Approach

Purchasing Property

It’s important when buying property to be fully informed. 

Successful outcomes come from a strategic approach to any project and purchasing a property requires the same methodical process. 

  • What are you looking for and why? 
  • What’s critical and what’s less critical or, 
  • What’s not important in the decision-making process.  

The specification requirement is critical and you will need to consider and understand what is typically available within the marketplace and each respective price range. 

A Methodical Approach

Defined Search Criteria

Refining and determining the search criteria incorporating location, size, style and other property improvements and the all-important budget is a key stage in the property search process.

You also need to have your finances sorted out and bank approval ticked off so you know your exact budget. Buying at auction or within 3 days pre or post auction are unconditional contracts with no cooling off periods. Making an offer subject to finance could leave you exposed to the vendor accepting an unconditional offer from another purchaser who has their finances approved. Your budget should allow for a variance in interest rates over the medium term off what are currently generational historic low rates. 

 You may want to make this property your home for 20 or more years so we have to get it right. The emotional stress and financial implications are too high to get the decision wrong. 

Filtering the right shortlisted properties from the myriad of properties on the market is a lot simpler if the time and effort has been expended at the initial stage of the process. 

Other Factors To Consider When Buying Property

Critical consideration of town planning, zoning, heritage restrictions, planning overlays and easements or covenants on the title may potentially impact upon your intended plans or usage of the property. Understanding their implications is a key due diligence step to filtering properties which may be unsuitable for your requirements. 

How will the property be owned, individual or joint ownership, a company or a trust? There are financial, legal, tax and accounting implication which may warrant both legal and or accounting advice 

Shortlisted Properties

The shortlist of properties should broadly meet all the major criteria identified from your brief and be within an appropriate price range as determined by the purchase budget. 

It’s essential that the likely sale price is within your budget otherwise this will inevitably lead to disappointment, not to mention valuable time and effort expended. 

Review of Contract and Other Considerations

Another important consideration in the property purchase process is to have the contracts of sale reviewed by solicitors as required. Other items needing close attention are to check that the property boundaries are broadly in the right location, which may require a check survey before an offer of purchase is made.  

In addition, questions such as whether pest or building inspections are required, will be influenced by how the property is intended to be used. 

The Purchase Strategy

It’s absolutely critical to know the fair value range so that an appropriate strategy can be established and executed to secure your desired property. 

The strategy will vary depending upon the location (inner city, middle ring, outer suburban, country, holiday market), price range and buyer demographic, as the number of potential buyers and purchase competition will almost certainly vary. You will most likely negotiate a superior outcome with less competition than at a competitive auction with several bidders. 

If the property ends up at auction, we advise on the following critical points in the strategy: 

  • when to start bidding,  
  • the level of bidding,  
  • bidding increments and 
  • how to secure the important exclusive negotiating rights as the highest bidder.  

Getting involved at an auction that is beyond your budget isn’t wise and not advisable. 

Pitfalls and Traps To Avoid

In our many years of experience, we have identified that many buyers pay over the market value of a property whether it be for lack of appreciation around market value, sales transactions, levels of value, not having their needs fully defined, or getting caught up in the hype around the sale and auction process generated by the vendor’s agent.  

That’s why an independent third party with thirty year’s real estate, property valuation and property advisory experience will give you an inside edge to ensure your next property purchase can flow as smoothly as possible.