All Topics / Help Needed! / First time buyer with questions…

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  • Profile photo of Stass1Stass1
    Member
    @stass1
    Join Date: 2012
    Post Count: 5

    Hi all,

    We're looking at purchasing our first property (ever) and have a few questions..

    The property is up for sale at $185,000 what sort of first offer should we be putting in?
    We're wanting to get a builders inspection just incase, how much should one cost and were do we find someone to do the inspection? Do we get the inspection before or after we make an offer?
    Is it better to go through a broker or find our own loan (I've had a preliminary talk with Aussie)?
    What's the process in submitting an offer, do we walk in off the street or do we need to make it more formal?
    Is there anything else we need to think of?

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi there

    1. Work out what you believe it's worth based on your due dilligence. Look at comparative sales, the vendors motivations for selling, market conditions, etc.

    2. They can range in price – anywhere between $300 to $900. It's a wise thing to do – but can often be carried out after the initial offer is accepted.

    3. I won't answer that one.

    4. Depends on the state – sometimes a verbal offer will suffice – sometimes you'll need to sign a contract stipulating the conditions of the offer.

    Anything else to consider? Is it going to be a PPOR or an IP (or a PPOR which will eventually turn into an IP)? This will impact on the finance structure. On a loan sub $250k, don't expect anything flash from the majors if you're wanting a loan with an offset.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of DubstepDubstep
    Participant
    @dubstep
    Join Date: 2012
    Post Count: 395

    Hi Stass1,

    Most people selling property put the for sale value higher than they expect to get, this gives a negociation range. I reckon the price they would be aiming for would be about $170,000. So I would place the first offer at $155,000 and negociate from there.

    I would definitely get a building and pest inspection done, nothing worse than termites and rot.

     

    Profile photo of LauryLaury
    Member
    @laury
    Join Date: 2012
    Post Count: 35

    The theory is that a broker will do all the running around for you and secure the best deal available, however if that was the case the majority of all brokers business would go to one bank in any given situation. It doesnt. Five brokers will give five different answers.  I think that it really comes down to time. If you have the time to spend on the net interpeting websites and making phone calls then a broker is not maybe as useful as if you are time poor or not confident to do your own research.

    Profile photo of Stass1Stass1
    Member
    @stass1
    Join Date: 2012
    Post Count: 5

    Hi,

    Thanks for all the comments so far we appreciate it. We're definitely going to make an offer. In our offer if we say the figure and then subject to finance and the outcome of the building/pest inspection is that correct or is there something else needed? Can we get an inspection post the offer being accepted and pull out if the inspection comes back bad? Is there a time limit they have to accept, decline or make their own price?

    Stass

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Stass

    No certainly you can make an offer subject to anything and as long as the Seller accepts it then all well and good.

    I would make the offer subject to finance on Terms acceptable to you and a satisfactory Building Inspection within say 14-21 days.

    This way you have peace of mind that the as long as both are ok then all systems go.

    Either make your offer through your Solicitor or get the Selling Agent to draw up the purchase contract and get your Solicitor to look over it first before signing. 

    Just make sure your mortgage broker has some experience as often with franchises like Aussie the consultant might have a day job as a motor mechanic and then in the evening he is offering you important credit advice. 

    Cheers

    Yours in Finance 

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

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