If you use a buyer’s advocate, make sure that he or she is a licensed estate agent. A buyer’s advocate may be engaged to source properties, bid at auction and generally represent you throughout the buying process. You will pay a fee or commission for this service.
Before making an offer on a property or bidding at an auction, have a solicitor or conveyancer carefully check the vendor’s statement for you. You should also consider getting a building inspection from a qualified building inspector.
If you are buying an investment property, check with the Australian Tax Office about allowable deductions for rental properties.
Obtain independent legal advice before buying a unit, flat or apartment to find out about the advantages and disadvantages of holding a title under the different property schemes.
When buying a unit, apartment or flat, you will probably be living in close proximity to others. This means certain rights and responsibilities apply. Be aware that this can also mean additional noise and other possible inconveniences.
If buying ‘off the plan’, get a firm date from the developer of when the property will be finished. Seek professional legal advice before signing a contract with a developer.
By doing research and knowing the market in a particular area, you will be a better judge of property sales prices.
If the property has been renovated or extended, check the vendor’s statement and call the local council, as they will be able to check that relevant planning or building permits were obtained. Any illegal alterations may become the responsibility of the buyer once the contract has been signed.
Be cautious of any property inspection report offered by the agent or the seller. The independence of a report is only guaranteed if it is obtained specifically by and for the buyer.
The fee for a professional inspection service is small compared with the cost of buying a property that requires extensive unforseen repairs. Even if major faults are not found, you can use minor faults discovered in the pre-purchase inspection as the basis of an ongoing maintenance program, if you decide to buy the property
Do not sign a contract for an owner-built property before checking the property very carefully. If there is a query regarding defective or incomplete work, check with your local council or ask the property owner for information.
The decision on how much to offer is a difficult one to make. You have to decide whether to make your best offer upfront or offer a lower price and be prepared to negotiate up. Note that in the case of multiple offers, the seller may decide to accept another offer, without giving you the opportunity to increase yours. If you are not confident negotiating with the agent, you may prefer to engage a solicitor or buyer’s advocate to do your bargaining for you. You can expect to be charged a fee for this service.
You should insert in the contract a date by which your offer will lapse. This way you will know whether your offer has been accepted within the specified timeframe.
A copy of the auction rules and information statement, and any additional conditions must be made available for inspection at least 30 minutes prior to the commencement of the auction. A prospective buyer is advised to read these carefully before making a bid. Auction rules are available at www.consumer.vic.gov.au
Anyone at a public auction is permitted to ask the auctioneer in good faith a reasonable number of questions about the property, the contract or the rules and conduct of the auction. A bidder may also ask the auctioneer to indicate who made a bid.
In order to bid successfully at an auction, a bidder should:
- be clear about his or her bidding limit
- bid confidently
- ask any questions of the auctioneer including an indication of who made a bid.