Buying Tips


Buyers Tips

Why should I stick to an Agent?

Your best option of getting the property you love is to be well connected with the active listing/Selling Agent in the area you want to live.

This agent will know when new properties will be released to the market.  Engaging an agent will allow them to get to know you and your circumstances, when it becomes time to presenting an offer to a seller, a greater degree of confidence is built and demonstrated to the seller. 

A RE/MAX Extreme agent will guide you to buy well and avoid any problems. 

It is respected in the real estate industry, if you have engaged an agent to assist with buying a property, introducing yourself to another agent by say of phoning or attending another agents home open, your agent will not be able to negotiate on your behalf.  It is in your best interest to allow your RE/MAX Extreme agent to represent you in your purchase, thus earning a fee for their service as part of the conjunctional. 

Real Estate hints and tips – buyers

Renting versus Buying

The decision to purchase a home is exciting and a major investment for your future.  There is only so much of it to go around and this is why property investment is the top choice and desire for most Australian families.

One of the greatest benefits of home ownership is putting money into something that you call your own, knowing that the monthly payments are going towards your home equity.  Over the medium to long term, property values in Australia have historically proven to be an outstanding and secure form of investment.

Finance for your purchase

Buying a home is one of the most expensive and significant purchases, so it makes sense to plan your finance before you purchase.  Count the cost of your financial commitments, include your mortgage repayments.  It is advised the total should not exceed a maximum of 35-40% of your monthly income. 

Experienced mortgage brokers and banking institutions will help compare interest rates and home loan options.  The amount you can borrow is measured by your income, your financial commitments, your cash deposit and any additional expenses in the purchase of the property.  You will be asked to provide evidence of your deposit, taxable income and your commitments. Having this prepared will assist your lending institution to establish how much you can borrow to complete the written finance application.

 

 

To build or Buy Established?

Consider the pros and cons of building a new home or buying an established home.  There are many benefits from buying established homes and that is why property purchases choose established over building new. 

New Builds –

  • Choice of floorplan
  • Choice of finishes
  • Choice of building materials
  • Builders written warranties

Established –

  • You get to see what you are buying
  • Chattels included (carpets, window treatments etc)
  • Move in after settlement
  • No progress payments

Buying a Block of Land

Buying your own block of land to build your dream home can be an exciting time.  Most blocks of land are chosen for their price and size, it’s important to research your block because there are a number of other issues to take into account.

  • Orientation
  • Location and quality of surrounding homes.
  • The shape and size of the lot
  • Easement and covenants
  • Boundary pegs

Your RE/MAX Extreme agent will have a range of vacant land available for sale in Perth’s suburbs.

Choosing the Right Property

We all have unique tastes, lifestyles, requirements and influences that will determine the property we choose to buy.  A young couple will have different wants, needs and lifestyle to an elderly couple.  This young couple may decide to purchase a small unit as a step into the property market and as it appreciates in value, a larger deposit can be realised to purchase a larger home down the track.

 

 In consultation with your RE/MAX Extreme Agent you will have the knowledge to choose a property within your price range and the style you can afford.  Completing this guide will assist you RE/MAX Extreme agent. 

Make a list of 3-5 must haves

  • Location
  • Number of bedrooms
  • Size and number of living areas
  • Maximum budget

Make a list of the ‘would like’ to haves

  • Air conditioning
  • Gardens
  • Décor

The Agreement to Purchase

Once signed by the seller(s) and the buyer(s) the Offer and Acceptance Form becomes legally binding.  RE/MAX recommend the use of Real Estate Institute of Western Australia (REIWA) Offer and Acceptance form along with the Joint Form of General Condition for property sales.  These forms were prepared by the Law Society of Western Australia and REIWA.  Together they form the contract and clearly states the obligations of both the buyer and the seller.  An important clause in the JFOGC is if final settlement and possession is delayed by either party unnecessarily then the aggrieved party has the right to levy a penalty rate of interest until final settlement is complete. 

The purchasers cash deposit will be refunded in full if any of the conditions on the contract cannot be fulfilled (finance not approved within the time frame allotted).

Speak to your RE/MAX Extreme agent and accept the advice provided to allow sufficient finance approval time and settlement periods.  Typically from acceptance of your offer to purchase, settlement dates are between 45-60 days but can be longer or shorter depending on the individual needs of the parties. 

Negotiating your purchase

When you find your ultimate property you would have most likely done your research by attending home opens, viewing properties on real estate websites and speaking with your agent.

This will give you a fair idea of the price range negotiation will start at.

It would be in your best interest to not waste time because statistics show that properties listed at an asking price closest to their ultimate price, sell in a short amount of time.  Remember not all agents and owners overprice their homes.

An agreement to purchase real estate must be made in writing.  Your RE/MAX Extreme agent will guide you through the Offer and Acceptance from.  It is usual and expected to offer a deposit with a signed offer.  The larger the deposit, the more seriously the seller will interpret your offer.  Make as large a deposit as you can afford.  5-10% of the sale price is typically accepted.  The choice to accept the offer or to counter offer is made by the seller and does so by inserting the price that is acceptable. 

It is advisable: make your first offer your best offer and this will avoid tempers coming frayed.

Important:  By definition, a bargain implies, one winner, one loser.  The best agents price properties spot on so there are win/win negotiations.  The best way for a buyer to see the value in the purchase price is to compare the property against others and to negotiate your price based on its competition. 

Ask yourself, what price would you pay knowing that if you missed out would not be disappointed because you have put your best effort forward?

Buyer Feedback Ranging Explained

Most buyers today have done their research and with property information on had buyers will see value thus being prepared to pay for it.  Buyer feedback ranging allows the buyer to view a range of properties and make an informed decision that they feel is reasonable about the purchase price to start negotiations.

This method of pricing has advantages for the seller also, the buyer inquiry is increased, and this increased market demand determines the price. 

Insurance for Property Owners

A home is a valuable investment.  When you make the commitment to purchase your home it is important to consider taking out home insurance to protect your investment.  Life can sometimes bring unexpected incidences. 

Personal Insurance comes in 2 categories

Accident, sickness and unemployment insurance covers the policy holder and provides a monthly income in the event that you are unable to work.  This is particularly suitable for the people concerned about whether they have or not have financial security to cope with any loss of earnings through illness, injury or redundancy. 

Mortgage Protection policy pays a lump sum benefit payment to beneficiaries if the policy holder passes away.  This could add security to your family with the mortgage paid off.