12 Step’s to buy your first House, For 1st Home Buyers.
I work predominantly with first home buyers, in Western Sydney-
My clientelle are more often than not young bright eyes urban proffesionals who have been working hard to earn the resources to cut themselves a slice of the Aussie dream.
Some come with modest hard earned first home buyer budgets, Also they often come down LOADED not only with cash but ARMED to the teeth with all manner or real estate market knowledge.
Regardless of their knowledge of the market or budget one thing remains the same..
They are still making their very 1st property transaction and they always have but a very vague idea of the standard process and how it works, So let's unpack that.
Find a property that you are happy to invest your time, effort, and life in because that’s what you are doing.
Request a copy of the actionable and up to date Contract of Sale (C.O.S)
Send the C.O.S to your solicitor or Conveyancers have them check over it and make sure it’s all good, You are paying them to let you know if there is anything in there you may not be aware of (I.e land usage issues , existing interests on the property etc.)
Confirm with your broker that you are good to borrow the required amount of finance you will need to “settle" the property (usually 90% of the price)
MAKE AN OFFER, Preferably in writing (a simple sms is fine it’s 2020)
**NEGOTIATING NOISES**
Agent : “Congratulations your offer has been accepted..”
Once the offer has been accepted you will be required to pay a 0.25% holding fee and sign a copy of the Contract with your details and the agreed price filled in, Traditionally the 0.25% holding deposit is non-refundable, It is your financial commitment to the vendor to show them you mean business, And take the property off the active market. Once you have paid the 0.25% and both you and the vendor have signed a separate copy of the paperwork, This is considered a “conditional exchange"
The 5 business day cooling off period begins (e.g If you signed on Monday, You will have til 5pm the following Monday) to do your due dilligence on the property and the contract, Organize your funds etc as before the end of the cooling off you will be expected to pay the difference of 10% minus the 0.25% you have already paid.
“UNCONDITIONAL EXCHANGE” (SOLD) Once you finish all of your research and preparation and make the payment of 10%, This is when it’s marked SOLD.
SETTLEMENT PERIOD - Although you have paid 10% and it’s “SOLD", There is still an outstanding 90% that needs to be paid before you get the keys and can move in, You have 42 days (6 weeks) to organize this remaining payment but this period of time can be negotiated also on exchange to be as short as a few weeks to and long as a few years but 42 days is the default timeframe for settlement.
Pre-settlement inspection And Settlement Day - In the week before you settle it’s advised you do a final pre settlement inspection, You are entitled to one day during the settlement period to get access to the property with the agent to make sure that everything is as it was when you saw it and decided to purchase, Then on settlement day afternoon usually around 2:30pm the banks representing either side will hold a virtual meeting where they finalize the payment and transaction, And the sale is finally completed, Soon after that the vendors solicitor will send a special message to the Agent called the “Order of the Agent” and only then can the Agent rightfully present to you the keys to your new home.
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