Some basic questions

[hamm]

So I'm looking into buying my first property and I don't know anyone that has been through the process so if you guys could help me out with some (very) basic questions it would be much appreciated.

Firstly, when people talk about getting valuations done are they refering to a bank valuation AFTER they have put in an offer and are seeking loan approval? Or do you get an independent valuation done prior to making an offer so as to better guide you?

And secondly, (i'm in WA) if a contract is signed with clauses such as pending finance, pending building / pest inspection etc.. can you still pull out even if finance is approved and nothing comes up in the inspections, ie, you find a better deal in the process, or LVR is not what you expected etc - do you need proof that there is an issue with the house / finance or can you pull out regardless of inspection outcomes?

Thanks in advance for any responses!
Hamm

 

[Aaron_C]

Answers:

1. They are referring to a valuation done by the bank's own panel of valuers. No point getting a valuation done by yourself because it usually can't be used by the bank anyway.

2. No you can't pull out if those 'subject to' terms give you the all clear. If you try to pull out, you'll then be in breach of the contract.

 

[PRAV_J]

http://www.housing.nsw.gov.au/Home+Buying+and+Building/Buying/


This link though is for NSW is quite informative esp the checklist and the a-z oF home purchase.

Hope this helps.
Regards,
Prav

 

[spludgey]

I'd be very surprised if nothing came up with the building inspection.
As long as you buy a house that's a few years old, it'll always have one issue or another.

 

[hamm]

Great, thanks for the responses guys and thanks for the link PRAV just the kind of info I was looking for.

Cheers.

 

[porp_e]

Great, thanks for the responses guys and thanks for the link PRAV just the kind of info I was looking for.

Cheers.

hi hamm,

here is a similar link but with specific info for buying in WA http://www.commerce.wa.gov.au/consu...Property_renting/Buying_and_selling/index.htm

all the best with your purchase!

 

[JohnHenry]

Answers:

1. They are referring to a valuation done by the bank's own panel of valuers. No point getting a valuation done by yourself because it usually can't be used by the bank anyway.

2. No you can't pull out if those 'subject to' terms give you the all clear. If you try to pull out, you'll then be in breach of the contract.

There is cooling off period, so if you try to pull out the deal, then the worst thing is that you'll lose the deposit :-|

 

[spludgey]

There is cooling off period, so if you try to pull out the deal, then the worst thing is that you'll lose the deposit :-|

You don't have to buy with a 0.25% deposit and a cooling off period. Personally I wouldn't use a cooling off period unless I thought there was a good chance that a third party might make an offer on the property.