Buying Tips
This guide was developed by SMART Real Estate to make the buying process a little less daunting. Below you will find a guide and tips on searching for your home, making an offer, and purchasing.
Financing Your Home
Before searching, investigate your borrowing capacity and if possible, secure “pre-approval” for your loan. Funding of course is a major influencer of your property search. When you know your budget, be sure to factor in expenses such as stamp duty, loan application fees, insurance and fees associated with connecting utilities. For more information on finance, see the “finance” section of this site.
Searching
- Consider a few areas in which you might like to buy.
- Research the history of these area’s such as their property sales history, and current information regarding median prices.
- Use as many search tools as you can find including the internet, magazines, newspapers, agents, property websites, and take a drive around the desired neighbourhood making note of any “For Sale” signed houses that appeal.
- Talk to people who already live there, particularly if it’s an area you are not familiar with. Maybe you know someone, or maybe you see someone doing the gardening while you are driving through. People who live in the area can give you a far more accurate depiction of neighbourhood living than any magazine or website.
Inspecting
You may find you end up looking through so many houses you forget which one was which.
To avoid this, we suggest you bring a notebook and a pen along with you.
- Make a check list of things you are looking for in a house, and mark them off as you see them (e.g. air conditioning, dishwasher etc).
- Also write a “pros and cons” list about each property to help you make decisions later. Reducing the house down to its elements may help you realise its potential.
If you find a house you are interested in
- Run a sales history search on the property to find out it’s last sale price, along with recent sale prices of neighbouring properties. This information can be provided by the Department of Natural Resources and Water and CITEC.
- Consider getting an independent valuation from a professional. The Australian Property Institute can provide you with a list of licensed valuers. They are contactable on (07) 3832 3139.
Making an Offer
Once you have decided to make an offer on a property, the first thing you need to do is obtain a “PAMD form 27c Disclosure to Buyer” and the “REIQ/QLD Law Society Contract of Sale” with a “PAMD form 30c Warning Statement” attached (this outlines your 5-business day cooling off period). If a contract that does not have a warning statement is entered into, it will be of “no effect”.
The next step is to put in your offer, and sign a contract for sale. Note any special conditions and make the contract subject to building and pest inspections, and finance if necessary. You then need to pay a deposit to the selling agent and make sure you receive a trust account receipt.
Contact your financial institution from which you are borrowing and aware them off your offer. Arrange building insurance to satisfy your lender. In the circumstance that you have made your contract subject to building and pest inspection, ensure these inspections are carried out within the time specified.
Conveyancing
Conveyancing is the act of transferring property from one person to another when buying or selling and includes title searches, checking for encumbrances and restrictions on the property, ensuring any special conditions mentioned in the contract are met, ensuring rates and water consumption charges are paid by the appropriate party at the correct date, arranging payment of fees and charges, and preparing legal documentations. It is recommended you use qualified solicitors to ensure the transaction runs smoothly and to reduce stress. The best way to find a good solicitor if you don’t already have one, is through word of mouth. Although it is not advised, if you feel you have the relevant training and experience to do it yourself, CITEC offer an online conveyancing search package.
Settlement
When a settlement date has been secured, you can now start to book removalists, arrange utility connections, and home and content insurance. Notify your change of address to not only friends and family, but financial institutions, Medicare, the ATO, electoral roll etc. Australia Post also offers a mail re-direction service.