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Buyer Tips

This can be very challenging and stressful when buying a property by becoming emotionally involved you are competing against other buyers and being governed by your finances. But by being organised and doing your research, becoming informed on the process you are then in the best position to become a successful home-owner.

1. Decide Where You Want To Buy:
- Make a list of all areas where you would like to purchase (transport, schools, sport, etc.)
- Make a list of essential and non-essential features that the property must have

2. Research The Market:
- Decision of where you want to live
- Understanding the real estate market in your area
- Keeping track of what properties are selling for
- Homes meeting your essential features list and budget
- Sign up for free market report, free area report and join DRR Club

3. Review Buying Requirements:
- After your market research you will have a better idea of affordability and your essential requirements
- You may have joined the DRR Club if not sign up and this will assist you with new listings to suit your requirements

4. Organise Finance Approval:
- Make sure you organise your finance’s before you seriously look at properties to buy.
- You will know your how much you can spend and you can make an offer as soon as you find your dream home
- Don’t forget to factor in costs for legal fees; stamp duty; insurance; loan application fees

5. Inspecting Properties:
- When you find a property of interest attend the advertised open for inspection and have a thorough look around
- Unable to make designated open time call agent to arrange a private inspection.
- For security reasons, photo ID is required for anyone attending a Dianne Ray Realty open for inspection and private inspections
- Make several visits to property before deciding to buy the property.
- Note what you like/dislike – raise queries
- Permission from agent to take photographs

6. Legal Documentation:
- When you find the perfect property, seek a copy of the Section 32 from the agent and make sure you are happy with the easements or covenants
- Seek council rates and other important details
- Contract of Sale lists any conditions the seller may have such as settlement dates, etc
- Consult with your solicitor or qualified conveyance to get advice on the Contract of Sale and Section 32 Statement before purchasing the property

7. Building and Pest Inspections:
- Organise building inspection where a qualified building inspects the property
- Recommended to engage an inspection service with full professional indemnity insurance for protection against missed problems that must be fixed
- Have Pest Inspection against concerns of termites – organise with seller’s agent
- Note, all Building and Pest Inspections are at your own cost

8. Making an Offer:
- Properties sold by private treaty or by negotiation. You need to make an offer if you want to buy the property
-  For Sale by Auction – you can make offer prior to auction if the sellers have instructed their agent that they are happy to consider prior offers, but the offer would have to be accepted by the seller’s before auction. The sellers still may decide to take the property to the scheduled Auction day, even after considering prior offers
- Be warned – offering a lower price and being prepared to negotiate upwards does hold the risk that if the seller has several offers they may decide to accept the higher offer without giving other parties the opportunity to offer more
- Seller may reject an offer for reasons other than price including conditions placed on offer. For example a seller may reject an offer conditional on a longer settlement period if another potential buyer offers a similar sale amount but can settle sooner, or the seller may accept offer where the finance is not conditional
-  You do have the option to engage a buyer’s advocate or other professional to bargain for you. Fee for this service will apply

9. Deposit:
- Successful purchaser pays deposit at time of sale
- Deposit 10% of the sale price but may vary
- Confirmation of deposit in contract of sale attached to Section 32 Statement - agent to clarify
- Deposits are held in the agency’s or solicitors non-bearing trust account until settlement

10. Pre-Settlement Inspection:
- Purchasers entitled to inspect property in the days before settlement
- Ensure property is in the same condition when you signed the contract and all is included in the Contract. (e.g. dishwasher, pool equipment)
- Pre-settlement inspections should be organised through the seller’s agent

11. Home Insurance:
- It is highly recommended you take out building insurance effective from the date the seller signs the contract – this is to safeguard their interest in the property as well as your own

12. Settlement:
- Your legal representative will instruct you on the procedures for settlement. This is an official process conducted between legal and financial representatives of the buyer and seller
- All outgoings such as rates and other charges are adjusted between both parties at settlement
- Once settlement has taken place the seller’s legal representative will send written confirmation to the seller’s agent to confirm settlement has been finalised. The agent will phone the buyer’s that settlement has taken place; the buyer can then come and collect the keys from the agency

This all sounds very unsettling – put your full trust into Dianne Ray Realty – Phillip Island because we are here to help you all the way through this buyer process.