Buying a Property FAQ's
What factors determine the purchase price of the property you are buying?
While a number of factors come into play, in the end a property's worth is judged by only one figure - how much is somebody prepared to pay for it at the time?
The most significant considerations for pricing a property are recent sales and current competition.
The former is a review of what other properties of this type have sold for, while the latter takes into account similar homes that are presently on the market.
Your LJ Hooker real estate agent can provide you with information and advice regarding both of these aspects of the house-hunting process through competitive market analysis.
It is also import to take note of the prevailing market conditions, as these can generate a genuine insight into short-term trends and help prospective homebuyers gain a feel for what they will need to pay to achieve their goals.
If high buyer demand exists at a time when very little property is actually available, prices are likely to increase.
'Seller motivation' - the reason the current owner is attempting to offload the property - might also play a major role in determining the final cost. If a quick sale is required, vendors have little choice but to accept the best offer at the time without the luxury of waiting for a better deal.
I am considering employing a buyer's agent to help find my ideal property. What exactly is their role and how do they get paid?
A buyer's agent is employed by a buyer to establish a shortlist of properties that meet their specific requirements or preferences.
Once this list has been developed, the agent takes the clients to inspect the selected properties and negotiate the purchase price on the buyer's behalf - or possibly do the bidding at auction.
There is a fee for using a buyer's agent, but the main advantage is that it saves the buyer from having to spend time looking at unsuitable properties.
Why should I carry out a final inspection on the property I am buying?
No matter how excited you are about purchasing your new house or unit, it is prudent to undertake a final inspection to ensure that the property is still in the same condition it was when you negotiated the deal.
You should check that all the fixtures and fittings included in the contract are still present and that the previous residents did not cause any damage when moving out of the property.
How many homes should I inspect when looking for a property?
We recommend looking at enough properties to gain a comprehensive understanding of the marketplace.
This will provide you with the required knowledge to work out if the property you are interested in buying represents value for money, while also helping you to determine which location appeals to you the most.
It is important to feel confident about your eventual purchase, so viewing properties online is a good way to research the market efficiently.
Alternatively, your LJ Hooker real estate agent can give you comprehensive market analysis on the property, with details of similar properties currently for sale or in the same area.
What is the "cooling off period" in a contract?
A cooling off period is usually where one party - usually the buyer - is given a short amount of time after signing and exchanging the contracts to decide if they definitely want to proceed.
The seller is generally bound to the contract and prohibited to sell the property to anyone else during the cooling off period.
The rules of cooling off periods differ between the states, so take care to check the details that apply to your location with a solicitor or conveyancer.
Looking for more Property Buying Tips?
- myMarket Report - Your National and Regional Property Report
- Your Complete First Home Buyers Guide
- Open House Inspection Checklist
- Open Apartment Inspection Checlist
- Your Home Your Mortgage
- Home Loan Glossary
- Your Complete Moving Guide
- Understanding the Buying Process
- Different Ways to Buy a Property
- Buying a Property - The Hidden Extras
- How to Work Out the Budget You Can Afford
- Where to Research the Find the Best Property