Tips for Buyers
The potential of buying property is very exciting, whether it’s your family home or an investment, and it’s likely to be the most expensive purchase you will ever make! To make it a smooth transaction, the most important things you can do are BEFORE you sign the Offer and Acceptance. Here are some things for you to think about.
Know your borrowing limit.
Speak truthfully with your bank or broker to assess how much you can afford to spend. Then shop within your limit while you search for your property.
Research.
Know the area you are looking to buy in so you have a realistic expectation of what you will need to pay.
Government Assistance
Be aware of your eligibility for government assistance.
Factor in Settlement costs
The biggest of these will be State Government Transfer Duty (Stamp Duty). You can find a calculator HERE. Please fill in our ONLINE REQUEST for a comprehensive quote outlining all applicable charges.
no cooling off period in wa
Once you have signed an Offer and Acceptance it is a contract in full force, so don’t make multiple offers thinking you will be able to cancel the ones you don’t want.
Completing the Offer and Acceptance. The standard REIWA Offer and Acceptance is probably more weighted in the favour of the seller. How can you get a little more power when constructing your offer?
Make the offer in the Correct Name.
Are you buying the house as individual, with a partner or spouse, as trustee for a family trust, or as company? The list of entities is long, but once you have made the offer you can’t change the name of the entity buying the property without exposing yourself to potentially paying double Transfer Duty (Stamp Duty). A discussion with your accountant BEFORE you make the offer will ensure you are buying the property in the entity that best suits your purpose.
Be realistic
Be realistic. When purchasing an established house items will have wear and tear. You are buying the house in the condition that was in when you inspected it immediately before you made the offer. So make sure you take your time to thoroughly look at everything.
Building and Timber Pest Inspections.
The standard REIWA Major Structural Defect and Timber Pest Annexures often leave buyers surprised as to what they can actually request to be fixed. Read the Annexure carefully and understand exactly what can be remedied. Rather than using these Annexures consider using a DUE DILIGENCE CLAUSE where you can stipulate a particular period of time to have various professional inspections done. Once you have this information you then have the option of proceeding with the contract, negotiating repairs or financial compensation, or terminating the contract. Please give us a call to discuss these options further.
Chattels
If there are items of furniture, built in appliances, garden ornaments, pots etc that you expect to be included in your purchase, make sure you list them here to avoid conflict at settlement.
Special conditions
Each of these will consist of four components so as not to be ambigous. They must clearly state:
1) What is to be done
2) Who is to do it
3) When is it to be done by
4) What happens if it isn't satisfied.
FiNance Approval & Settlement dates
Allow enough time for the bank to get ready and all the conditions to be met. 21 days for Finance Approval and 21 days from Finance Approval to Settlement are usually achievable targets.
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At Concord Conveyancing we are happy to discuss your Offer & Acceptance and answer your questions before you make it - Give us a call!
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