Buyers Guide

Buying a home is not only one of the largest purchases you`re likely to make, it can also be one of the best long-term investments – so it`s important that you get it right.

Whether buying a home to live in or as an investment, you need to approach the process in a methodical manner.

Firstly it is essential that you organise your finances before you purchase. The loan amount will dictate your ‘best’ purchase price. Always seek independent advice when it comes to the tax implications and relevant financial details of purchasing a property.

You then need to do a little more homework making sure that the property you are buying is the right one in terms of price, location, value, size and lifestyle.

Here is a checklist of things you may want to consider:


This is perhaps the most important of all aspects having the greatest influence on the potential capital growth of your investment. Even a beautiful house with all the latest mod cons will not make up for the fact that it is 5 kilometres from transport and shops, if that is a priority. Once you have found a property that suits you, it is wise to check it out during the week as well as on the weekend, as a peaceful environment one day might be quite different at other times.

Building Inspections

Builders, architects and tradespeople can be of assistance in providing a pre-purchase assessment. This will detail Any faults the property may contain, such as cracking, dampness and leaks. Advising the budget for any necessary repairs or wanted alterations.

Auction or Private Sale

There are two main ways to buy a home – by private sale or by auction. Bidding at Auction for the first time can be daunting. It is an emotionally charged and fast-moving atmosphere. Auction day is final. If you turn up to bid and you are the highest bidder above reserve, you will be required to sign an unconditional contract and pay the 10% deposit and proceed with the purchase. Some of the benefits of buying at Auction include: It is transparent, you can compete with other bidders in an open forum and you are aware of other offers being made. The sale and signing of documents all take place on the day. Buying by Private Sale involves a process of negotiation between you (the buyer) and the owner (the Vendor). The property will have an advertised price – the starting point for negotiations and these negotiations continue until both parties agree on price. Unlike an Auction, the negotiation process is not as transparent, however the speed of the process is not as frantic. There may also be a cooling off period.

Cooling Off Period

You are entitled to a cooling-off period of three business days. This means that you are legally able to withdraw from a Sale Contract if you change your mind during this time. However, it is important to remember the cooling-off period does not apply in the following circumstance:

  • If the property was bought at an auction or within three business days before or after a scheduled auction;
  • If the purchaser is an estate agent or corporate body/owners corporation;
  • If the purchaser has obtained independent legal advice before signing the contract;
  • If the vendor and purchaser have previously entered into a Contract of Sale for the same property on substantially the same terms;
  • If the property is used mainly for industrial, commercial or farming purposes and in the case of a farm is not more than 20 hectares in area.

How to Cancel, a Contract During the Cooling Off Period

Written notice must be given of the intention by the purchaser to cancel the contract within the cooling-off period.
The purchaser is entitled to a full refund of all money paid, except for $100 or 0.2 percent of the purchase price – whichever is greater.

Making an Offer

Missing out on a property can be a very disappointing experience. So it is important to understand how the process works

When making an offer to purchase a property, it is important to be aware of the following:

  • The agent will submit all offers to the vendor.
  • The property remains on the market while the vendor considers all offers. Just because your offer is the first one submitted, does not necessarily mean that it will be accepted.
  • Your offer may be made subject to a finance clause or other conditions such as a builder’s inspection.
  • You can also make your offer conditional on certain terms, such as special light fittings, plants or appliances, being included or excluded from the contract. Any special conditions such as these must be written into the contract.

Once the offer is made in writing, it is then up to the vendor whether or not to accept it or give other parties the opportunity to increase their original offers. An offer is not legally binding on both parties until the buyer and the seller have signed a Contract of Sale or Contract Note which contains details of the property, the price, deposit and settlement terms. The agent is not obliged to give you another opportunity to increase your offer. If your offer is accepted, a cooling off period may apply

For more information on buying a home, please contact our office on 9527 1211 or Contact Us.