House Buying Advice

[TimberFloorAu]

Originally Posted by Hayles

Hi guys im hovering over a notice of offer here on a house that I really like - it had its second open viewing yesterday and dont think anyone else went to it. Its on at 360-390k and I dont know what to go in at. Dh reckons 340k.

Have you researched the street?
Recent house sales, and achieved prices?
How many locally have hit the auctions?

Pays to be upto speed.

A house is only worth what you are willing to pay for it, however, dont get caught up in the speed of everything...

Here , make an offer, and 40 mins later you have to get insurance on your new purchase.

Be careful..

Follow some guides I think we posted on the site about, offers etc... and dealing with agents.

Agents represent their client.
The client has no idea what the agent says or does, until they have said and dunnit...
That being the case, if you start negotiations, do not let the agent say this that and the other.. cos 99% of the time its bullshit.

The difference in agent fees, on a 360k or 390k sale is miniscule..

The difference to you is 30,000 dollars.. !!! which can represent 300 bucks a month extra in mortgage ! Dont let a bullshitting agent, talk you up ( upsell ) an offer you make.

1. do your research.
2. if you are gonna make an offer do it in person at the sales office, with you and your partner.
3. be prepared to PRC your offer:

• P - present
• R - reinforce your reasons for the offer
• C - confirm your position

4. get your finances in order before making any offer, so thats a mortgage in principal. Get the details, and contact a building inspector and a pest inspector, and ask them what they charge, and how soon--when you call they can:

• turn up and do inspection
• get the info back to you

5. when going into the agents office, have your folder ready:

• deposit ( cash / cheque ) read the small print regarding the terms of the contract in relation to deposits, and the basis of the sale
• basis of sale subject to finance, building and pest, and I would add SEARCHES

6. have your conveyancer lined up, to get working on your contract ASAP.

When presenting an offer, dont just say:

Oh we love it, we fancy starting the ball rolling with an offer of erm.. errr.. 340k , what dya think?

NO NO NO

Sit down with the agent in private, and I personally would say it like this:

Hi Dave ( insert name ) , regarding the property at 123 abc street, I would like to update you on our initial thoughts and the viewing we had last week.

Okies, let me explain our situation, we are first time buyers, we have finance approved in principal, we have our legals / pest and building on standby.

Now , we are looking at various houses in this area, and it basically comes down, to VALUE.

We have a set budget in mind, and we are sticking to it. There are 4 other propertys locally, of similar character and varying prices, however we feel we would like to present an offer on this property.

Before we do, let me explain, I havent got the time to run around, playing dutch auctions. Our offer is based on initial research of the area, the speed at which we can complete, and our position as a buyer.

We would like to offer :

$355,000 to include carpets/curtains/shed/light fittings and whatever else.
This offer is based on a contract of 30 days, we have pre approved finance, we can put down a $5k deposit, we have building and pest ready to go, and we feel in the current housing market and what else is available this is a fair offer.

I/we are negotiable to some degree on certain parts of our offer, regarding curtains and shed etc...

We want to sort a place out in the next 3 days.

If they fob you off and say we are not prepared to goto contract at this price, re stipulate your position, and inform him that you would appreciate some feedback, within 3 hours, as you have 2 days off work to sort a house.

He is contracturally obligated to present the vendor with the offer.

I personally would ensure that you do a written contract there and then, and say I will deposit $500 today here and now, and the balance of deposit when you come back to me today ( with the countersigned contract ), or on completion.

Thats my Guide

Edit: I have taken this out of another thread and stuck it here as it has some good advice in. Kath

[Pebbles]

Thanks Ste, brilliant advice.