Buying a home with us
Different agents do things differently which can make the experience of buying a home very frustrating. Some agents will happily sell a house to the first buyer that sees it. Others will often sell a home without even taking it to market. Others don’t really seem to have any strategy all.
It is our goal that if you buy from us, that you will love the experience of buying. That doesn’t mean we will be giving our properties away cheaply. On the contrary, we will work hard to secure the best possible price for our sellers.
What you can expect from us as a buyer is to be treated with courtesy, respect and in a professional manner. We won’t lie to you and we will empathise with your situation, given it’s likely to be pretty stressful.
We have a structured program for selling that we follow religiously. We always keep properties on the market for a minimum of 12 days. This allows plenty of time for inspections for all buyers to consider their position.
We don’t like to push anyone into a quick decision. It’s a huge decision and one that you shouldn’t take lightly. We will show you the home and give you multiple opportunities to view it. We encourage you to bring your family and friends through for a second opinion.
Pest & Building Reports
We usually use Better Building Inspections for our reports (unless the seller has their own preference). When we do, you will be able to transfer the ownership of the report from the seller to you, once you purchase the property. This means the legal liability also transfers. They will not charge you for this service.
Pest and building reports can be complicated and often filled with technical and legal jargon. We encourage you to speak to the inspector directly if you have further questions. They should be able to clearly explain the details of the report and in some cases, give you a rough guide as to repair costs.
Making an Offer
We will submit all offers to the seller immediately for their consideration. Offers can be accepted at any time, but generally if we already have another inspection planned we will usually do this first before rushing into a quick decision. Please don’t rely on this. If you want to buy the property, it is really up to you to let us know as soon as possible and from there we will explain our timeframes of when we will get back to you.
Every negotiation is different and there is no specific formula in arriving at the final price. When there is just one offer on the table, things are pretty straight forward. If there are multiple buyers attempting to buy the property, it is our job to work through all offers until only one buyer is left. When the price meets the owner’s expectations the offer will most likely be accepted. We do not believe that asking buyers to put a ‘final and best’ price down with no further negotiation is a fair way to treat either party.
Negotiations will happen in good faith. We will never lie about the number or size of existing offers. In the past Buyers have tried to call our bluff, thinking that other ‘alleged’ buyers don’t exist only to lose the property. We can understand the reason why buyers would find real estate agents are dishonest. It is a fair assumption that this type of practice routinely occurs in the industry. Believe us, we will not do it. Ever.
When properties attract multiple offers, it is a fact that all but one party will walk away disappointed. Please understand that it is our responsibility to the seller, to work as hard as we can to extract a premium price. In doing so, our goal is to provide all potential buyers with accurate information and communication in a timely and professional manner.
Offer & Acceptance
The price in which you make an offer is important however we are also keen to learn about any conditions that come with the offer. If you make an offer you can expect us to ask for more information regarding ideal settlement timeframes, special conditions and where you are up to with your finance. Ideally buyers should be pre-approved with a deposit ready, however this is not mandatory.
Once an offer is accepted we strongly encourage the purchaser to get the property off the market straight away to ensure another buyer does not try to ‘gazump’ them.
Gazumping occurs when another buyer makes an offer when the owner may have already accepted yours. The law states that agents must present all offers to the seller. If the original purchaser takes too long to get the contract signed and to pay the deposit, then the seller has every right to sell to someone else (as harsh as that sounds). This obviously places a great deal of stress on all parties, however it is not illegal. If your offer is accepted, the speed at which you move will make a huge difference in ensuring you secure the property.
No Gazumping Policy
If you have ever been gazumped, you will know it’s not a pleasant experience. It has happened to us. Every week we hear tales of buyers who have been stuffed around by other agents. It’s not good and we want to avoid putting our buyers through that at all costs.
It has been 4 years since one of our buyers has been gazumped. In this situation, the buyer just took too long. We have an expectation with all buyers that they move forward quickly once an offer is accepted. To be clear, we take our time during the inspection and offer process. We give our buyers all the information they need to make a decision and we don’t place undue pressure on them. Once we have accepted an offer however, we expect quick progress. Generally, we like to give a buyer a maximum of a week to complete their due diligence.
During that time, we won’t usually do any further inspections. If other people want to view the property will notify them that an offer has been accepted. We will collect their contact details and if our current purchaser can’t fulfil their obligations we will contact those others buyers (or ones that have missed out) and attempt to close the sale with someone else.
If you make an offer with us, we will explain this very clearly so there is no confusion.
House hunting tips
It can be a jungle out there if you’re looking to buy a home. Here’s some advice and tips to make it easier to purchase your dream home.House Hunting Tips
It’s not just the purchase price of a house. It’s all the other costs you have to consider when buying a property. There’s stamp duty, legal and conveyancing fees, building, pest and strata reports. And, don’t forget to add in the moving costs unless you can use your mate Dazza and his ute to help you move.
Here’s more information on what you need to be ready for.Upfront Costs
The legal stuff. The signatures. Let’s take out the intimidation. Understand the important stuff.
In NSW, there are 2 ways to exchange contracts: agent exchange or solicitor exchange.
- This happens where the buyer signs the contract with the agent and pays a minimum deposit of 0.25% of the purchase price.
- The vendor also signs the contract.
- Once both parties have signed the agent then exchanges the contract by dating it.
- At this point the seller cannot pull out or sell to another party (i.e. no possibility of ‘gazumping’).
- The buyer however has a 5 day cooling off period in which to do their due diligence (i.e. pest and building reports, solicitor checking the contract, finance valuation if required).
- If the buyer withdraws from the sale during the cooling off period, they will forfeit 0.25% of the purchase price.
- Please note: in this instance, the buyer’s solicitor will still review the terms of the contract prior to exchange.
- When this occurs, the agent will forward the buyers details to the seller’s solicitor to prepare the contracts.
- Once received, the buyer’s solicitor will usually review the contract, organise any required inspections and finance arrangements.
- Once due diligence is complete, the buyer will sign the contract with their solicitor and forward back the seller’s solicitor ready for exchange. In this situation, no deposit is paid until exchange of contract.
- In the instance that another offer is made, the agent, by law, must present other offer to the seller, even if they have already accepted an offer. The owner is entitled to ‘Gazump’ the first buyer as contracts have not been exchanged.
Real Estate Jargon
Thinking about waiving the cooling off period in your contract exchange to avoid being gazumped?
What does it all mean?
Buying a property comes with a new vocabulary to learn.
Know the lingo. Know what it means. After reading this you’ll be a pro like us.Real Estate Jargon