What to do when you have found a home?
Well after all the excitement of house hunting, you may have just found your dream home. My clients often ask me “what should I do now?”
After my clients have found their dream home, I generally advise them that it is really important for them to carry out pre-purchase inspections. This allows you to ensure that the property you are buying does not have any serious issues. You might like to give some thought to arranging a pest and building inspection and a strata report (if applicable) by a professional who is trained to assess the condition of the property. This will give you peace of mind that the property you are buying is the right one for you!
Once you have found the right property for you, its time to put an offer in. This can be a daunting time. When you decide to make an offer, you should request that the agent give you a copy of the Contract for Sale. You should then pass this contract onto your Solicitor for them to review with you. Your Solicitor will be able to assist you to identify any terms in the contract that might not be in your favour and negotiate with the vendor’s Solicitor to vary these terms. If you wish to book an appointment with one of our solicitors to review the contract with you, visit the link below: –
Once you have reviewed the contract with your Solicitor, and are satisfied with its terms, it’s time to actually ‘make the offer’. This offer can be either verbal or written. Once your offer is accepted, the agent will arrange to exchange the contracts. Many of my clients often ask me, “what is exchange?” An agent will have two copies of the contract, one for the purchaser and one for the vendor. Each party signs their copy of the contract before they are swapped or “exchanged” by sending them to each other or their solicitors. When exchange occurs, the purchaser will usually be required to pay a deposit which is usually 0.25% of the purchase price.
After exchange, there will generally be a cooling off period of 5 to 10 days. A cooling off period is a period after the contract is made which gives the purchaser the chance to consider if they really want to purchase the contract. In circumstances where it may not have already been completed, it allows the purchaser to obtain any pre-purchase inspections that they may require such as pest and building reports. It also allows the purchaser to liaise with their bank and obtain loan approval if this hasn’t already been done.
At the end of the cooling off period, the purchaser will usually be required to pay the remainder of the deposit. This is usually 10% unless otherwise agreed between the purchaser and vendor. After exchange, the agent will generally hold the deposit in their trust account until settlement.
If you have further questions about what to do when you have found your dream home, please do not hesitate to contact our office on 1300 444 529 and one of our solicitor’s will be happy to assist you.