Buying a home or a property can be daunting, especially for the first time buyer. At Indigo Real Estate, we will be with you through the process to answer your questions and to point you in the right direction where necessary.
Each purchase is different and below you will find a general guide. There will be instances where events not covered below occur. Please note in this general guide we do not cover the steps you will need to take with your finance company or solicitor; they will discuss that with you directly.
Finance: If you need to borrow to purchase a property, the first step is to determine how much may be available to you and your capacity to repay that money. Speak to your bank, broker or financial adviser to determine how much you may be able to borrow. Most lenders should be able to give you conditional pre-approval up to a set amount which will let you know which properties you can consider buying.
Inspect Properties: Now you know how much you can borrow, you can begin to identify properties to inspect. At first we suggest you begin by attending some open homes to gauge what you will get for your money and to compare what is available. If you wish to inspect properties outside of your price range, that is also a good idea, but please do this by attending Open Homes rather than making individual appointments to inspect a property.
Vendors Statement: Also known as the Section 32, this document provides you with the legal information relevant to the property. It will show you boundaries, rates, ownership and other important information relevant to the property.
Conveyancers & Solicitors: Just as the vendor needs a conveyancer or solicitor to prepare the legal documentation to sell their property, you as the purchaser will also need a conveyancer or solicitor to review the Vendor’s Statement and contracts. Some agents may seek to have you sign the contracts with them in which case (in Victoria) you will have a 3 day cooling off period. Make sure you are fully advised as to the process for cancelling your contract and your obligations if you intend to sign with the agent. We recommend for your own peace of mind you have your appointed conveyancer or solicitor review the contracts before signing.
Making an Offer: Once you have found a property you would like to purchase, you can discuss your offer with the agent who will then liaise with the vendor. By law, an agent must pass on all offers to the vendor. We also suggest when making your offer that you include any additional conditions you may wish to be included, such as subject to finance, building and pest inspections, or any other criteria.
Once your offer has been accepted on a property, contracts will be prepared and you will be given fixed dates for which to complete any conditions, including the formal approval for finance. It is best to get on to these as soon as your contracts are signed and exchanged.
It should be noted that if you are purchasing a property which is being auctioned, all inspections should be completed before the auction and your finance should be secured. A property purchased at auction is an unconditional sale with no cooling off period.
Pre-settlement inspection: It is recommended that several days prior to settlement you once again inspect the property to ensure it is in the same condition as when you made your offer.
Settlement: At settlement, your funds are transferred to the vendor, the titles are transferred into your name and you will be able to collect the keys to your property.