Due Diligence tips for 1st PPOR?

Hi All,

I've just placed a fair written offer on a house in Melbournes western suburbs. Although the suburb itself is fairly respectable I am not sure of the streets surrounding our possible new house.

Presuming the vendor agrees to our offer, what are some good things to do prior to the final agreement?

Things I am worried about:
- Halfway houses that appear to be standard residential
- Planned new developments we may be unaware of
- Dodgy neighbours - pot luck?

I've used a conveyancing solicitor who I trust, but there are some things they cannot check. Interested to hear tips from ppl with more experience. I'm happy to take a day off work and sus out the area, just need to know what tell tale signs to lookout for!

Thanks.
 
You're doing this DD after you've made an offer? :confused:
Better late than never, although having said that, I guess if it's a hot market, maybe this is the way to go and just risk losing a few hundred using the cooling off period if you choose not to go ahead.

I normally go for a drive/walk around the streets and just take a look at the state of the houses and what sort of cars are out the front. If gardens are untidy and there are old rust buckets on the lawn, then big warning bells as to the type of people in the area for me. I definately wouldn't want this house too close to my PPOR. If it's generally nicely maintained homes with nice cars (not scattered all over lawns) then I usually feel comfortable with an area.

As for other developments, when I've bought near unused land, I ring the council and just ask what the deal is. Sometimes they can be helpful and let you know whose bought it and what plans are in place for it.
 
Presuming the vendor agrees to our offer.

As Biggles said once they accept the offer, that's it - it's final!

Anyway, things I look for:

State of gardens
Types of Cars
State of repair of homes

Visit on Saturday night - Park in the street, and get out to check for loud music etc. If your car is missing by the time you turn around to get back in, the street may not be so good.


Having had a tenant who ran our house as a halfway house, I can tell you the gardens were in a shocking state for starters.

The Y-man
 
As Biggles said once they accept the offer, that's it - it's final!

Can I ask for a bit of clarification here; isn't it only final once the vendor and purchaser have exchanged contracts?

Only reason I ask is because when buying my first PPOR, I was called by an agent saying "the vendor is going to exchange contracts this afternoon, would you like to make an offer?"
 
Can I ask for a bit of clarification here; isn't it only final once the vendor and purchaser have exchanged contracts?

Only reason I ask is because when buying my first PPOR, I was called by an agent saying "the vendor is going to exchange contracts this afternoon, would you like to make an offer?"

From what we have done in the past (in Victoria - so probably varies in other states), a "written offer" is the actual contract signed by the buyer with offer price and terms and conditions filled in - and the only thing that needs to happen for a vendor to accept the sale is for them to sign the same said contract.

Cheers,

The Y-man
 
From what we have done in the past (in Victoria - so probably varies in other states), a "written offer" is the actual contract signed by the buyer with offer price and terms and conditions filled in - and the only thing that needs to happen for a vendor to accept the sale is for them to sign the same said contract.

Thanks for that. If the written offer is the actual sales contract then yes that would be fully binding - I thought the written offer was simply a nice letter to say "Hi I'm Bob, you take $300,000 for property yesno?"
 
Thanks for that. If the written offer is the actual sales contract then yes that would be fully binding - I thought the written offer was simply a nice letter to say "Hi I'm Bob, you take $300,000 for property yesno?"
I think you're right. It doesn't look like the OP has exchanged contracts yet, it only looks as if he has put in a written offer and is waiting for them to accept, after which they can then exchange contracts and make it binding.
 
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