Buying a house in Perth. Where to begin?

With a house buying in Perth on the cards, there is a tricky process ahead of you. There can be a number of nerve-racking parts of the house buying process.

Real estate contracts can be confusing and difficult to understand, which is why having a buyers agent looking out for your best interests will give you peace of mind.

Property Buyers Services is a buyer’s agent in Perth who will help you navigate and follow your property transaction throughout its full course. Our buyers service includes introducing you to off-market opportunities which will ensure a much wider choice of properties available to you.

Whether you choose to go solo or you decide to appoint your own buyer’s agent, you’ll need to go through five main stages when purchasing property in Perth, Western Australia:

Search – Checklist
  • Where in Perth do you want to buy?
  • What type of property do you want to buy?
  • How can you find properties that match your criteria?
  • Prioritize your requirements.
  • Be prepared to compromise.
  • Don’t allow your heart to rule your head.
  • Search the newspapers and internet. If you are out of town or too busy, appoint a Perth buying representative to do the leg work, short listing suitable properties.
  • View a property at least twice, at different times of the day, before expressing interest.
  • Check out the locality including roads, public transport, schools, shops and parks. Your buying representative in Perth will do the local authority search on your behalf, including development potential, re-zoning and other projects in the locality that can significantly impact on its value over time.
  • Ensure the property is not over-priced.
  • Compare the prices paid for other properties in the area where you are looking.
  • Get unbiased advice on what price to really pay.
  • When buying a property in Perth, research is your best friend.
  • For an investment property in Perth, buy where demand consistently outpaces supply.
  • Don’t wait for the perfect market conditions – they will never appear and you’ll miss out on significant capital growth.
  • Eliminate the stress and frustration of being shown too many inappropriate properties by Perth selling agents that don’t listen to the buyers’ needs. Consider talking to a buying representative in Perth to see how you can benefit from their services.
Finance – Checklist
  • How much can you borrow?
  • Beware that you may have to pay Lenders Mortgage Insurance if your loan amount is more than 80% of the value of your property.
  • Make sure you follow these steps:

    1. Calculate your deposit
    2. Calculate your borrowing capacity
    3. Select the right loan for your needs
    4. Get pre-approval
  • Shop around for the best possible home loan you can afford, both in the amount of deposit required and in ongoing monthly payments.
  • Look at the fine print for monthly service fees and other charges.
  • There are some hidden costs in buying, such as stamp duty, mortgage insurance, settlement agent fees, building inspection etc.
Negotiations – Main Issues
  • Why is the vendor selling?
  • Is he desperate to sell?
  • How much is the property overvalued by the Perth selling agent or the sellers themselves?
  • Don’t be afraid to negotiate aggressively.
  • How low, price-wise, can you go without being dismissed as a time waster?
  • What are the costs of essential repairs and improvements that you would like to make?
  • Use these costs as bargaining tools before making an offer.
  • Make a list of these extra costs and present it to the selling agent.
  • Make sure you know what’s included in the asking price, and negotiate on anything extra you would like to be included at an early stage.
  • Get unbiased advice on what price to really pay before you make an offer.
Contract of Sales
  • In Western Australia all buyers purchase a property via a method known as ‘Offer and Acceptance’.
  • Beware: If you put an offer on a house in Perth and it’s accepted then you’re committed to complete the purchase unless the seller doesn’t meet a condition.
  • The Offer forms a part of the Contract.
  • Once the offer is accepted, it is a legally binding document, i.e. it becomes a Contract.
  • If the original offer is counter-offered, the original offer is no longer legally binding.
  • The counter-offer leaves the seller at risk of losing the buyer.
  • If your offer on a property in Perth is counter-offered, you should take your time and reconsider your position.
  • If you are buying privately, you are usually required to pay a deposit.
  • This can be anywhere between $2,000 and 10% of the purchase price.
  • If you are buying at an auction, you are required to pay a deposit immediately.
  • This is usually 10% of the purchase price.
  • The deposit will be placed in a trust account until all conditions have been met.
  • All fixtures & fittings are included as part of the sale (these are no longer free from stamp duty).
  • You need to declare the amount of finance and the financial institution.
  • It is very important to have the finance pre-approval arranged prior to this stage.
  • Specify the time frame in which the finance approval must be obtained.
  • This is usually 21 days or longer.
  • Do not try to make it any shorter.
  • Any special conditions are to be included as part of the offer.
  • The real estate agent in Perth will act as the ‘go-between’ until you and the seller reach a happy medium.
  • If you cannot agree on a price, you can withdraw your offer.
  • Make sure you do it in writing. Special conditions can include:

    • Subject to the sale of another property.
    • Subject to approval by the Foreign Investment Review Board (if you are an overseas buyer).
  • If you don’t have a visa, you can only buy off-the-plan property. There are some risks attached to buying off-the-plan property in Perth.
  • Offers are usually subject to satisfactory termite inspection.
  • For an older home in Perth, make your offer subject to a satisfactory structural adequacy inspection.
  • Subject to all electrical and plumbing items being in good working order prior to settlement.
  • Subject to all council and regulatory approvals on all extensions and renovations.
Negotiations – Main Issues
  • Why is the vendor selling?
  • Is he desperate to sell?
  • How much is the property overvalued by the Perth selling agent or the sellers themselves?
  • Don’t be afraid to negotiate aggressively.
  • How low, price-wise, can you go without being dismissed as a time waster?
  • What are the costs of essential repairs and improvements that you would like to make?
  • Use these costs as bargaining tools before making an offer.
  • Make a list of these extra costs and present it to the selling agent.
  • Make sure you know what’s included in the asking price, and negotiate on anything extra you would like to be included at an early stage.
  • Get unbiased advice on what price to really pay before you make an offer.

With a Perth property buyer’s agent by your side, you’ll never have to worry about signing on the dotted line without truly understanding what this means. Property Buyers Services will fill in the gaps, give you an ultimate control and a complete transparency.

There will be no upfront fee for launching your Perth property search.

Contact us for more information

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