Buying a home

[Noona30]

Hi everyone,

just wondering what the one frame is like for buying a property. How long from finding. Property you like to moving in date? What are the steps in between? Is the market fast or slow?

thanks

[snifter]

Depends on you and the vendor really. 

When we were looking we spent about 3 months house hunting, went to lots of opens most weekends, even if we were not keen on the houses, we wanted to get an idea of the market in the areas we were wanting to buy and the types of houses within our budget, to see how quick it moved, what price range people went for (ie investors often snapped up the standard block with the shoebox shaped 3 bed 1 bath house) and the areas in general. It became clear there was a cut off point money wise that investors tended to stop at and so the homes going for more than this were usually other families, not people wanting an investment property. We avoided anything at auction. 

We put in 3 offers for houses, the first two we lost out on as both went well over even the top list price of the house (by $20,000 on one house, $17,500 on another). However, with hindsight we are really pleased they did as tbh they were not the right houses for us in terms of area and schools but we did like the houses. 4 plus years on, the house we did buy we still love. The area suits us so well and we are happy as anything. Defo the right choice for us. We were one of 4 offers I seem to recall. Vendor liked our terms, that we had no property to sell, so went with us. 

In terms of the process, iirc it was put in an offer, with our settlement terms (ie how many weeks to actual sale completion you wanted, if you could be flexible) if it was accepted we signed the contract and then had 48 hours (working days) in which to change our minds or else were locked in (unless finances fell through, think that was the only way out of the sale). So ideally want to sign a contract just before the weekend so you have an extra couple of days to think it over (double check this is still the case as things may have changed). That's what we did and we had a building inspection first thing on the Monday, report was back that evening and we were happy to proceed so didn't withdraw the offer. The vendors were locked in from when that contract was signed, no pulling out for them. 

Then the settlement date came round, money was paid and we got the keys. Moved in that afternoon  So for our house, 5 weeks from offer to keys. Others I know have done it in 2-3 weeks, some got 3 months settlement and more. In terms of the market, you need to keep an eye on the property sales and see what is selling and where. You soon get used to realestate.com.au and checking it for sales, under offers etc in areas you are keen on. 

Most sales are best offer by or they list a price range and you make an offer within it (or under or over if thats what you think its worth) and see if they accept. Some want flexible settlement, longer one, some vendors its all about who offers the most money. Ask the agent what the deal is and see if there is wiggle room on your settlement offer. The best offer by sales are harder to judge. I went to an open recently and no way would have paid the price it eventually went for. But someone was happy to offer 50k more than I'd have been prepared to pay to secure the property. Agents should let you know if they have offers on a property you expressed an interest in and want to make an offer on. To give you chance to submit it before they go to the vendor with the pile of offers (or only one or two perhaps).