Researching the Property Prior to Auction
When you are purchasing a property that is marketed for auction you will need to conduct research to ensure the property checks out for you. The contract for sale of the property needs to be reviewed by a solicitor and if it is a freestanding property or Torrens title property then a building and pest inspection is mandatory. If the property is an apartment or strata title then a solicitor will also need to order and review a strata report. You should also ensure that the property is in your price range. Regardless of what the Real Estate Agent has indicated the price guide is for the property, you should conduct your own research. Buyers Agent tip Find out the recent sales of properties in the same street and area and compare them against the property you wish to purchase, you can do this by logging onto www.homepriceguide.com.au. If there are any current properties for sale in the area, you should view them and compare the home and price against the property you wish to purchase.
Bidding Process
If the property checks are in your favour and you have decided to proceed to auction then you will need to ensure that you have photo identification with you on the day and register prior to the auction commencing. At registration you will receive a bidders paddle or number and you are required to display this each time you place a bid. At the start of the auction the auctioneer will read the terms and conditions of sale by auction as advised in the Property, Stock and Business Agents Act.
Positioning yourself at the auction is important. Buyers Agent tip Ensure you are standing at the rear and can view your competitors. Ensure you place all bids in a strong and confident voice. During the auction the vendor is only entitled by law to present one bid. This will be announced by the Auctioneer in a clear manner to all prospective purchasers. Buyers Agent tip Listen for indication that the property is on the market from the auctioneer, this means the bidding has reached the owners reserve and will now sell to the highest bidder, or be bold and ask the auctioneer if the property is on the market. Under the Property, Stock and Business Agents Act new laws state that dummy bidding is now illegal. Anyone caught using this strategy at an auction are now liable for large fines and loss of license for Real Estate Agents.As soon as the hammer falls, the highest bidder is the purchaser and as soon as practical must sign the sale of contract and produce the deposit, usually 10%. Buyers Agents tip A smaller deposit can be negotiated prior to auction. This deposit will be held in a Trust Account until settlement. Please remember that there is no cooling off period for the buyer under auction conditions.
Post Auction & Settlement
The solicitors will obtain the sale of contract and organise the settlement, usually four to six weeks later. On that settlement date a final settlement inspection is to be conducted by the prospective purchaser. This is to ensure that the property you are purchasing has all the inclusions and fittings listed on the front page of the contract. Retrieve a copy of the front page from your solicitor and check everything. Once the final settlement inspection has been completed notify the solicitor if everything is okay or not. You will need to pay the remainder of the purchase price at settlement. Once settlement has occurred you will then become the new legal owner of the property and you will be ready to move in!!
Enlisting a Professional Buyers Agent
Why would you pay someone to purchase your home or investment property?
A busy life for families, young couples or executives does not leave any time for house hunting, and weekends should be spent with family and friends not real estate agents. The benefits of enlisting a buyer's agent is that you have experienced people who have bought numerous amounts of property before on a regular basis. They are professional negotiators, and in most cases ex- real estate agents that know the tricks of the trade. Buyer's agents can also produce property that is only For Sale quietly, they are called Silent Sales. Looking for the jewel in the crown property requires time and persistence, if you are only looking at 2-3 properties every Saturday you are missing out viewing other potential properties during the week. Buyers Agents are able to view and search approximately 20 – 30 properties a week.
Finding a suitable property for the client and the process of buying is much more quicker when enlisting a Buyers Agent. Once a suitable property is found for a client, contracts can exchange within 1 – 2 days. Because they have experience at purchasing property they know the entire process and can organise building and pest inspections, solicitor's, property stylists and finance. Most clients when using a buyer's agent purchase a property within six to eight weeks.
Buying property can be very emotional and stressful; Buyers Agents eliminate all of this and only represent Buyers. Unbiased advice is given on property and can stop buyers from impulse buying, or from paying too much for a property. Buyers Agents have information on current sales in all areas of Sydney and can accurately valuate a property for the buyer.
Some vendors are still expecting their property to fetch a 2013 price in 2014. Recently a client saved $100,000 from purchasing a property that their buyer's agent said was way over priced. The client made contact and advised that he was looking to purchase a property at a certain price. Because the Buyers Agent knew the area intimately, the client was advised not to purchase the property.
With a professional negotiator on your side who negotiates property everyday of the week it is amazing how in most cases a buyer's agent will negotiate away their fee, and a lot more .We all know how nervous bidding at auction can be so it really does make sense to have a buyer's agent bid for you, for as little as $550.00
Buyers Agents are also a great relief for Interstate clients and Australian Expatriates. Their time on holiday in Australia is limited and should be spent visiting relatives and friends not searching and negotiating property. A brief is taken from the client and properties are delivered to them by digital photographs or they simply fly in for the weekend and pick a property off the shortlist their buyer's agent has produced. They really appreciate the unbiased advice from their buyer's agent and feel confident that they have purchased the right property at the right price. Again Buyers Agents can stop overpricing for Interstate or Expatriate clients.
Peter Kelaher Managing Director of Sydney's first and Largest Buyer's Agency says he buys properties for three and four million dollars for expatriate's unseen. In other words the purchaser has seen digital shots of the property, and may have had a relative view it at some time when it was for sale. Should clients be purchasing for investment reasons Buyers Agents will source the best property to purchase and then appoint a property manager to manage the property.
Kelaher says since bringing the whole concept to the shores of Sydney 17 years ago the industry has grown significantly. Kelaher says there are about 10 of them Australia wide now.
Kelaher says that his company also offers a free sales advisory service to people selling their home. Because he deals with all the agents on a daily basis he knows who to use, and most of all not to use when a vendor is selling their home. The Pk Property Sales advisory consultant will negotiate the best sales commission, advise on marketing and most of all realistically tell you what you should achieve in the present market at sale time.For more information on this service go to www.pksalesadvisory.com.au