Tips for Buying

Each week we publish our free weekly e-zine, "Virtual Realty News", so if you want to keep up to date, click here to subscribe to our free VRN E-Zine now! Buying a property can either be a prosperous and enjoyable experience or a stress filled nightmare! There are several things you can do to try and influence the process positively.

Follow the Rule - RWM

In most cases it is always better to sell before you buy. Consider the possibility of finding your dream home and not being sure that you can purchase it, because you can't confirm that the money is definitely available. It is always safer to know. Don't bet on the idea that you will 'probably' sell your house in time, know it is sold and know what you can afford. It will save a lot of heartache in the long run.

Starting Out -RWM

When you start looking for a property do your research. Prepare a short list of preferred areas and we are more than happy to forward to you sales information that will assist you in your decision making process of where you want to live. Keep in mind the affordability and your accommodation requirements. Research the sales in your preferred areas. Inspect every property in the area so that you can get a feel for the price range you are buying into. Attend auctions that are relevant in your area. Contact all of the sales agents in your area. The agents will be able to offer you advice, keep you updated with properties of interest, and alert you to new listings before they hit the media. Read the Sydney Morning Herald on Saturday mornings and local papers (for Mosman, it is The Mosman Daily, which comes out on Thursdays). Start early and make the most of your Saturdays, because if you work a nine to five week, Saturday may be the only day you have to look. (generally properties are not open on Sundays.) If this all sounds too much, use the Internet. It really is a buyers best friend! Each agency has a web site, use them! Some agents do not update their Internet site as regularly as we do, so try subscribing to the Home Alert Service on the Sydney Morning Herald's Web Site.( www.domain.com.au ) Once you put in your criteria, its database will automatically email you when new property becomes available. After you get the email you can take a Virtual Inspection of the property online, from a direct link (no wafting through endless web pages to find what you want!) Let your mouse do the walking! Of course, we also thoroughly suggest you subscribe to our free weekly e-zine "Virtual Realty News", which is the best information source in the business! (Yes we are also biased!)

When You Have Found The One -RWM

Make sure you are buying in the best possible location you can afford. Look at the environment, the neighbouring properties, and the street appeal. Do your research. Ask the local council about any development applications. If a new development is being built next door, you will definitely want to know! If you are buying a unit, get a strata report to see if there are any special levies or improvements to the block on the way. Find out if the property is under a flight path, near a train line, on a late night bus route etc. Make sure you inspect the property at different times of the day and the week. This way you will definitely know if there is going to be a noise problem. Also, analyse the surrounding amenities to see if there will be a problem, like a church, which may cause parking problems on Sundays. Remember parking may be difficult on weekdays, check peak hour parking facilities. To find out this information you needn't go inside the house every time, just drive past at different times and days to see what's happening.

Get The Dirt -RWM

Speak to the neighbours. If you can't find the 'dirt' on the property they'll certainly be happy to tell you!

Formalities -RWM

If you decide that you are really keen on the property, organise a pest and building report - not everything is visible to the naked eye. Floorboards might be infested with white ants, or there could be structural damage. If you can see faults, bring in a qualified builder or engineer to advise on repairs. Get a couple of quotes so you know the ballpark figure, don't underestimate. If the property passes all of these check points and still really interests you, ask the agent to send a copy of the Contract for Sale to your solicitor or conveyancer. If there are any special conditions you would like to be included in the Contract for Sale, make sure you tell your solicitor (well before an auction). Or if it is a private sale, talk to the agent who will probably be able to negotiate a deal with the vendor.

Price Guides -RWM

By now you will be sure that the property is what you want, or don't want! Now it's time to do some extra research on price. Phone agents after the auctions of other properties in the area, and find out what prices have been achieved (available as part of Virtual Realty News each week). It gives you a good indication of market value. Attend a few auctions beforehand and get a feel for what happens and how to bid effectively. Or, if you are a Virtual Realty News subscriber, request a free property report.

Auction Day -RWM

Arrange your finances, so that you can write a cheque with some allowance for price variation on the day. If you are the successful bidder at the auction you will be required to sign the Contract for Sale and pay a 10% deposit. Personal cheques are acceptable.

After the Sale -RWM

Your deposit will usually be held in trust in an interest bearing, at call account until settlement. Interest is usually divided between you and the vendor and distributed after settlement. The time between exchange of contracts and settlement is usually six weeks, (this depends on any previous conditions you have requested). Use this time wisely, you can arrange your architect, builder, removalist, or interior designer to make their arrangements. Keep in mind that the vendor only has to let you have access to the property for a pre-settlement inspection and they will be organising a lot as well, so they may not want to be interrupted too often. Speak to the agent, he/she maybe able to organise some access, depending on how flexible the vendor is.

Settlement Day - RWM

On settlement day, your solicitor or conveyancer may request that you have a pre-settlement inspection before settlement takes place. This is to ensure that the property is in the same condition as when you last inspected it and that all the inclusions are as per the Contract for Sale you signed. The lawyers will finalise all of the legal and financial matters. After settlement has occurred and the agent you bought the property through has received confirmation of the settlement of the property from the solicitors, you can pick up the keys and go to your new property! A couple of days later you will receive your cheque from the agent for half the interest earned on the deposit in your new mail box! This finalises the process of the purchase of your brand new home!

Register for Virtual Realty News - RWM

If you have any questions regarding this information, please feel free to contact a member of our staff. We are happy to answer all of your questions.