Buyers Guide

Buyer’s Guide: Your Path to Property Ownership

Welcome to our Buyer’s Guide! Whether you’re a first-time buyer or adding to your property portfolio, this guide is here to help you understand the ins and outs of buying real estate. With clear steps, tips, and insights, you’ll be well-equipped to make informed and confident decisions.

1. Define Your Budget and Financial Readiness

Setting a realistic budget is your first step. Consider your current financial position, including savings, debts, and ongoing expenses. It’s also essential to factor in costs beyond the property price, such as stamp duty, legal fees, and moving expenses.

What to consider:

  • Deposit requirements
  • Eligibility for grants (such as the First Home Owner Grant)
  • Pre-approval for a home loan

2. Get Loan Pre-Approval

A loan pre-approval shows sellers that you’re a serious buyer. It also gives you a clear idea of your borrowing limit and can speed up the buying process. Start by consulting a mortgage broker or bank to explore your loan options.

Documents you may need for pre-approval:

  • Proof of income
  • Details of assets and liabilities
  • Identification and residency documents

3. Research the Market and Property Options

Take time to explore different areas and property types to find one that suits your lifestyle and goals. Compare property prices, amenities, and future growth potential in various suburbs.

Key factors to consider:

  • Property type (apartment, house, townhouse)
  • Location and proximity to schools, shops, and public transport
  • Potential for future development or growth in the area

4. Attend Inspections and Evaluate Properties

Property inspections allow you to assess a property’s condition and determine if it meets your needs. Look beyond surface details and consider engaging a building inspector for a professional opinion on structural aspects, particularly for older homes.

What to look for during inspections:

  • General condition of the property
  • Layout and functionality of space
  • Age and condition of key features (roof, plumbing, electricals)

5. Make an Offer

Once you’ve found the right property, it’s time to make an offer. In WA, an offer becomes a binding sales agreement on acceptance, with no cooling-off period. Be prepared to negotiate on price and terms, as this can impact your final deal.

Offer process tips:

  • Start with a fair, reasonable price
  • Consider adding terms like flexible settlement if beneficial to the seller
  • Be prepared for counteroffers or competitive bidding
  • For government sales, deceased estates, or administrator sales, you might not be able to add building and pest reports – in these cases, you can usually do your due diligence before placing an offer
  • Once an offer is accepted, it becomes the Contract of Sale, outlining all terms, including settlement date, deposit amount, and conditions
  • Arrange a building and pest inspection to ensure there are no hidden issues. This step helps identify costly repairs or structural concerns and can be a bargaining point if problems are found

6. Complete the Settlement Process

Settlement is the final step where ownership is officially transferred. Your solicitor or conveyancer will handle most of this process, coordinating with your lender and the seller’s representative.

What to expect:

  • Final property inspection (to ensure condition hasn’t changed)
  • Signing of documents and transfer of title
  • Payment of final purchase price and other costs

7. Move In and Celebrate!

Congratulations, you’re now a property owner! Once settlement is complete, you’re free to move in or start any renovations. This is the beginning of an exciting new chapter and a significant financial milestone.

Tips for a Smooth Buying Experience

  • In a multi-offer situation, you may not have the chance to expect a counteroffer. The seller can only counter to one buyer at a time, and most buyers will make their best offer first.
  • It’s not always about the money. Keeping your offer simple and reasonably free of conditions has value.
  • Don’t expect ‘automatic’ inclusions. If it’s not written into the offer, it doesn’t exist. (Note: The seller is required to disclose all known material facts.)
  • Interstate buyers note: In WA, an offer becomes binding on both buyer and seller upon notification of acceptance. Gazumping (accepting a higher offer after already agreeing to accept someone else’s offer) is illegal in WA.
  • The Joint Form of General Conditions is the standard sales agreement for residential property in WA. It is included as part of your offer. Any variation or exclusion from the Joint Form must be written into the offer document. It provides clarity on the buyer's and seller's obligations under any sales agreement.

Buying property can feel complex, but with the right knowledge and support, it’s absolutely achievable. For more assistance, get in touch with our team – we’re here to help you through every step of the buying process. Happy house hunting!