Buying a house might feel daunting, but it doesn’t need to be with Bennett Cooney Mackman Real Estate & Development. Here, we take you through the process step by step and provide you helpful tips along the way…
Ready, Set, Buy!
Following these five steps will help you through this process which we understand can be daunting, regardless of whether it is your first purchase or one of many.
Step 1 - Determine your borrowing capacity
Before you start searching for your new home, you’ll need to organise finance so you know exactly which homes are worth inspecting and which are simply unaffordable (because as nice as it is to inspect majestic palaces, it's heartbreaking when you realise they are out of reach!)
As at January 2017, the average price of a home in Sydney was recorded as exceeding $850,000. Naturally, most people don’t have this kind of money lying around. So, before you start searching for your new home, it would be wise to get in touch with a mortgage broker, bank or various other lending institute to ascertain how much you are eligible to borrow and what you can afford to pay.
Step 2 - Search for and inspect properties
Now that you know your budget, the fun part begins - searching for your dream home!
Some key considerations at this stage include:
Once you have an idea of the kind of home you are looking for and the area you want to live in, give the Bennett Cooney Mackman team a call, send us an email or register your details via this website - we are here to help.
It’s really crucial before buying a house that you inspect it (two or three times, if necessary). This allows you to rule out any serious issues, ensure the property meets your requirements and that you can see yourself living in it and loving it.
Another option available to you is to organise for a building inspection report which is a building inspection completed by a professional who is trained to assess the condition of the property.
So you’ve done your research, looked through dozens of properties and you’ve found the one - now it's almost time to make your offer!
When you decide to place an offer on a property, you need to request the agent to give you a copy of the Contract for Sale pertaining to your property. This contract is a legal document which formally identifies the property being sold and will include a number of important documents pertaining to the property. You should have your conveyancer or solicitor review the document to make sure there are no serious issues or important items missing which would prevent you from purchasing the property.
Once you feel comfortable that the contract is in order, go ahead and submit that offer! Either written or verbal in acceptable in New South Wales.
Once your conveyancer or solicitor advises you that the contract of sale is in order, it’s time to actually ‘make the offer’. If the property is hotly contested, the agent or their vendor may request that a 0.25% deposit be paid once the offer is accepted. It is important to note that this deposit is non-refundable, should the sale not proceed.
Step 4 - Organise legalities
Great news - your offer has been accepted! You are one step closer to buying your dream home!
This fourth step is quite a formal process as legal documents need to be exchanged and signed in order to complete a property purchase. It is absolutely recommended that you engage a conveyancer or a solicitor who specialises in property law. When selecting a conveyancer, ensure they are licensed with NSW Fair Trading - this is a requirement by law. In addition to this, both conveyancers and solicitors should hold professional indemnity insurance which will protect you should any mistakes be made during the process.
Whether you engage a conveyancer or solicitor when you are buying a house in NSW, they should perform the following key tasks:
We here, at Bennett Cooney Mackman, deal with conveyancers on a daily basis and can, if need be, point you in the right direction.
Step 5 - Negotiate contracts and place a deposit
Now that you have engaged a conveyancer or a solicitor who specialises in property law - these professionals will act on your behalf during the contract negotiation process.
When buying a house in NSW, the exchange of contracts is what legally completes the purchase process. Both purhaser (you) and the vendor will receive a copy of theContract for Sale which you will need to sign before they can be exchanged. Your conveyancer or solicitor will organise this. It is at this point you will also be required to pay a deposit for the property. The deposit is usually 10% of the accepted purchase price, however both parties can agree on a different amount which should be reflected in the contract.
A five day cooling off period after exchange is standard when buying a house in NSW. This period allows either party 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.
After contracts have been exchanged, you will then have approximately 6 weeks (this can vary from 4 - 8 weeks) until settlement. This period is typically used to finalise your payment on the property and for your conveyancer/solicitor to prepare legal documents in preparation for settlement day.
Your conveyancer/solicitor will meet with the vendor’s legal representative and both parties bank representatives on settlement day to exchange cheques and officially transfer the property over to you. And once this is done…. the property legally belongs to you.
The business of Bennett Western Sydney Pty Limited (trading as Bennett Cooney Mackman Real Estate & Development) is independently owned and operated by Matthew Bennett, Nicole Spies Cooney and Anthony Mackman.
We have no association with Bennett Property (NSW) Pty Ltd, JP Bennetts Real Estate, Bennett and Bennett Real Estate, Bennett Construction, Bennett Family Real Estate, Bennett Realty or any other business with Bennett in it's company name or branding.