The order of proceedings

[Value Emperor]

Hi all,
Would like to buy a property in Brisbane, after months of looking , we've found one we'd like to make an offer on.
Does this sound like the correct way we need to go about it
1) talk to agent about price we are willing to offer
2) agent will come back with a higher one (we're offering less than ask price)
3) bit of negotiating may be likely but when agent tells us what is a reasonable offer to propose to vendor, we put in a formal offer on writing
4) offer in writing will have relevant sunset/build/pest clause - should this be drawn or examined by a solicitor? Also Offer 5% deposit or more to show we are serious
5) get the get building and pest inspection
6) if conditional offer accepted, get solicitor to do the conveyancing and the surveying?
7) if all in order pay balance by settlement date

This is the first time I've done this and though I've read a bit about what to do, I just want to be sure I'm following the right steps.
Is there anything I've missed?
Haven't mentioned anything about finance as getting finance is no issue.

Appreciate any advice.

 

[Rolf Latham]

Hi all,
Would like to buy a property in Brisbane, after months of looking , we've found one we'd like to make an offer on.
Does this sound like the correct way we need to go about it
1) talk to agent about price we are willing to offer
2) agent will come back with a higher one (we're offering less than ask price)
3) bit of negotiating may be likely but when agent tells us what is a reasonable offer to propose to vendor, we put in a formal offer on writing
4) offer in writing will have relevant sunset/build/pest clause - should this be drawn or examined by a solicitor? Also Offer 5% deposit or more to show we are serious
5) get the get building and pest inspection
6) if conditional offer accepted, get solicitor to do the conveyancing and the surveying?
7) if all in order pay balance by settlement date

This is the first time I've done this and though I've read a bit about what to do, I just want to be sure I'm following the right steps.
Is there anything I've missed?
Haven't mentioned anything about finance as getting finance is no issue.

Appreciate any advice.

Most offers are in the form of a completed contract...........so you want to make sure the contract is your solis / your satisfaction

ta
rolf

 

[Dazz]

I just want to be sure I'm following the right steps.

OK - try and avoid this step....

when agent tells us what is a reasonable offer to propose to vendor

 

[Jtkumnick]

Got it a bit backwards:

1. Get a solicitor you can work with.
2. Get a contract for the property from agent. (dont make verbal offers)
3. Take to your solicitor and fill out your details. (bear in mind solicitors lean heavily on the side of caution, and will want all kind of out clauses for you. You have to weigh up what you think is fair to you and the vendor.)
4. Present to agent.
5. Get response from owner on contract, whether acceptance or counteroffer.
6. Negotiate by changing the price on the contract page with your initials by it.
7. Contract becomes binding when signed by all parties and a full copy is sent to each.
8. Do Building & Pest inspection
9. Pay deposit
10. Pay balance on settlement.

If you PM me the address, im happy to look it up for you..

 

[Andrew_A]

There tends to be no single best option sometimes when making offers, can be an individual deal specific situation.

Always a good idea to keep a good relationship with the sales agent, if you are going to talk about price prior to putting in a written offer then talk lower than what you will put on paper, that way you can cross out the lower price and show the buyer that the sales agent has already negotiated you up in price

 

[LarryC]

Got it a bit backwards:

1. Get a solicitor you can work with.
2. Get a contract for the property from agent. (dont make verbal offers)
3. Take to your solicitor and fill out your details. (bear in mind solicitors lean heavily on the side of caution, and will want all kind of out clauses for you. You have to weigh up what you think is fair to you and the vendor.)
4. Present to agent.
5. Get response from owner on contract, whether acceptance or counteroffer.
6. Negotiate by changing the price on the contract page with your initials by it.
7. Contract becomes binding when signed by all parties and a full copy is sent to each.
8. Do Building & Pest inspection
9. Pay deposit
10. Pay balance on settlement.

If you PM me the address, im happy to look it up for you..

Dumb question from me. Can you outline the steps to follow for a property going to auction that you are considering to buying.

 

[Aaron_C]

Dumb question from me. Can you outline the steps to follow for a property going to auction that you are considering to buying.

The most important step to buying at auction is to get the finance ready. What I mean by that is making sure that you are able to purchase the property with a 20% deposit at the very minimum. I would be very wary of purchasing at auction if LMI is involved because there is no finance clause and LMI can be a pain to get approved.

 

[Jtkumnick]

Dumb question from me. Can you outline the steps to follow for a property going to auction that you are considering to buying.

Im in QLD so not really the one to answer for you in VIC, but I agree with Aaron,

1. Sort finance (if you are not paying cash), be very careful and thorough as you will not get a finance clause if you bid at auction.........
2. Get a solicitor. Run anything and everything by them BEFORE making offers or bidding.
3. Do your own research on the property, find out all you can and use the RE agent only to confirm your findings.
4. Build rapport with agents. The people that treat them like **** never get the good deals. Knowing where everyone is coming from helps get a better deal on better terms.
5. Ask a lot of questions, if you are friendly, people are usually happy to help.

Like I said, they are general rules, someone from your state will have to advise you on the actual contract steps.

 

[Jtkumnick]

Dumb question from me. Can you outline the steps to follow for a property going to auction that you are considering to buying.

no such thing as a dumb question.

 

[bellz]

Solicitors do searches, but not the survey - usually the buyer would organise this direct with the surveyor to my knowledge

 

[trinity168]

Got it a bit backwards:

1. Get a solicitor you can work with.
2. Get a contract for the property from agent. (dont make verbal offers)
3. Take to your solicitor and fill out your details. (bear in mind solicitors lean heavily on the side of caution, and will want all kind of out clauses for you. You have to weigh up what you think is fair to you and the vendor.)
4. Present to agent.
5. Get response from owner on contract, whether acceptance or counteroffer.
6. Negotiate by changing the price on the contract page with your initials by it.
7. Contract becomes binding when signed by all parties and a full copy is sent to each.
8. Do Building & Pest inspection
9. Pay deposit
10. Pay balance on settlement.

If you PM me the address, im happy to look it up for you..

Hi,

Additional question, where is the step where you get a bank valuation completed? This can be a deciding factor whether to proceed with purchase or not.

Thanks!

 

[Aaron_C]

Hi,

Additional question, where is the step where you get a bank valuation completed? This can be a deciding factor whether to proceed with purchase or not.

Thanks!

You get the bank valuation done after you have purchased the property.

 

[Rolf Latham]

Hi,

Additional question, where is the step where you get a bank valuation completed? This can be a deciding factor whether to proceed with purchase or not.

Thanks!

depends a little on the lender /broker you are using and the deal

if its a 90 % er I try and get to a val before we get to contract, but certainly before application to the lender.

In qld especially, there is a moderate chance your val may come in low, so dont waste a credit file hit to make an application with something that may never have come good

ta
rolf

 

[Aaron_C]

Sometimes pre-application valuations are not possible, but agreed, they are always preferred.

 

[Rolf Latham]

Sometimes pre-application valuations are not possible, but agreed, they are always preferred.

pretty much many lenders now and I dont like those much that dont : ) for transactions that need an upfront

wbc, anz, hsl, nab, AMP, cba

ta
rolf

 

[willair]

Hi all,
Would like to buy a property in Brisbane, after months of looking , we've found one we'd like to make an offer on.
Does this sound like the correct way we need to go about it
1) talk to agent about price we are willing to offer
2) agent will come back with a higher one (we're offering less than ask price)
3) bit of negotiating may be likely but when agent tells us what is a reasonable offer to propose to vendor, we put in a formal offer on writing
4) offer in writing will have relevant sunset/build/pest clause - should this be drawn or examined by a solicitor? Also Offer 5% deposit or more to show we are serious
5) get the get building and pest inspection
6) if conditional offer accepted, get solicitor to do the conveyancing and the surveying?
7) if all in order pay balance by settlement date

This is the first time I've done this and though I've read a bit about what to do, I just want to be sure I'm following the right steps.
Is there anything I've missed?
Haven't mentioned anything about finance as getting finance is no issue.

Appreciate any advice.

Just keep this in the back of your mind at all times,it's very easy to go up in price from a low offer,bit hard to come down,and learn this from the start it's your money,risk,ect,so control is 100% important and learn to say "no"and just walk away because no matter what all the fast-bucks sales people that are out there tell you ,you are the one left holding the can
sometimes full of gold or ##it,good luck..