STEPS INVOLVED IN BUYING REAL ESTATE
In the real estate industry, buyers come in a variety of shapes and sizes. Even more varied is the type of real estate they are looking to buy.
No matter what type of property you're looking to buy the REIQ recommends that you start by doing your homework. Logging on to our website is a great start. In this section we have put together some general information we thought may be useful for first time buyers, experienced buyers and investors.
The REIQ recommends the following steps when buying property:
- 1. Find out your borrowing capacity from your bank or financial institution.
- 2. Decide on a location where you would like to buy and the type of property that you are looking for.
- 3. Research property sales history in your chosen area and get information about sale prices for the suburb. Click on Selling on the homepage, then click on Recent Sales and you can then view our recently sold properties.
- 4. Jump on the Internet - you'll be amazed at the volume of publicly available information on finding and buying property. Some good sites to check out before you start the process include: * The Real Estate Institute of Queensland (www.reiq.com.au) *The Office of Fair Trading (www.fairtrading.qld.gov.au)
- 5. Examine property agent's office window displays, websites and newspaper publications.
- 6. Approach the selling real estate agent and inspect properties making notes on each property visited. Clarify inclusions with agent (e.g. fixtures such as dishwasher - make sure everything is included in the Contract).
- 7. Decide on the suitability of the property and the price to be offered.
- 8. When you have found the right property for you, contract the agent and discuss with them the steps involved to submit your offer. The agent will generally ask you for details regarding your offer:- finance, building inspection, price, settlement time frame and any other special conditions/inclusions.
- 9. The agent will then meet with you and go through all the documentation associated with your offer. The selling agent will provide you with a PAMD Form 27b Disclosure to Buyer, an REIQ/Qld Law Society Contract of Sale with a PAMD Form 30c Warning Statement attached (which outlines your 5-business day cooling off period). If you are purchasing a unit you will also be provided with a Disclosure Statement.
- 10. Pay a deposit to the selling agent and receive a trust account receipt.
- 11. The Agent will then submit the Contract of Sale to the seller, and advise you of the outcome. If you offer has been altered in any way you will be given the opportunity to reconsider your position and decide if you would like to meet the new requirements.
- 12. You will need a solicitor to do your conveyancing. Solicitors can also help you with other services such as title searches. Solicitor's fees are negotiable - it is advisable to compare the fees being charged by a few different solicitors. Good referrals and past experience are valuable when choosing your legal representative.
- 13. During the conveyancing process your solicitor will make the following checks on the property:
- * Applications and permits
- * Details of development approval permits previously approved
- * Notices, orders, requisitions or certificates issued in previous years
- * Land liable to flooding
- * Ownership and real property details
- * Sewerage mains, maintenance holes and property connection locations
- * Sewerage and septic tank installation/plan details
- * Water main locations
- * Existence of easements on the property.
- 14. If your Contract of Sale is subject to a Pest & Building Inspection, ensure you carry it out within the specified timeframe. Building and pest inspection reports must be from licensed professionals. The cost of these can vary. It is now required under Queensland law that the Inspector must be licensed by the Building Services Authority and you can verify this by logging on to www.bsa.qld.gov.au.
- 15. If there are no problems with the property and finance is approved, prepare to own your new home. You will also need to advise your solicitor and agent that the all conditions have been satisfied and the contract is now unconditional.
- 16. Wait for settlement to take place and ensure you solicitor advises the agent that settlement has occurred and then contact the agent and arrange collection of the keys for your new home.