I think the FHBs are vulnearable to this sort of error because some REA encourage them not to do DD first. For example: in a letter of acceptaqnce from REA I received not so long ago, they included a page containing 'important info for purchasers" and at the bottom it has "SUMMARY OF STEPS WHEN PURCHASING AS FOLLOWS" (in capital letters)-so it is strongly emphasized.
1. Agreement of purchase price
2.Payment of deposit to agent
3. Sign contract for sale for agent
4. Exchange of contracts affected by agent
5. immediately organised pest inspection and building inspection reports required
6. Immediately apply for finance if required
7. Contact your solicitor
8. Outstanding balance of deposit paid to agent (prior to expiration of 'coolong off' period)
If I was a FHB, I would think that these are the right steps to take (and in that order)-specially if it iw written on a coloured, glossy, and classy looking print?
But as non-FHBs, I will change the above order by placing #5,6,7 after #1, and never give deposit to agent without the 'nod' from my solicitor. I think PROPERTUNITY posted a very good summary for NSW buyers.
But the majority of members in this forum is 'investor' or non-FHB. So somehow many of the FHB don't get it, until they encounter problems. So, may be THIS FORUM have a place in the popular media? (i.e someone with knowldge and experience from the forum write an article for major media/present in the television station?)
I still recalled the feeling (of not knowing & not in control) when we bought our PPOR (first house purchase). I still remember the 'experienced' agent's way to sway us to the direction she wanted us to take.
FHB can easily influenced by 'selected words' from REA; so in the first instance EDUCATION IS A MUST!.
There are cheap books available or even online info. I used the old 'home buyers guide' and still referring to it in my current purchasing process.
Engaging a good convayencer from the on-set is a 'must' . I used the same solicitor for the last 12 years for several purchases and we get to establish a good business relationship that way.
Sadly, we on SS seem to be getting hammered with unexperienced buyers happily signing binding contracts and then wanting out at the last minute.
Reminds me a lot of the Melbourne Docklands fiasco panic ... and that turned out ok.