When a buyer’s journey starts it can be between three to eighteen months from the time the awareness and research begin until the day of settlement takes place on a home. This journey is full of emotion, frustration, reality checks, often stress and uncertainty
A buyer’s agent can act as a guide and mentor through this process and can save considerable time, and wasted energy, and prove invaluable in understanding the processes involved, or understanding the market conditions and property values. The range of emotions experienced should never be underestimated in this phase.
Relying on a sales agent in this journey is one approach but typically not in your best interests, a buyer’s agent is there to perform and support you in acquiring a property. A Buyers Agent has your interests at heart versus the sales agents who represent the vendor and have no obligation whatsoever to you as a buyer. Buyers Agents know the data, what to look for and, how to work smarter. They have better contacts and will generally provide you with a far more pleasurable buying experience.
The journey for the Buyers starts with awareness and understanding that they will need to do something to get into the property market. They then seek to discover what options are open to them – what areas to consider, property options, and finance types.
The research cycle starts when different properties, suitable locations, and different options are considered. These considerations are impacted by the family requirements, the budget, property type and what areas are most suitable. What will their money buy? Having finances arranged at this point is a key consideration is one of the key starting points and considerations
I often advise clients not to waste time looking at property till they have their funds arranged and quantified their budget… With an ability to perform then that is the time to start looking.
Research always has a strong online focus. 90% of the searching is done here.
Typically, questions will involve:
What is the growth rate in the suburb?
What is the correct value in that suburb?
Is this a good street with good neighbours,
What are the people like that live here?
What are the schools like? and how far away are they?
Is there good transportation and facilities,
Are their local shops?
How close are my family and friends?
When a suitable property is found then it is decision time.
More questions are asked:
What is the real value of the property I am looking at?
How much should I offer?
Who am I competing against?
Can I negotiate a good price?
Will they accept some of my conditions
What else is happening nearby that I need to know (other developments, material facts etc)
What settlement terms can I get
Can I get the property before an Auction?
Your decision is made on the property, now executing the process is critical. Getting guidance can be very beneficial …. There is no substitute for experience.
Do you need assistance with this?
Creating an Offer strategy
How to structure your Offers and how they look
Are your offers unconditional (66W)
Do your offers satisfy the vendor’s settlement requirements?
Do you have a ten per cent deposit ready to go?
Is your finance preapproval confirmed in writing?
Is your offer ‘frictionless’… where the only consideration is the price?
Does your offer create absolute certainty for the vendor that you will perform and settle on the house?
Has your legal representative reviewed the contract and ironed out any problematic conditions?
Have you completed and reviewed the Pest, Building and Strata Reports?
Have you made the due diligence inquiries needed in the local area?
If you were to sell this property would someone else buy it?
Once your offer has been accepted there are several parts of the process that need to be monitored effectively. Getting the correct purchaser details for the contract, identification and address details, providing your solicitor details etc. sometime your solicitor or conveyancer will take over this role for you. With a Buyers Agent, it is all done – streamlined, efficient and smooth.
The key part is having your deposit funds transferred to the selling agents’ or lawyers’ trust accounts.
I always confirm “Offer and Acceptance” and the amount agreed by email. When transferring deposit funds make sure the property and your details are referenced in this transfer to avoid any confusion. Provide a copy of the remittance to the agent and notify your legal representative.
You will be forwarded page one of the sales contract for signing. This same process will occur with the vendor. Once both parties have signed the contracts can be exchanged by the lawyers (or the authorised sales agent). Signing by way of electronic formats such as DocuSign has been a godsend in this regard (thanks to Covid). This is where all parties agree to transact electronically and typically PEXAR the legal settlement platform will also be used saving everyone time and money)
Critically the purchaser should check 10 days before the agreed settlement date with their financier to make sure the settlement funds are okay for settlement day. On the day before the settlement make a final inspection of the property to ensure all items are in the house and in working order per the contract terms and conditions. Once you have given the approval the lawyers are ready to settle the property at the agreed time and place and exchange mortgage documents and payments with banks, pay outstanding monies and settle out the vendor.
Once the settlement has been completed the lawyers will put an “order on the agent’ to disburse funds held in trust for the purchaser. From the trust funds, the agents take their commission and forward the fund balance to the vendor.
The strategy and process involved in purchasing a property can be critical to achieving ultimate purchasing success.
I specialise in helping purchasers maximise their effectiveness in acquiring a property. I help with using their time effectively, providing valuable insights and contributions to the process, and executing the acquisition process professionally. Failure in any of these three areas can lead to missing out on the property
If you would like further assistance or have any questions that need answering – contact Gary on the link below on email: [email protected]
