What is The Process For Buying A New Home NSW
If buying a house in NSW has been your dream then count yourself lucky because although buying a house can be a daunting task, it is also one of the most important long term decisions that you can make for happiness in your life. It is a big commitment and that is why this guide is there to help you settle in your dream home. Read on and find out.
Buying a home in NSW can be done in two ways:-
To be eligible to buy a property through an auction you have to first register and then be the highest bidder. However, it is also good to involve your solicitor or conveyancer to help you out before bidding in case there are unfair terms. You need to evaluate the strata reports, pest reports, and other relevant reports to ensure you are well set before the auction. Ensure you are well equipped financially with pre-approvals when attending the auction because you might be lucky enough to win the bid.
Purchasing a home through a private Treaty involves a direct seller. They normally quote prices but you can negotiate for a more favorable price. Once you have agreed, then you will activate the contract by signing and making a deposit of around 10%. Normally, here in NSW, there is usually a cooling period of approximately 5 days.
What you need to know when buying a house.
You need to organize your finances before you decide to purchase a home. This involves speaking to your financial advisor to give you some lead on how you will handle the task before you. It is also good to speak to your financial institutions and see how much you can borrow depending on your payment capabilities. The cost of buying a house depends on the amount of deposit that you will make. There are stamp duty and other conveyancing fees and legal. Therefore, identify the total cost involved so that it can give you a good platform to prepare your finances.
Inspection of the property
Once you are well equipped financially you need to ensure you find time to inspect the property, irrespective of whether it was found in the newspaper or online. You need to consider the precise location because NSW is a big state with lots of regions so you should be very particular when it comes to location. Determine the kind of property also in terms of the design of the property. It could be a townhouse or an apartment. You need to consider such options. Inspection can be tedious if you decide to do it alone. So you should involve a NSW real estate agent or other professions to help you in obtaining building inspections, home warranty reports, community title inspection reports, and structural engineer reports. This helps you to identify if there are any issues with the property before you purchase.
Submit your offer
After doing the necessary research and identifying a suitable property and you are about to close the deal by placing your offer. Some people might perceive it as a tedious task but it is pretty simple. You need to request the agent to give you a copy of the contract that permits the property to be sold. This is one of the most important legal documents which you will be required to give it to your solicitor to make a review. This ensures that the property has no pending cases that may hinder it from being sold. Once your solicitor gives you a go-ahead that the contract for sale is in order then you are free to submit your order.
In NSW you can submit it via a written document or verbal, though it is better to put things in writing to make it more legitimate. During such a time, some agents might permit you to leave a deposit but it is not a guarantee that the property will be sold to you. If they get any other potential buyers during this stage then your money will be refunded or a chance to make a higher offer.
Processing of legal documents.
Processing legal documents is very important once your offer has been accepted. This is the time you will require handy support from your solicitor or conveyancer who has been certified by the legal authorities and they have been licensed by the NSW fair trading. They should also have indemnity insurance that protects you in case any mistake occurs during the process. Irrespective of whether you engage a solicitor or a conveyancer they should be able to arrange the change of title, assets and review the sales contract, make arrangements on payments and represent you during the settlement process.
Negotiation and placing deposits
The solicitor will represent you during this process because here in NSW the purchase process is determined by the exchange of contracts where you and seller will receive a copy. You are expected to sign before it is exchanged. At this point, you should be ready to pay at least a 10% deposit of the total price. In case a new agreement arises as a result of negotiation then it should be reflected on the contract.
Additionally, there is a 5 -day cooling period which allows either party to withdraw. However, if you choose to withdraw through a written notice then you will have to pay the seller 0.25%of the total price agreed for the property.
If you choose to proceed with the process you will generally have 4-8 weeks to finalize on payment and prepare other pending legal documents unless other terms are agreed on such as a delayed or speed settlement On the settlement day, your solicitor and the legal representative will convene to make an official exchange of cheques and transfer of property.
It is during this time that you should count yourself a new owner of the property and you can prepare to settle in at any time after that. This process is not that complicated and after reading this guide at least you have seen that the home buying process here in NSW is easy and convenient.