{"id":3814,"date":"2018-03-12T17:33:07","date_gmt":"2018-03-12T17:33:07","guid":{"rendered":"https:\/\/www.mortgagesmoneyandme.com\/?p=3814"},"modified":"2023-06-28T11:03:06","modified_gmt":"2023-06-28T11:03:06","slug":"buying-your-property2","status":"publish","type":"post","link":"https:\/\/mortgagesmoneyandme.com\/buying-your-property2\/","title":{"rendered":"Buying your property"},"content":{"rendered":"
You have found the property you want in the location you love\u2026 now what?\u00a0 You need to put your offer to purchase the house in writing. This done via a standard contract form that is normally prepared by the real estate agent.<\/p>\n
These are some clauses that you may wish to include in your offer:<\/p>\n
Settlement is the legal process of transferring ownership of the property title from one person to another. It\u2019s recommended you hire a conveyancer to deal with this complex documentation. This happens between the agreement and the settlement date, which will be set in the contract of sale. The settlement period is usually between 30 and 90 days and can sometimes be negotiable.<\/p>\n
There may also be other clauses that your real estate agent will suggest.\u00a0 Make sure that you fully understand what they are. If you are at all uncertain refer the contract to your solicitor or conveyancer prior to signing the contract.<\/p>\n
There may be a period of negotiation where the seller rejects your initial offer and counter offers until you both agree on a price.<\/p>\n
Check also at this point to see who is responsible for insuring the house prior to settlement.\u00a0 In most cases it is the person selling the house, but legislation does differ from state to state. Many insurers will provide complimentary insurance for this transition period, so it is well worth checking.<\/p>\n
Property prices are influenced both by demand and how much other potential buyers are willing to pay. Before you make an offer, research similar properties that have sold recently in the same area. Also consider organising a pre-purchase building report as any issues with the building may give you leverage to negotiate a lower price.<\/p>\n
Length of settlement is another factor that can be negotiated. \u00a0You may like a longer settlement to give you additional time to save, or if the seller wants a quick settlement then you may be able to accommodate that with a reduced price.<\/p>\n
You may also be able to negotiate the clauses around your purchase offer such as the length of time for finance approval, and whether your offer is also subject to the sale of an existing property.<\/p>\n
If you have a bank pre-approval this could also strengthen your negotiating power.<\/p>\n
Play your cards close to your chest and don\u2019t reveal your position.<\/p>\n
This includes keeping the maximum amount you\u2019re willing and able to spend confidential. Otherwise, the agent may try to push you closer to your maximum, even if your current offer is a fair one.<\/p>\n
If you\u2019re serious about the property, it might be worth making an offer slightly above estimated market value, as long as it is still within your means. But don\u2019t risk significantly overpaying just because you\u2019ve become attached. New properties are being listed all the time, so something else will always come along \u2013 and it might even be better.<\/p>\n
Most importantly, try to keep your emotions separate from your negotiations. Don\u2019t let competitiveness or fear of losing the property push you past your limit!<\/p>\n