Property Buying Checklist

[Peter_Tersteeg]

Is this list the secret to being a Buyers Agent? This is all you need?!

I could tell you everything you need to know and do to perform a scuba dive to 80 metres, I'll even give you a checklist to work from. I'm 95% certain that you'll still either drown on the bottom or die within a few hours after the dive from the bends or an air embolism. I hear drowning is the most pleasant option.

Checklists are very useful, but practical execution still requires a lot of training and baby steps to get there. This is a fantastic starting point but I would expect a buyer agent to have a more intimate basis of understanding which comes best from experience.

 

[S.T]

If a heart surgeon gives you a list on how to perform a complex procedure, can you do it?

It's all about the unspoken learned concepts which make you successful.

Uhm heart surgeon and someone buying a property = apples and asparagus?!

The comparison is laughable! Not sure how long it would take to study to be a heart surgeon, but 8-10 years wouldn't be unreasonable. Compared with a 6 months course to be a buyers agent?

My comment was a bit tongue in cheek, but the fact is people are being trained every day via documentation. This is an extremely detailed list on what to cover off when buying a property. There are a few other items, like negotiation that danwatto mentioned below which would require separate skills, but even then I'm sure someone skilled in negotiation could document steps that could easily be learnt. There are some great tips of negotiation via threads on here already.

This is the beauty of the sharing of information on this forum, those of us who may never learn such skills are given the chance to without having to fork out 10k. It's very good of Matt to share his information with all on the forum.

 

[knightm]

Uhm heart surgeon and someone buying a property = apples and asparagus?!

The comparison is laughable! Not sure how long it would take to study to be a heart surgeon, but 8-10 years wouldn't be unreasonable. Compared with a 6 months course to be a buyers agent?

My comment was a bit tongue in cheek, but the fact is people are being trained every day via documentation. This is an extremely detailed list on what to cover off when buying a property. There are a few other items, like negotiation that danwatto mentioned below which would require separate skills, but even then I'm sure someone skilled in negotiation could document steps that could easily be learnt. There are some great tips of negotiation via threads on here already.

This is the beauty of the sharing of information on this forum, those of us who may never learn such skills are given the chance to without having to fork out 10k. It's very good of Matt to share his information with all on the forum.

I agree buying property is not brain surgery, but there are lots of professions which aren't and I would still use their expertise. In this field a few include Mortgage brokers, solicitors, property managers. If I wanted I could realistically do everything they all offer myself. How steep would the learning curve be and how much time would I input into becoming a 'jack of all trades'. For me it's not worth it I would rather do what I enjoy and I am good at and let others do their part.

I developed this list over 12 yrs of investing and only made it pretty with my logo when I set up the buyers agency. I never intended it for others but my clients started asking for something, so I give them this to use and follow along. The original is a PDF with logos and a lot of extra hints like all the points in the journey where you can get help from your mortgage broker, buyers agent, solicitor etc etc . It shows how much of a team effort the process is and it shows many of the areas/categories of work a BA does. I removed all those notes and logos as I didn't want it to be promotional, just raw information for people to use. I believe that for those who really want to learn to process, access free or cheap info, take their time, there is probably no requirement to use a BA. For those willing to spend the time reading all the good books and spending solid time on this forum, for example. I still want people to succeed.

This list is risk management for those that want it. In no way does it replace what a BA actually does.

For all those who have more urgency to purchase, are time poor, want experienced help, want to reduce stress, want to know they won't screw up the process, or want the benefit of a BA who has built relationships with selling agents, is regularly negotiating price and terms, has access to expensive paid data, and want the best outcome I obviously (obviously) believe BA's have something to offer.

Some of what we offer can be easily quantified, other parts are more in the ether but still real, this is where experience matters.

I guess professional athletes use coaches to condense the time it takes to make mistakes because they have such a short time to reach peak performance and try and become the very best in the world at a young age. Coaches can be helpful in other areas of life for the same reason. Not everyone wants to take that path, I am fine with that. Anyway, regarding the list I hope it's useful. It wasn't a comment on BA's in either direction.

 

[knightm]

Stage 4 - The harvesting!

Great idea Rixter, how about a list of options for harvesting? (the when, the why, the how -etc)

 

[Rixter]

Great idea Rixter, how about a list of options for harvesting? (the when, the why, the how -etc)

Have a scroll & surf through a few of these threads..

Lots as you can see..

 

[knightm]

Have a scroll & surf through a few of these threads..

Lots as you can see..

There there is lots, and good info too, thanks. Not so easy to condense into a step by step due to the variations of strategy. I guess one could make the list for the actual selling process but the decision on if/when/why to sell is more strategy related isn't it and less list friendly perhaps.

 

[Sam1980]

Thanks.

Knight, thanks for sharing valuable info.

Recently I bought place in Sydney and used this checklist for final inspection for price negotiation. Hope this helps community.

 

[knightm]

Knight, thanks for sharing valuable info.

Recently I bought place in Sydney and used this checklist for final inspection for price negotiation. Hope this helps community.

That's a good one sam thanks

 

[roypropertyinv]

STAGE 2 - THE BUYING PROCESS

1. Receive mortgage documents from lender. Sign and return these to lender.
   

Quick query on this stage - who do you get to check these for you to make sure not signing up to something that you shouldn't be?

 

[4GH1RH]

Thanks for sharing this valuable information. For someone just about to buy a PPOR and IP2 but just a newbie this is invaluable. That is something I like about investing is people that are involved in it are generous with their knowledge and experience - as this forum shows.

Thank you!

 

[Baker]

^^ +1 to that.

As a complete newby, I don't know what there is that I don't know. Posts like these provide some fantastic reference points.

 

[knightm]

Quick query on this stage - who do you get to check these for you to make sure not signing up to something that you shouldn't be?

Great question. You can certainly have a solicitor check them but they will want to charge. You might find some who do this as part of conveyancing fee, others won't. If you are concerned it would be worth an hour of their time even at $350 or whatever they might charge. Personally I just read them (about 3 times) slowly and carefully and make notes if anything is unclear or sounds dangerous. If I find something that worries me then I can take that to solicitor which targets my info request and reduces the fee though wasted reading time. You can also go back to the lender and argue with them directly.

Many people don't even read the things. At least if you do that you will be 1 step ahead.

 

[knightm]

Thanks for sharing this valuable information. For someone just about to buy a PPOR and IP2 but just a newbie this is invaluable. That is something I like about investing is people that are involved in it are generous with their knowledge and experience - as this forum shows.

Thank you!

To you and Baker thanks for the encouragement - its energising to share and hear of people getting a benefit.

 

[jim_88]

Thanks for this.

 

[knightm]

Its been a while so over the next few weeks I might do some tinkering with this list and see what variations I can come up with.

 

[chunho01]

Its been a while so over the next few weeks I might do some tinkering with this list and see what variations I can come up with.

+1 Awesome! I made a note to copy this somewhere, now I should wait for the latest ver instead

 

[JameZ]

Ss needs a save thread

This one will def go on that list

 

[MIW]

Exhaustive!

+1 but interesting. I suppose the renovators miss out!
Anyway great effort and well done, I just hope any newbies do not give up investing after they realise what it involves?
I tend to think buying is the easy part and you learn hands on, but finding the right deal, the location, and analysing heaps of facts or data takes me the longest... But, everyone will like their cup of tea or coffee different, right?
I admire the effort and time spent on this.....

 

[knightm]

+1 but interesting. I suppose the renovators miss out!
Anyway great effort and well done, I just hope any newbies do not give up investing after they realise what it involves?
I tend to think buying is the easy part and you learn hands on, but finding the right deal, the location, and analysing heaps of facts or data takes me the longest... But, everyone will like their cup of tea or coffee different, right?
I admire the effort and time spent on this.....

Miw I did think of renovators but there are so many sub variations to a reno depending on what you buy. Can you think of a way to add it in without it being another 100 points?

 

[MIW]

Miw I did think of renovators but there are so many sub variations to a reno depending on what you buy. Can you think of a way to add it in without it being another 100 points?

Unfortunately renovation is a whole new educational process on its own. I did attend Cherie Barber's course and came back with boxes of materials, so I have learned lots in theory, BUT nothing beats the actual reality!
I am just completing an IP in Coogee, and yesterday when I saw your list I just thought about my strategy, where I like to add renovation in todays market to add value to rent, or basically to be able to rent renovation free (if that's possible?) for the next 10-15 years. If I am around I will post a thread then... I haven't posted one yet, one day I promise.
However, thanks to your checklist I created a spreadsheet today, trying to figure out the comparison fees and overall costs for Managing Agents that I hire. It is so much more complicated in Sydney, right?
My frustrations are in that they lack transparency in total $ cost or % of gross yield and flexibility in lease terms (other than 6 or 12 months). So how to negotiate with Property Management Agreement could be another idea for a checklist, trust me there's so much to cover there, right?
At least one agency quoted from horses mouth that the total fee comes to about 11% (this being 7% management fees so the rest is pulled in from all those other expenses - advertising, lease renewal, yearly statement, administration fee, on and on and on). Yet another quoted 5% management fees and then had all these additional fees for handling claims or providing valuations, and so on and on and on...
Couldn't we lobby the government to ask the agent to disclose the comparison fee, the way banks are supposed to, perhaps then the whole process would be so much easier for us trying to debacle it all, IMO?
Basically, I like your checklist but then you could create checklist of just about any process in details, even how to proceed with a purchase of a property wether with or without renovation in mind, how to negotiate this whole process...
You see in your checklist when you point out submitting an offer, I always do it on paper with a deadline and depending on how many conditions I wish to negotiate I will make few offers just in that one offer....
Well, I do not wish to get into details but I have copied your checklist for our kids, so if they are ever interested I can expand or help or explain to them.
By the way when you work out the structure get in touch with a good accountant or lawyer, I wish I did that at the beginning in my wealth journey. Having the best people in your team, early on can save lots of $ and time along your wealth building journey.
So thank you for your input!