A Guide To Buying Property Courtesy of: Gavin Blake & Natasha Salanitri
Purchasing residential real estate can be a very exciting process, however, it can also be a confusing time for the prospective buyer. As you may already be aware, different agencies usually have different sets of rules and standards, so we would like to inform you of the buying process should you decide to purchase a property through Harcourts Real Estate.
Should you decide to make an offer on one of our listed properties, we will ask you to confirm the following details, enabling us to help you in the best possible way. 1. 2. 3. 4. 5. 6.
The actual purchase price you will be paying for the property The method by which you choose to pay the deposit (eg cheque / bond / other) The settlement period that you require The name of your chosen solicitor or conveyancer The name of your bank or financial lending institution Any special conditions or requests that you may have so that we can inform the vendor (property owner)
Once we have the above information, we are in a position to arrange a meeting with the vendor.
For Your Information
Property owners receive all types of interest—some genuine, some not. Some people submit offers to test the possibility of sale, but do not actually stay true with their offer. This can lead to frustration and concern for the owners as they try to assess who is actually a genuine buyer. The best way to present a strong offer on any property is to utilise your purchasing option of the 5-day Cooling Off Period available with all QLD property Contracts of Sale. The cooling-off period is only available to the purchaser and allows for an offer to be submitted to the owner in writing, on the Contract of Sale. This clearly demonstrates to the vendor that you are serious about your offer. Once an agreement on price, settlement, conditions, etc has been reached with the vendor, the sale can proceed. An exchange of contracts is the only way to actually buy or sell a property. The exchange of contracts occurs when the purchaser and vendor each sign an identical copy of the proposed contract for the sale of the land, that land having a title. (The property on the land, being houses, townhouses etc are known as improvements to the subject land.) The exchange of contracts can be made according to terms under either one of the following options on the next page.
TERMS OF PURCHASE Option One: Unconditional Exchange This means the purchaser’s solicitor has signed a PAMD Form 32a. This Form will waive any cooling-off period and makes both parties committed to an instant, legally binding relationship. There is no turning back. This option also applies when a purchaser is the successful bidder at auction (where contracts are unconditionally exchanged).
Option Two: Exchange of Contracts As sales agents, we can only exchange contracts with a cooling-off period. The period for withdrawal lasts for five (5) working days and allows the purchaser the right to rescind the Contract of Sale for any reason. This period commences upon exchange and terminates on the fifth working day at 5pm E.S.T. (Remember that Saturday and Sunday, along with public holidays are not business days.) The vendor may extend this period by a clause in the contract or by notice in writing given before the end of the period. Please note, the owner may deduct a penalty fee of 0.25% of the purchase price, if the buyers rescinds the contract during the cooling-off period. The cooling-off period is created to allow the purchaser time to organise inspections and reports, and to allow their legal representative to check the contract. If you are wishing to seal a deal, it is important that you understand the commitment level required by both the purchaser and vendor.
HAVE YOU ARRANGED YOUR FINANCE? Never Underestimate The Power of a “Cash” Offer During Negotiations. You don’t have to wait until you’ve found a property before you arrange finance. It’s a good idea to find out first just how much you can borrow – that way you know what price bracket to start looking in. The problem that most people face today, however, is ―which home loan is the right one for me?‖ There are so many options when it comes to banks, products, rates, terms and fees. With the purchase of such a large investment, you need to be confident that you have made the right financial choice. In order to address these issues, the Harcourts Financial Services was established. They are a team of expert banking and financial specialists that can give you unbiased advice, at a place and time convenient to you and at no cost. This team of mobile managers represent a range of banks, building societies and non-bank lenders. They are employed by Harcourts and not the banks and therefore their advice is unbiased and trustworthy, focusing on your individual needs. They are committed to finding the right loan for you, eliminating the need for any bank interviews or paperwork. Their advice is free, without obligation and they will come to you - anywhere, any time. To take advantage of this service, please call on Donna Baden direct on 0423 000 670.
PURCHASING A PROPERTY General Tips If you want to make an offer, be certain that you can follow through by having the following items confirmed:
A pre-approval of finance from your bank or lending institution Your own property sold, or at least assessed for value and possible sale time You have a solicitor or conveyancer selected Determine how you will be paying the deposit and associated costs An idea of settlement times required before you take possession
Building & Pest Reports Before you purchase any property - particularly a new home - it is important that you receive a copy of a Building & Pest Report from a qualified inspector. Please note that this report is a complete list of defects of the home, and is very different from the feature brochure that you receive from the real estate agency. Most people are shocked with the report they receive on the home, and most times misinterpret the report, eg the home is 24 years old is in need of new roof tiles. Roof tiles last approximately 25 years and need replacing on every home of that age. The point to remember here is that all homes at one time or another require maintenance, and that this is known as a capital improvement on the property.
Bank Valuations Don’t be alarmed if your bank or lending institution request a valuation by a registered property valuer. This is normal practice of lending institutions, and serves as confirmation of the agreed sale price.
Buying at Auction If you intend to buy at auction, all the above-mentioned must be in place. Auction day is final. If you turn up to bid and you are the highest bidder past the reserve price, you are the instant owner awaiting settlement of that property.
COMMITTED TO YOUR NEEDS When you come to us in search of your perfect property, we don’t just try to sell you what we have on our books. We establish your goals and set about achieving them. It is our job to listen to what you want and to work alongside you with care and consideration at all times. As your real estate consultant we will guide you through the process of buying a house, providing advice on property values, investment potential, finance options and legal requirements. It is all part of our extra-effort service. And best of all, it’s all entirely free of charge.
FINDING YOUR NEW HOME We will begin by showing you suitable properties, which are on the market right now. You will see photographs and detailed descriptions of all the properties we have listed which meet your requirements. When you see something you like, we’ll arrange a visit. As your real estate consultant we will be keeping an eye out for suitable properties in the newspapers or internet, new listings that come up and even, if necessary, approaching the owners of properties you like which are not currently on the market. Of course, working with the both of us does not mean you can only look at properties which are listed with Harcourts. As you personal consultant we will be happy to deal with other real estate companies on your behalf. When the right property presents itself then it’s time to make an offer and we will encourage you to do so. Many people have found their perfect home but missed it because they didn’t take the opportunity when it was available to them.
WHETHER YOU FIND A HOME BY: Seeing an Advertisement in the Paper (Put a circle around it and phone it through to us. We can look up the details for you.) Or Seeing an Advertisement on the Internet (Save the link and email it through to us. We can look up the details for you.) Or Driving By a “For Sale” Sign (Carry a notepad and jot down the address, agent and phone number. We can make enquiries for you.) Or Visiting an Open Home (Phone us when you see it advertised and we will introduce you, or escort you through.) Or Hearing About a Home For Sale WE CAN HELP YOU BUY ANY OF THEM!
“WE WANT TO BUY IT” The dangers of offering too low: Many buyers once they find the property they wish to buy are tempted to ―start low‖. We understand, but would not be giving you complete service if we did not warn you of what can happen. 1. 2. 3.
The seller could be insulted, and become difficult to negotiate with from then on. (They might then stick to their asking price out of principle) The seller may think you to be a bargain hunter ―having a go‖ without serious intention to buy. The seller may dismiss your offer all together.
If you are serious about purchasing the property it is unwise to risk off-siding the seller. Make your initial offer one that reflects your serious intentions and appreciation of the true value of the seller’s home.
HELPFUL CONTACTS Solicitors/Conveyancers Conveyancing Works PO Box 15520 City East Qld 4002 Ph: 3023 5500
KRG Conveyancing PO Box 3258 Brisbane Qld 4001 Ph: 3368 9333
Frank Carroll Solicitors PO Box 9007 Upper Mount Gravatt Qld 4122 Ph: 3343 9522
McIntyre Legal Services 24 Burchell Street Carina Qld 4152 Ph: 3398 2252
Janette Smith PO Box 3078 Norman Park Qld 4170 Ph: 3899 3599
O’Reilly & Lillicrap PO Box 41 Carina Qld 4152 Ph: 3395 1800
John Drakos Solicitors PO Box 1617 Carindale Qld 4152 Ph: 3395 0246
Pereira & Co Solicitors 787 Old Cleveland Road Carina Qld 4152 Ph: 3843 0788
Building & Pest Inspectors Inspec Building Services www.inspecbld.com.au Ph: 1800 46 77 32
Australian Building Inspection Services www.abis.com.au Ph: 1800 19 20 21
Jeffrey Hills & Associates www.jha.com.au Ph: 1800 35 15 35
Prime Building & Pest Inspections www.pbc.net.au Ph: 1800 070 551
STAMP DUTY CHART Transfer duty (stamp duty) must be paid on dutiable transactions for property in Queensland. All parties to a transaction are liable to pay transfer duty. In most cases, this duty is paid by the purchaser. It is calculated on the value of the property or the consideration paid. Certain transactions may be eligible for a duty concession or exemption. For further information regarding eligibility criteria for stamp duty concessions and other amounts, please refer to the following website: www.osr.qld.gov.au Please use the chart below as a general guide only as to the amount of stamp duty that you would be liable to pay. We can not guarantee it’s accuracy and interested persons should rely on their own enquiries.
Purchase Price
Live-In
Investment
First Home Buyer
+ Transfer Fees
$400,000
$ 5,250
$12,425
$0
$ 702.80
$450,000
$ 7,000
$14,175
$0
$ 834.30
$500,000
$ 8,750
$15,925
$0
$ 965.80
$550,000
$10,600
$17,775
$10,600
$1,097.30
$600,000
$12,850
$20,025
$12,850
$1,228.80
$650,000
$15,100
$22,275
$15,100
$1,360.30
$700,000
$17,350
$24,525
$17,350
$1,491.80
$750,000
$19,600
$26,775
$19,600
$1,623.30
$800,000
$21,850
$29,025
$21,850
$1,754.80
$850,000
$24,100
$31,275
$24,100
$1,886.30
$900,000
$26,350
$33,525
$26,350
$2,017.80
TESTIMONIALS
―We are very pleased with the service that we were offered by the Gavin Blake team. The communication was excellent! We were constantly updated with what was happening in the market place and were given valuable information that helped us with our purchase. We were very happy with the level of professionalism and would highly recommend the services they offer.‖
―I am very happy with the professional yet personal service I experienced recently during the sale of our existing home and the purchase of our new home. I was given sound advice and found Natasha and Gavin to be very knowledgeable and would not hesitate to recommend them to my friends and family.‖
―Gavin Blake & Natasha Salanitri were very professional and approachable and they serviced our needs completely. They are a tremendous asset to the Harcourts organization.‖
―Gavin has been a wonderful agent and we had an excellent experience with him selling our home. He always kept us informed and as very polite and achieved top dollar for our home. Natasha was also fantastic in keeping us informed as to new properties that were coming on the market and did her best to help us find a new home to move to.‖
SUMMARY Preparation is the key. Understand your rights and have everything in place. If you follow the advice in this document, along with that of your solicitor and your real estate agent, you will be on your way to securing the right home for you. Whether you are considering purchasing property in the near future, or are currently in the process of buying a home through another company and need advice, please feel free to call us with any questions that you may have.
CONTACT DETAILS Gavin Blake Harcourts Carina/Carindale 828 Old Cleveland Road, Carina QLD 4152 M: 0422 487 442 E: gavin@gavinblake.com.au P: 07 3900 9929
Combining first class marketing with superior local knowledge and experience, Gavin ensures that every interaction is a positive and highly successful on. His enthusiasm, highly professional manner and dedication to relationship building have seen him build a solid real-estate business, with a high level of repeat client referral business. Client’s consistently report that his attention to detail and constant follow through keeps them informed throughout the whole process, which makes their transaction as stress free as possible. When selling, you will clearly be in safe hands. It is no wonder that more people trust Gavin to sell their home.
Natasha Salanitri Harcourts Carina/Carindale 828 Old Cleveland Road, Carina QLD 4152 M: 0439 094 440 E: natasha@gavinblake.com.au P: 07 3900 9915 Natasha’s passion for real estate has seen her change professions and join Gavin Blake in delivering a positive, professional and highly rewarding experience for people looking to buy property. Her communication and follow up with buyers is second to none ensuring a strong relationship and thoroughly understanding of her clients and their needs. With quite an extensive portfolio of investment properties, her knowledge of the buying process is invaluable and she is able to be supportive of your search for the perfect property.