In a nutshell – there are five critical steps to buying a house in New South Wales. First, it’s paramount that you wear the project manager’s hat and instruct your team to make it happen.
Here’s what to expect as well as some really good tips and hacks.
1. Organise Your Finance
Get preapproval on your finance – at least six months in advance. Know your budget.
Tip – Not all brokers are equal – find a broker and ask about their approval track record rating.
The broker I used is Gina Neoh, who has an excellent approval success rate of 97% https://www.linkedin.com/in/ginaneoh
2. Identify the Location
Circle a region or area you want to buy in and focus on this area. Decide on the type of property you want such as how many bedrooms, bathrooms, garages, etc.
Hot Tip – Make searching and inspections easy. Set up alerts on your app of choice www.realestate.com.au or www.domain.com.au. Find out what agents work in the suburb that you are focused on – get to know them to form a relationship – consider them part of your team. Opt-in to their databases and have listings sent straight to your email box to take advantage of off-market opportunities.
Hot Tip – If you want to secure a property, have your 10% deposit ready to go – Jon Luton from Byron Bay Real Estate Agency said properties for sale in the Byron Region are hotly contested and are sold ‘in the twinkle of an eye.’
3. Submit an Offer
When you decide to place an offer on a property, you need to request the agent to give you a copy of the sale contract for that property.
Top Tip- send the sale contract to your conveyancer/solicitor to check for any red flags. After they advise that it is in good order, submit your offer.
Many agents will also request a deposit at this time. When selecting a conveyancer, you should check they are registered with NSW Fair Trading – this is a requirement by law.
Top Tip- even though you can make a verbal offer, make sure you also submit it in writing.
4. Negotiate the Contracts for Exchange
Once your offer has been accepted, and you have paid the deposit (usually 10% of the purchase price it’s time to exchange and sign the sales contract. This is a legally binding agreement that completes the purchase process.
Top Tip – A five-day cooling-off period after the date of exchange is standard when buying a house in NSW. This period allows a purchaser to withdraw from the contract with written notice. If you do withdraw from the contract during cooling off, you will be required to pay the vendor 0.25% of the agreed purchase price.
5. Prepare for Settlement
After the contracts have been exchanged, you will then have approximately six weeks until settlement (this can vary from 4 – 8 weeks). This period is used to finalise the payment on the property and for your conveyancer/solicitor to prepare legal documents in preparation for settlement day.
Top Tip- Place the champagne on ice and wait for the notification that the property legally belongs to you and pop the cork, and start celebrating!