers are recommended to pay to secure their new home or investment.

 

Building & Pest Inspections

It is essential that all prospective purchasers complete a building & pest inspection either before an Auction or if applicable, during the nominated period (conditional phase) of a Private Treaty contract of sale.

 

Finance & Valuation

Finance should be arranged through your Bank, Financial Institution or Mortgage Broker prior to looking for a property to purchase. This will give you, the purchaser, a clear idea of exactly how much you can spend on your next real estate transaction. You’ve found a property and a contract has been formed. The signed contract will be sent to your Mortgage Broker, Bank or Financial Institution. It is at this point that a formal Valuation will be conducted by the Bank or Financial Institution. Once the valuation is complete and the lender is satisfied you meet their criteria a formal notification will be issued, notifying the borrower of their approval for finance to complete the purchase of their chosen piece of real estate.

 

Settlement

Property settlement is the final stage of a real estate sale when the purchaser completes the payment of the contract price to the vendor and takes legal possession of the property.

‘Settlement Period’ is the amount of time between when contracts are exchanged and the property settlement.

From the day the contract is signed on a property, the settlement period begins. Prior to this, the Vendor (Seller) has the ability to negotiate a settlement period with the Purchaser/s.

Many sellers have no special preference for when settlement occurs. If the purchaser/s are also flexible then you will probably agree on 30, 60 or in some circumstances, 90 days. A 30 day settlement is most common. This normally gives the Seller and Purchaser enough time to organise the financing, paperwork, moving, cleaning and all other details that need to be resolved before settlement.

What happens on the day of settlement varies from State to State and is usually handled by a solicitor or conveyancer. If applicable, the Bank or Financial Institution will authorise payment of the purchasers (borrowers) loan money and payment will be made to the Vendor. The purchaser/s or their chosen legal representative will authorise the Vendor to collect the deposit money from their agent, where it has been held in trust. The Vendor and the Buyer will reconcile any adjustments that were pre-paid or accrued during the settlement period (such as rates). The Buyer will receive the title of the property and the Vendor’s Solicitor or Financial Institution will organise for the Registrar General to register the transfer and home loan (if applicable). The mortgage will be noted on the Title until the term of the home loan is completed. Both parties will advise the agent in writing that settlement has occurred and that the Agent can release the keys to the Buyer.

During the settlement period, Communication is everything. It is of the upmost importance to talk to your agent, solicitor/conveyancer, and finance provider about your expectations regarding your settlement period. The two (2) major things that might occur are:

  1. Missing the Settlement date: Missing the settlement can be very serious. For example a buyer who is unable to settle can be forced to pay interest on the amount they owe for the property. Usually, the defaulting purchaser will pay 10% a year, calculated daily. This is negotiable, as the payment date can be extended or interest payments waived if the Vendor agrees.
  2. Changing the Settlement period: Once the settlement date is set and the contract is signed, your options narrow sharply. You may still be able to change your settlement date, but only if the Purchaser agrees. If for some reason this becomes necessary, give as much notice to all parties involved as you can. Remember, the Purchaser does not have to agree to the Sellers new terms. For the Seller, to protect themselves it’s best to agree to an appropriate settlement period right from the ‘get go’.

The purchaser has the option to arrange a pre-settlement inspection to allow them to see the property prior to finalising the payment. This is when issues may arise, that in some circumstances delay settlement. The Vendor should make sure the house is looking as it did when the purchaser last saw it.

A common mistake. It is not unusual for settlement to be delayed by hours or even a day after the nominated time as everything is organised with solicitors, banks/financial institutions and real estate agents. If you are the seller and you are moving to another home that settles on the same day, think about organising alternative accommodation elsewhere that night ‘just in case’. In the case of the purchaser, avoid organising furniture delivery for the same day and think about doing it the next day.

 

Changing address

Please update your address where necessary. This could include work, children’s schools, banks, department of transport, insurance companies and superannuation funds. Please also note to advise Inspire Real Estate Solutions of your new home phone number.

 

Utility connection

It is the responsibility of the purchaser to ensure gas, telephone, power and internet are connected into their name/s.

 

Insurance

A cover note insurance policy should be taken out by the purchaser immediately after a contract is formed. This will protect the asset throughout the course of the contract period.