Buying Your New Home Locally - Real Estate Tips

LEN WORTHINGTON’S REAL ESTATE TIPS

BUYING YOUR NEW HOME LOCALLY This guide will step you smoothly through the process of buying a home. Practical information on finance, understanding the market, finding a property, what to look for in a home, as well as making an offer, offer acceptance and the process from contract to settlement.

“Profit from my knowledge!”

Dear Valued Client, Purchasing residential real estate can be a very exciting process; however it can also be a confusing time for prospective buyers. As you may already be aware, different agencies usually have different sets of rules and standards. I hope that this document will explain the process in detail and make it clear for you to understand the steps to securing your home!

Buying a home is very exciting! Making plans for your future, choosing a home in an area that appeals to you, and investing in one of the safest methods for acquiring wealth. At the same time, it can be a daunting experience if you don’t have a sound knowledge and understanding of everything that’s involved.

In this booklet, I have tried to simplify and explain the whole process by taking you step by step through all the stages of buying a home. I hope to provide you with practical information on finance, understanding the market, finding a property, what to look for when buying an established home, as well as how to make an offer, through to offer acceptance and the settlement process.

Preparation is the key to successfully purchasing a property. Understand your rights and have everything in place. If you follow the advice in this document, along with that of your solicitor and agent, you will be on your way to securing the right home. If you have any further questions please feel free to call me any time.

Regards,

Len Worthington

Mobile: 0402 297 355 Email: lenworthington@remax.com.au www.lenworthingtonrealestate.com.au PS - You can contact me with any questions at any time! www.facebook.com/lenworthingtonrealestate

Contents Understanding the Market Characteristics 4 Finance & Preparation 5 How to Organise your Finance 6 Searching Tips 7 Don’t Rush Into Anything & Selecting Suburbs 8 Suburb Profile - Eatons Hill 9 Suburb Profile - Albany Creek 10 Area Specialists & Open Homes 11 Should I Buy or Sell First?

Buying First “ Subject to Sale” 12

Buying First “The Sunset Clause” 13

Buying First - A Common Scenario 14

Selling First - The BEST Option for Avoiding a Costly Mistake 15

Selling First - Strategies 16 How to Make an Offer 17 How to Make an Offer Continued 18 Making an Offer Document Example 19 From “Making an Offer” to “Contract Signing” 20 Missing out on a Property 21 Crucial Dates & Legal Conveyancing 22 From “Under Contract” to Settlement 23 Moving Checklists 24 - 29 Packing Tips 30 About Albany Creek & Local Reccomended Businesses 31 Disclaimer The information in this newsletter is for general information purposes only. Every care has been taken to minimize any errors. It is not intended as financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified and registered financial or investment adviser and / or independent expert opinions. No material contained within this newsletter should be construed or relied upon as providing recommendations in relation to any financial product.

The information provided is current as at the publication date only. This publication is supplied on the basis that while Len Worthington Property attempts to ensure the information in it is reliable at the publication date, it does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by yourself, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information in this publication through any cause whatsoever. I disclaim all responsibility and all liability (including without limitation, liability in negligence) for all expenses, losses and damages (including indirect or consequential damage) and costs which might be incurred as a result of the information or data being inaccurate or incomplete in any way and for any reason.

If you see any inaccuracies in this publication please email me at:

lenworthington@remax.com.au

Page 3 - Buying Your New Home Locally

Understanding the Market Over a period of time the property market fluctuates, so it’s helpful to know what sort of market is prevailing when you are looking to buy. Knowing the current market gives you an indication of what sort of properties are being sold, how quickly and for how much.

Each type of market has its own set of characteristics.

“Buyer’s Market”

The number of properties on the market are greater than the number of buyers.

• Properties usually take longer to sell.

• Prices are stable or sometimes they fall.

• Buyers often dictate the selling price.

“Seller’s Market”

The number of buyers exceeds the number of properties available for sale.

• Properties sell faster.

• Prices generally rise.

• Sellers may receive offers from more than one buyer.

• Sellers gain prices closer to the listed price, or over it.

“Balanced Market”

The number of properties for sale is about equal to the number of buyers.

• Sellers will consider reasonable offers.

• Prices are generally stable.

• Properties sell within a reasonable time.

• A good number of prospective buyers see the property.

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Finance and Preparation For most of us, our home will be the biggest financial commitment we will make in our lives. It is also much more than a matter of finance.

Knowing what you want in a property before you start can save you a lot of time. If you set yourself a clear criteria, you will find searching for a property much easier as you will be able to eliminate properties immediately that do not suit your needs. Some important questions to ask yourself when setting your criteria include:

What can you afford?

Calculate the deposit and repayments you can afford. Deposit requirements will vary, but as a rule of thumb, at least ten per cent of the selling price will be required. In general, lenders usually base the amount they will loan you on the rule that monthly repayments do not exceed a quarter of gross (pre-tax) income.

What are your location priorities?

Identify the areas that suit you and your households lifestyle (shortlist two or three suburbs). Assess your need for public transport, schools, sports facilities, easy shopping, etc. It is also important to research which suburbs are becoming more fashionable because of new developments, or have easy access to facilities and employment.

What type of a house will suit your needs?

You need to decide how many bedrooms and bathrooms are required, if you need formal and informal living areas, the size of the kitchen, if you require a larger yard or whether smaller will suffice, and whether you require or prefer a single storey or double storey home.

Page 5 - Buying Your New Home Locally

Our Home Loan specialists will make you feel right How to Organise youratFinance home.

You’ve found your new dream home - congratulations!

Few people can afford to buy a home without borrowing money. What’s more, there’s no point looking seriously for a home until you know just how much you can afford to borrow and repay. It is always best to have your finances in order before making an offer.

The websites of the major banks and most realestate websites, have mortgage repayment calculators that will help you to establish an estimate. Your capacity to make the repayments is only one part of the equation. You must also consider the value of the home itself. Most financial institutions will lend a maximum of 90 to 95 percent of the value of the home. If you need to borrow more than 80 percent you are likely to need Lenders Mortgage Insurance.

Speak to your local Mobile Lenders today.

Call us to arrange an appointment at a time and place that suits you.

Our Home Loa specialists wi make you feel r at home.

Belinda Field 0401 915 464 fieldb@anzmortgagesolutions.com

Speak to your local Mobile Lende Our Home Loan specialists will Call us to arrange an appointment at a make you feel right place that suits you.

Stick to your limit! at home.

Once you know how much money you have Margaret Ryan 0411 032 552 ryanm@anzmortgagesolutions.com

to spend, stick to your limit and be realistic.

There’s no point having a beautiful home to Speak to your local Mobile Lenders today. live in if you don’t have any money left over to eat.

These Lenders operate as Solutions Albany Creek, South Brisbane Belinda Field Call us to arrange anMobile appointment atANZ a Mortgage time and and Toowong, an independently operated franchise of Australia and New Zealand place that suits you.

0401 915 464 Banking Group Limited (ANZ) ABN 11 005 357 522. Australian Credit Licence Number

Remember, the price you pay for your home is not the only cost involved. Some of the additional little extras you need to take into consideration are legal fees, building reports, stamp duty if applicable, and mortgage insurance, moving costs, property valuation and insurance.

Page 6 - Buying Your New Home Locally

234527. ANZ’s colour blue is a trade mark of ANZ. Item No. 86459 10.2012 W311367 fieldb@anzmortgagesolutions.com

As ANZ Mobile Lenders in your local area, Belinda and Margaret are available to meet with you at a time and place that suits, including evenings and weekends.

Belinda Field Call 0401 915 464 fieldb@anzmortgagesolutions.com

Margaret Ryan 0411 032 552 ryanm@anzmortgagesolutions.com

Searching Tips Finding the perfect home that suits both your needs and lifestyle is much more than a question of size and style. The choice of suburb can have a more significant impact. You may have already decided where you want to live. If not, real estate websites can help you get a feel for prices in different areas.

While there are a number of sites available, three of the biggest are:

www.domain.com.au

www.realestate.com.au

www.homehound.com.au

Automated Email Alerts When you register with realestate.com.au, you have to option to “save and name” your search criteria. You can set up immediate notifications or you can choose daily, weekly or monthly alerts to this criteria. Simply register using your email address, and fill in the search criteria of properties, prices and areas you’re interested in. Realestate.com.au will then email you matching properties as they become available, ensuring you never miss out.

Page 7 - Buying Your New Home Locally

Don’t Rush Into Anything!

Make sure you do your homework. There are lots of properties for sale every week, so in the current market, you don’t need to rush in and make an offer on the first one you see.

If there’s an area you’d like to live in, take the time to inspect a reasonable number of homes to give yourself a true understanding of the market value of the properties and area you’re looking at.

It’s always a good idea to keep a list of the properties viewed and their features, even take a photo so you can remember them in more detail. In searching, the first homes you see can quite often, in retrospect, have more appeal as your market knowledge increases. At other times your first impressions will help you define your priorities and preferences.

To broaden you search, drive through an area and surrounding suburbs, refer to local newspapers, weekend papers and the internet to draw up a shortlist of properties that best meet your expectations on price, locations and features. Remember, others will be looking and well priced properties can sell within days, so you need to be looking on a daily basis.

Selecting Suburbs When you have identified a suburb with properties that suit your budget, spend some time looking around in that area. To help determine your ideal suburb you may like to use the checklist below.

Your suburb may not meet all of these points, for example, aircraft noise but it may make up for it in other respects, such as excellent sporting facilities.

• • • • • • • •

Is the suburb well serviced by public transport?

Are there quality parks, schools and childcare?

Are there quality sporting facilities and clubs?

Is there a shopping centre and medical facilities?

Is the area flood prone?

Is the area free from aircraft and traffic noise?

Is the suburb safe?

Is the area convenient to your place of work?

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suburb Profile - eatons Hill Approximately 17km North West of Brisbane’s CBD in the Moreton Bay Regional Council, Eatons Hill generally consists of low-density residential housing with acreage properties in the western portions. Most of the suburb has only been developed since the 1980s, with new subdivisions only recently completing. Local landmarks include “Cash’s Crossing” bridge and the South Pine River, the Eatons Hill water tower and the new Eatons Hill Hotel.

According to the 2011 Census there were 7993 people living in the suburb with a median age of 34. It is a popular suburb for families with only 13 per cent of dwellings being rented. Eatons Hill has a suburban shopping centre, bulk-billing medical centre, a dentist, two childcare centres and a State Primary School, and is close to secondary schools, major shopping centres, the Brendale Industrial Estate and Westfield Strathpine. Eatons Hill is serviced by Brisbane Transport bus routes 338 and 357.

What’s Close..

A

City Bus & School Buses Queen Elizabeth Dr at Saraband at Eatonvale

B

Eatons Hill Shopping Centre

C

Eatons Hill State School

Eatons Crossing Road

Marylin Terrace, Eatons Hill

D

Albany Creek High School

E

7 Day Family Medical Practice

F

Albany Forest Drive, Albany Creek

8 / 6-12 Bunya Park Drive (BULK BILL)

Eatons Hill Hotel

South Pine Road, Brendale

Brisbane CBD (aprrox 21km) Via Old Northern Road

International/Domestic Airport (approx 25km) The Circuit, Brisbane Airport QLD 4008

Brisbane Entertainment Centre (approx 17.9km) Melaleuca Drive, Boondall

Enoggera Park n’ Ride QLD (14 km) Via Old Northern Road

Westfield Chermside (13.9km)

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Popular Nearby Restaurants • • • • •

Portabella Restaurant & Bar Albany Creek Tavern Eatons Hill Hotel Coffee Club Albany Creek Montezumas Mexican Restaurant

suburb Profile - Albany Creek About 14km North / North West from Brisbane’s CBD in the Moreton Bay Regional Council, has, in recent years, experienced strong capital growth in real estate prices and sales activity.

Bordering on 1700 acres of State Forest, Albany Creek has numerous parks covering nearly 3% of the total area. Albany Creek is approximately 95 per cent single unit dwellings (houses) and five per cent flats and units.

It is a popular suburb for young families with many residents traveling to Brisbane City and surrounding suburbs for work during the week.

With good access to the Sandgate Beach (15km) and direct access to the Sunshine Coast and the South Pine River, there are many recreational activities for residents to enjoy.

According to the 2011 Census there were 15,860 people living in the suburb with a median age of 38. Of all occupied private dwellings 82 per cent were either fully owned or being purchased and only 13 per cent were being rented. Households in Albany Creek are primarily couples with children. In general, people in

What’s Close..

A

City Bus & School Buses

B

Woolworths Market Place

C

Albany Hills State School

D

Albany Creek High School

E

All Saints Parish Primary School

F

Albany Creek Leisure Centre

Intersection of Jagora Dr & Thiess Dr. Albany Forest Dr, Albany Creek Keong Rd, Albany Creek

Albany Forest Dr, Albany Creek Faheys Rd East, Albany Creek Explorer Dr, Albany Creek

Brisbane CBD (15.8km) Via Old Northern Road

International/Domestic Airport (19-21km) The Circuit, Brisbane Airport QLD 4008

Brisbane Entertainment Centre (15.2km) Melaleuca Drive, Boondal

Enoggera Train Station - Park & Ride (8.2km) Old Northern Road, Enoggera

Westfield Chermside (9.3km) Gympie Road, Chermside

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Popular Nearby Restaurants • • • • •

Portabella Restaurant & Bar Albany Creek Tavern Eatons Hill Hotel Coffee Club Albany Creek Montezumas Mexican Restaurant

Area Specialists Find a real estate agent who specialises in the suburbs that you want to live in.

Area specialists are better informed on specific properties, and are far more effective for their customers. As you look at the homes they are selling, talk with the agent and explain the type of home you’re looking for and give them an idea of what you can afford and your priorities. Importantly, choose and build a good rapport with an agent, one who will seek the property you want, understand what is important to you and who is willing to listen and go the extra mile to find the right home for you.

Len Worthington began his real estate career in 2000, and immediately began to enjoy the tremendous satisfaction of selling his client’s homes, gaining their repeat and referral business, and striving to achieve prices that match his client’s dreams.

Lens expert knowledge and experience has resulted in him becoming one of the most referred agent’s in the area. Please feel free to contact him with a wishlist of what you are ideally looking for in a home and he will be more than happy to help. He can arrange to email

you a short-list of properties each week for your consideration & even arrange inspections on those properties and assist in the offer process. Len is also happy to meet with you to discuss change-

over costs of buying and selling.

Len is a well known Albany Creek Area Specialist, and his focus areas include (but are not limited to) the following suburbs and their surrounds: • • • • •

Albany Creek Eatons Hill Warner Cashmere Bridgeman Downs

Open Homes Most homes on the market are open for inspection on a Saturday. By searching the internet and making phone calls to the agents you can limit the number of homes you actually visit. It’s important when visiting several houses to keep track of the key points of each home in the time available. First, identify if a home has the basics you are looking for and whether it is worth a second look.

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Should I Buy or Sell First?

Buying and selling at the same time can bring added stress to your move. Deciding whether to buy or sell first can be a difficult decision..

Buying First – “Subject to Sale”

Your offer is accepted with a contract condition stating that the offer on the property you are buying becomes unconditional when: • •

Your current property sells i.e. you sign a contract for the sale of it and then that contract becomes “unconditional”; or You elect to confirm in writing to the seller of the home you wish to purchase that the “Subject to Sale” condition has been waived or satisfied.

The Upside You have secured a property and you know where you will be moving to when your home is sold.

The Downside • You are not in a strong negotiating position when you make an offer with a “Subject to Sale” condition, therefore you will often need to pay more to “lay-buy” your new home than you otherwise would had your offer not been “Subject to Sale”.

•

You need to commit to a building & pest inspection and solicitors expenses before your existing home has sold, so even if your existing property does not go under contract, you could have outlaid costs of up to $1,500.

•

You will be under pressure to get your home sold quickly. The focus will be on the speed of selling, rather than on getting the best price.

•

Often people have sold their current home for far less than is usual, just to hold onto the new property they have just purchased. You become emotionally invested in and attached to the new home that may not end up being yours. This can cause stress and lose you money on the sale of your current home.

If you buy before you sell, the seller of the home you wish to purchase will almost definitely add a “Subject To Sale” Condition to the contract.

An example of the “Subject to Sale” Condition is: “ This Contract is subject to and conditional upon the Buyers entering into a Contract for the sale of their property situated at 1234 Bloggs Street, Albany Creek on or before 30 days from Contract Date, with such Contract becoming unconditional as to finance, building and pest inspections, and any other Special Conditions that may be relevant on or before 45 days from Contract Date, and is further subject to the completion of such sale on or before 75 days from Contract Date. If the Buyers are unable to meet the aforesaid requirements within the time limits stated, either party hereto may terminate this Contract whereupon all money paid as deposit shall be refunded in full to the Buyers.”

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Should I Buy or Sell First?

Buying and selling at the same time can bring added stress to your move. Deciding whether to buy or sell first can be a difficult decision..

Buying First – A Common Scenario Congratulations - you’ve found your new dream home - but it’s NOT definitely yours yet!

As discussed on the previous page, chances are you will have pay a premium price to secure the property you want to buy in order to entice the seller to accept your offer subject to the sale of your existing property.

Your purchase contract will no doubt be conditional on a “Subject To Sale” condition. The seller of the property you want to buy is also unlikely to want to “lock” himself into taking his home “off the market” for you, whilst waiting for you to hopefully sign a contract to sell your existing property within the time periods stipulated. He is therefore most likely to also place an escape clause (or a “Sunset Clause”) into the contract.

What is a “Sunset Clause”?

“A Sunset Clause” means that until you sign a contract to sell your existing property, the owner of the property that you’re trying to buy can continue trying to sell his home to another buyer, and they can take a more favourable offer from that second buyer and cancel your contract, unless you “waive” your “Subject To Sale” condition within 3 business days from when the second buyer signs their contract.

An example of a “Sunset Clause” is: “ It is agreed by the parties hereto that the Sellers may continue to list and market the property herein for sale. If the Sellers receives the offer of another Contract prior to the Buyers entering into a Contract of Sale for their property, the Sellers may give the Buyers notice in writing requiring the Buyers to waive the benefit of Special Condition One (The Subject To Sale Condition) within three (3) working days from the date of such notice. If the Buyers do not waive the benefit of Special Condition One by notice in writing to the Sellers within the time stipulated, the Seller may terminate this Contract whereupon all money paid as deposit shall be refunded in full to the Buyers.”

Page 13 - Buying Your New Home Locally - Should I Buy or Sell First

Should I Buy or Sell First?

Buying and selling at the same time can bring added stress to your move. Deciding whether to buy or sell first can be a difficult decision..

Buying First – A Common Scenario Congratulations! You have now signed and entered into a contract - most likely with a “Subject To Sale Condition” and a “Sunset Clause”.

The next step is to put your house on the market.

If you’re not fully prepared and ready for this step, you may spend around 2 weeks getting your existing property “market ready” to ensure that you get a good price. This provides time for the completion of the photography and advertising to get your existing home “on the market”, and ready for your first buyer inspections.

During this initial 2 weeks of the contract on your new home, you will most likely need to complete a building and pest inspection and have your finance approved (conditional upon the sale of your existing property).

In the meantime the great property that you have discovered and are emotionally invested in, and you’re now trying to buy, is drawing plenty of interest from other buyers in the market place. There is the strong potential of another offer coming in from one of these buyers exercising the “Sunset Clause” in that contract.

If that does occur, your options might include: 1. Going “unconditional” on your dream home (ie. Waiving your “Subject To Sale” condition as required within the “Sunset Clause”) in the hope that your existing home then sells quickly.

BUT BEWARE! You may end up owning two homes and utilising “bridging finance”.

2. You may be concurrently negotiating an offer on your home at that exact moment. You might decide to accept this offer quite urgently, even though it may potentially be lower than market value, in order to secure your dream home. So there is the potential you pay a slightly higher price for your next home while accepting a slightly lower one for your current property.

3. You give up on your dream home and continue marketing your existing property in the hope of finding another new home.

4. You withdraw your existing property from the market and go through a similar set of circumstances again the next time you discover your dream property. Only this time you have already withdrawn from sale once and will be unlikely to want to do it a second time. So you may end up choosing options 1 or 2.

Page 14 - Buying Your New Home Locally - Should I Buy or Sell First

Should I Buy or Sell First?

Buying and selling at the same time can bring added stress to your move. Deciding whether to buy or sell first can be a difficult decision..

Therefore.. Selling First IS the Best Option!

For Allowing you to Avoid a Costly Mistake The Upside • You know exactly how much money you have from the sale of your home and therefore how much you can spend on your new home.

• You are not under any pressure to sell your existing property quickly, allowing you to focus on finding the perfect buyer and achieving the best price.

• You are not under any pressure to take any offer - especially the low one’s!

• You can negotiate for a longer settlement (perhaps 60-90 days) to give yourself more time to find your next home.

• With your property now under contract, you are in the best position to negotiate a great price on the purchase of your new home - which could potentially save you tens of thousands of dollars.

The Downside • Not knowing exactly where you will live next can be stressful. To ease the nerves a little, I can provide you with a “Destination Market Analysis” for the suburb you are looking to purchase in, which details market trends, general suburb information and recent sales and properties currently on the market. I can also provide advice or assistance when you are ready to negotiate a purchase.

• If you have not found a property before the settlement date, you may have to look at one of the short term options (ie. A short rental lease or short term accommodation, such as www.rent-a-home. com.au )

Page 15 - Buying Your New Home Locally - Should I Buy or Sell First

Selling First: Strategies STRATEGY 1 (Recommended) Sell first on a long settlement.

Secure the best possible price for your own property, with a longer contract settlement period (perhaps 60-90 days), and then aggressively enter the market to buy your next home. Worse case is that you may have to seek temporary accommodation, or a short term rental property, if your existing home settles before you can move into your new home.

At least you won’t be left with owning two homes (and two mortgages) or many sleepless nights on “bridging finance”.

OR STRATEGY 2 Appoint Len to “pre-package” your property’s marketing campaign.

Following this process may save you several weeks of rushed preparation time when you find your ideal next home, and perhaps save you from losing out altogether on that next dream home.

With this strategy you begin preparing your house for sale. Once you engage me as your agent you allow me to: • Prepare the listing documents, write the marketing ads, complete the photography and sort suitable buyers from his database to activate the minute you are ready!

• Run a “Coming Soon Campaign” (see details on next page) targeting existing buyers and telling new buyers entering the market of a home that may be suitable for them (only for when you are ready for buyer inspections).

• You continue to look for your next home, knowing that when you do find the right one, you’re ready to negotiate. You are already 2-4 weeks ahead of where you would have been had you waited until the last minute after you had found your next home.

Page 16 - Buying Your New Home Locally - Should I Buy or Sell First

How to Make an Offer When you are ready to make an offer, tell the real estate agent, and give the relevant details, ie: your “price”, “deposit amount” and the date when you would like to take possession/settlement.

Also add in any special conditions you require your offer to be subject to, including building and pest inspections, finance approval etc.

The real estate agent will then draft up the contract, explain it’s contents to you, and provide instructions as to how to correctly sign and initial the respective pages. They will allow you to have your solicitor / conveyancer proof the contract before you sign it and present it back to the agent.

The agent may even commence negotiations based on your verbal offer.

Depending on the circumstances the vendor will: • Accept the offer. If they accept the offer you have a contract based on the terms agree to.

• Reject the offer. If they reject the offer without coming back to you then you have the option of resubmitting another offer. (Beware of offers which are too low and offend an owner, the emotions involved may prevent them wanting to work with someone they feel is trying to “steal” their home).

• Countersign your offer. They may countersign your offer. In which case you have the same three options (accept, reject, countersign).

Contract Signed & Dated: As soon as the contract has been signed and dated by both parties, the real estate agent (or their company) will date the Contract (“Contract Date”) and forward the originals of the contract to the vendor’s and purchaser’s solicitors. The agent will also ensure that the vendor and purchaser are provided with a signed and dated copy for their records.

Cooling Off Period: This is a 5 business day period which starts when the property is Under Contract, where the purchaser can terminate the property for any reason, but will need to pay a termination penalty equal to 0.25% of the purchase price. The Contract does not become unconditional until all stated conditions have been satisfied (eg: building & pest inspection, finance approval, sale of existing property etc). This can take from 7-14 days or longer, depending on the conditions and what timeframes have been agreed to between both parties.

Insurance: Please note, the property will pass to your risk from 5pm on the next business day, after the contract date. This means that you must get insurance on the property.

Page 17 - Buying Your New Home Locally

How to Make an Offer cont.

Valuation/Finance: Don’t be alarmed if your bank or lending institution requests a valuation by a registered property valuer. This is normal practice in all states of Australia especially if you’re borrowing more than 80% of the purchase price of the property. The Valuation Inspection will be arranged by your bank/ lending institution within 14 days of the dated contract.

Professional inspections: Depending on the property, there are a range of inspections to consider, including building reports, pest inspections, and pool inspections. Make sure the people doing the inspections are licensed and carry adequate insurance cover.

0401 915 464

Building & Pest Inspections: In many cases you should be able to receive verbal feedback immediately after the inspection has been completed. A written report should follow and may include the estimated cost of any major repairs, and advice on preventing future problems. The building inspector should report on the following: • water damage, including outside penetration & potential internal leaks • the structural integrity of all buildings • ventilation, skylights, air conditioning, insulation • the general condition of paintwork & plaster • the condition of the tiles on the floors & in bathrooms • the condition of the roof, guttering and downpipes • condition of surrounding concrete driveways & paths, fencing, retaining walls, paving • electrical – including safety issues • pool & pool fencing • all evidence of past & current pest activity that may pose a threat to the property, such as termites (white –ants) & borers.

Some inspectors have access to the latest technology & have the ability to check behind walls, using thermal imaging cameras.

Page 18 - Buying Your New Home Locally

Len Worthington

lenworthington@remax.com.au

0402 297 355

OFFER INFORMATION

Address of the property you are interested in: Full Names of All Buyers:

Your Residential Address: Your Postal Address: CONTACT DETAILS

Mobile 2:

Mobile 1:

YOUR SOLICITOR

Home:

Email 1:

Email 2:

Name:

Company:

Postal Address: Phone:

Your Offer Price: Balance of Deposit (Usually 2.5% of purchase price paid upon finance approval)

Subject to building & pest Inspection?

Email:

$

Your Initial Deposit: $

$

Settlement Date Requested:

(Usually 0.5% of purchase price)

YES

NO

Time frame required (usually 10 days):

Subject to pool inspection? YES

NO

Time frame required (usually 10 days):

Subject to finance?

NO

Time frame required (usually 14 days):

YES

ANY OTHER CONDITIONS?

Please submit offers via any ONE of these options: 1) Scan or save this document and email it to: lenworthington@remax.com.au 2) Simply email the information as required above to: lenworthington@remax.com.au 3) Phone call to Len with above information ready: 0402 297 355 If you wish to pay your deposit funds directly into our bank account, please ensure you include your surname or the property address as a reference.

Account details as follows: RE/MAX Northern Realty Trust Account NAB Albany Creek BSB 084150 Account 115772764

From “Making an Offer” to “Contract signing” Property owners receive all types of interest – some genuine, some not. Many property owners now acknowledge the market and are waiting for an opportunity to sell. Some people submit offers to test the possibility of a 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 be certain that the following items have been arranged or confirmed: • • • • •

Pre-approval of finance from your bank or lending institution.

You have a solicitor or conveyance in mind.

Have your initial and balance deposits ready.

An idea of a settlement date.

Your own property is sold, or in the process of hiring an agent.

A normal part of the process of buying a home is negotiation between the buyer and the seller. The more attractive you can make your offer in terms of price, and the fewer conditions you’ve included as part of the offer, the more likely you are the have your offer accepted.

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Missing Out on a Property Missing out on a property that you have your heart set on can be a very disappointing experience.

Quite often this happens because the offer process is misunderstood. When making an offer to purchase a property, it is important to be aware of the following: • • • • •

The property remains on the market while the vendor considers all offers.

Just because your offer is the first one submitted, does not necessarily mean that it will be accepted.

An offer is not legally binding on both parties until the buyer and seller have signed a contract.

The agent is not obliged to give you another opportunity to increase your offer.

The vendor is under no obligation until they accept the buyer’s offer by counter-signing the contract.

Multiple Offers on a Property If there is more than one offer being presented a purchaser may not get the opportunity to negotiate. The vendor can take the best offer and may not give a purchaser a second chance to make an offer.

An Important Note You should be very clear with the process of how the real estate company you are working with operates, as there may be slight differences in the process, ie, some companies recommend to their vendors not to take offers prior to the first open home, some will negotiate verbal offers initially, and some will only negotiate with signed & written offers. Some possible questions to ask the agent might include: • What is the process for me making an offer on this property?

• When will the offer be presented?

• When will you be back to me?

• Are there any other offers being presented?

• Will anyone else be made aware of the price I am offering?

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Crucial Dates “Contract Date”

“Unconditional Date”

“Settlement Date”

Which specifies when negotiations concluded and the agreement is signed by both parties. Once agreement on terms and price are made, the Contract will be dated and it is then legally binding.

You will need to pay a deposit immediately after acceptance of the offer, and ensure that you take out property insurance from the day after Contract Date.

The date/s when all conditions of Contract are met. This is when the contract becomes ‘unconditional’. Once the conditions have been satisfied and the purchaser’s solicitor has notified the vendor’s solicitor the contract becomes unconditional. If the deposit has not already been paid, which will often be the case ie: ‘paid on acceptance of the offer’, then this is the time it will be due.

The date by which you must pay the balance of the purchase price to the seller and you receive the keys to, and possession of your new property.

Legal Conveyancing

The Buyer’s legal representative will commence their conveyancing process and check all the details of the title and prepare all necessary transfer documentation.

This representative will have the Buyer finalise and sign any mortgage documents (usually when unconditional and nearing settlement) and arrange your finances for payment of the balance of the purchase price, as well as coordinating the following: Adjustments - In addition to the purchase price, you are likely to have to pay ‘adjustments’. This is payment for taxes, rates and other services that may have been paid in advance by the seller, or due to be paid by the seller (i.e water meter reading).

Duty - As the buyer, you have to pay all stamp duty and other statutory fees on the sale and the mortgage. The amount of duty will vary according to the purchase price, the amount of your loan and whether you will be an owner-occupier or an investor.

Deposit - In most circumstances this money is held in trust by the real estate agent who sold the home.

Before the settlement stage, your searches and other enquiries about the property should be complete; your finances should be in order and you should be ready to take the keys for your new property. The settlement is the formal completion of the transaction.

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From “Under Contract” to Settlement …

Preparing For Settlement

At least two to four weeks before settlement is when you usually also need to confirm removalist arrangements, arrange for the transfer or re-connection of services such as gas, electricity, water and phone / internet, and arrange for your mail to be forwarded to your new address from Settlement Date.

Pre-settlement Inspection

It is a normal condition of sale that you have one pre-settlement inspection, perhaps the day prior to or the morning of the Settlement Date. Your sales agent can arrange this appointment with you on your behalf at a time convenient to both you and the vendor. The purpose of this inspection is to ensure the property is in the same condition (excluding normal wear and tear) as when you agreed to purchase it. The Buyer should check that all the chattels (ie. Inclusions such as window dressings, light fittings, dishwasher, pool cleaning equipment etc) are still in place and any repairs agreed upon have been made.

Settlement

The settlement is the formal completion of the transaction. Your financier will now pay the agreed loan amount, and as discussed above you will need to pay the adjustments. Generally the actual settlement takes place at a venue nominated by the seller although this can vary by State. You will need to have a representative present (generally your solicitor or conveyancer). You (or your representative)will receive a signed transfer of the title and, if you have borrowed money to purchase the property, your lender will arrange for the transfer and mortgage to be registered on the title.

Once the buyers solicitor has transferred the money to the vendor’s solicitor, the keys can be released to the buyer.

Congratulations & welcome to your new home sweet home!

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Packing Checklists

Four Weeks Before Set a firm date for your move.

You may want to hire a relocation consultant (particularly if you are moving to/from interstate or overseas).

Organise a removalist - ask friends or relatives for recommendations.

Arrange for storage (if you need it).

Organise transit and/or storage insurance for your belongings.

Organise your travel plans for moving day - if you’re moving some distance, you may need to book a hotel or other accommodation.

If necessary, book some time off work.

Keep a list of incoming mail and start notifying businesses and suppliers of your change of address.

QUICK TIP! Start to obtain moving materials such as boxes, packing tape, rope, newspapers (for wrapping) and marking pens.

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Packing Checklists

TWO Weeks Before Start packing non essential items and clothing - list the items packed on the outside of the box.

Contact your utility companies (eg. Origin, Ergon, AGL) and communication providers (eg Telstra, Optus, Vodafone).

Arrange for disconnection and reconnection of telephone, internet and pay tv services at your new address.

If you have young children, it may help to arrange in advance for someone to look after them on moving day.

Update insurance policies, and ensure furniture and belongings are insured during the moving process.

Make a list of the items you want the removalist to move and any items you’ll be moving yourself.

If you have pets, organise care for them during moving day and make necessary pet transport arrangements.

Start cleaning your home.

Arrange redirection of mail with Australia Post.

Start to empty your freezer and pantry by eating all the food!

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Packing Checklists

ONE Week Before Arrange for outstanding bills to be paid.

Cancel services such as mowing service, newspapers and other home delivery services.

Put important documents such as passports, drivers licences in a safe place.

Make sure all boxes are correctly labeled with contents and rooms.

Start eating the rest of the food in your fridge & pantry.

Return library books and DVDs and pick up any dry cleaning.

If packing up all your belongings has left you with piles of large or excess rubbish, take it to the nearest tip.

Pack up your home computer, keeping all cords and accessories together.

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Packing Checklists

ON MOVING DAY Strip the beds and keep the linen in a separate box that travels with you (so you can use them on the first night).

Disconnect remaining appliances. Defrost your freezer the day before moving and empty the fridge into an esky.

Read the removalist document thoroughly before signing and save it for future reference. Have final payment ready for them.

Try to leave the house clean for the new owners. At this busy time it might be worth hiring a cleaner to finish the scrubbing and vacuuming for you.

Do one final check of your house as the removalists are loading your boxes.

Close and lock all the doors and windows.

Arrange for keys, remotes and any documentation/booklets relevant to your sold property to be collected by Len. Carry valuables, personal items and important papers with you so they don’t get lost.

QUICK TIP! Pack a survival kit for the first hours in your new home. Some good items to include are: Tea, coffee, a kettle, mugs, teaspoons, water bottles, snacks, milk, small first aid kit, toilet paper, a torch, spare light bulbs, paper towels & cleaning materials.

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Packing Checklists

IN YOUR NEW HOME Check all items during unloading and unpacking and make sure to look for any damaged or missing items.

Check the electricity/gas/phone has been switched on - if not, contact the suppliers.

Start with essentials such as making up the beds and setting up the kitchen.

Find out which day is your garbage and recycling collection day: Visit www.moretonbay.qld.gov.au/bindays/ or call (07) 3205 0555 Try to keep pets away until you are moved in, then get your pets familiarised to the new area as quickly as possible so they don’t try to find their old home.

Take a few different routes to go places from your new home you’re sure to find some handy shortcuts.

Don’t forget to get an updated driver’s licence address sticker & change the address online for your car registration: www.qld.gov.au/transport/licensing/update/details/ Change your address for any vehicle and household insurance policies.

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Change of Address Checklist You may also care to consider notifying the following of the date you are moving and your new address.

Disconnection & Reconnection of Utilities Gas Electricity Water Telephone Internet Pay Television

Personal Family and Friends Employer Schools Day Care Doctor Dentist Memberships Social and Sporting Clubs

Financial & Legal Banks & Credit Cards Superannuation Fund/s Shares and Investments Accountant/Solicitor Tax Office Insurance (property,life, car) Road Authority (licence and registration) Social and Sporting Clubs Electoral Office Local Council

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Deliveries Cancel Newspaper Redirect Mail

Packing Quick Tips • • • • •

Take the time to choose the right packing boxes for the job.

Begin packing a few weeks before the move.

Start in rooms where items are not in constant use.

Always pack heavy items on the bottom and lighter on top.

Colour code each room - with a description of contents on the box.

Another point to consider in advance of the move, is whether your driveway can take the weight of a fully laden van, or you can get in and out of the driveway. Removalists often provide a guarantee for any damage to your furniture or contents of boxes they have packed, so check your belongs thoroughly when received at your new address and advise of any damage that may have occurred.

Packing fragile items and furniture: • Wrap fragile items in paper.

• Use clean paper, bubble wrap or Styrofoam for padding.

• Use plenty of padding to cushion contents (recycle after move).

• Wrap electrical items individually before packing and cushion well.

• Pack containers tightly to avoid shifting but do not overload.

• Protect finished surfaces with paper or cloth to avoid scratches.

• If using newspaper, watch transferring of finger marks.

• Do not wrap porous surfaces i.e. lampshades in newspaper (ink can stain).

• For fragile and porous surfaces, towels and sheets are preferable.

• Let movers pack mirrors, furniture and pictures to prevent breakage.

• Resist packing breakables or liquids such as ornaments, perfumes or sauce bottles, in drawers.

• Do not overload drawers with linen or clothing as too much weight may damage your furniture.

Don’t forget.....

• Make certain all liquids and foodstuffs are in sealed containers.

• Dispose safety of volatile chemicals (oil, antifreeze, petrol).

• A few weeks before the move gradually start reducing stockpiles of frozen and tinned goods.

These are notorious for spoiling, spilling or simply taking up space and packing time.

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About Albany Creek

http://www.lenworthingtonrealestate.com.au/albany-creek.html

Recommended Local Trades and Services http://www.lenworthingtonrealestate.com.au/local-trades.html

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