protectionpack HOME BUYERS · houses - and there‘s one out there that‘s the right house at the...
Transcript of protectionpack HOME BUYERS · houses - and there‘s one out there that‘s the right house at the...
HOME BUYERS Get the extra edge with our Top Tips prepared by leading property professionals
inside• 13CommonMistakesHomeBuyers
Make–andhowtoavoidthem
• Howmuchisthatpropertyworth?HowdoIknowwhatpricetooffer?
• WhatshouldIwatchoutforifI’mbuyinganapartment?
• Thehomebuyer’ssecretweapon-Havinganagentonyourside
protectionpack
ConsumerReport
Brought to y
ou by:
Metropole Property
Strategists
Buying your next home, especially if it’s
your first home can be a daunting task.
It’s exciting but full of complexities
Whileit’slikelytobethelargestfinancial
transactionyouwillevermake,we’vefound
thatmanyhomebuyersarepoorlyprepared
toensuretheymakeagoodpurchase
decision.
Andit’snottheirfault.Thesystemisstacked
againstthem,withmuchofthepowerbeing
onthesideoftheseller.
InthisHomeBuyer’sProtectionGuide,we’d
liketohelpleveltheplayingfieldforyou.
Firstlyhereare13CommonMistakesmade
byHomeBuyers–onesthatyoushould
avoid.
1| Notdoingproperresearchand
preparation
Understandyourfamily‘sfinancesandneeds.
Thewisehomebuyerwillanalyseassets,
decipherdebtsandgetpre-approvedfor
financebeforeplungingintothehousehunt.
Gettoknowtheneighborhood-you‘renot
justbuyingahouse;you‘realsobuyinga
location.It’simportanttofindoutaboutthe
qualityofschools,thecrimelevel,transport
andpossiblyupcomingzoningissues.Notall
partsofeachsuburbareidealspotstolive.
2| Choosingthewrongmortgage
Toputyouinthebestnegotiating
position,it’scriticaltohaveyourloanpre-
approved(notjustpre-qualified)beforegoing
househunting.
13 Common Mistakes Home Buyers Make & how to avoid them
1 HomeBuyersProtectionPack
Findouthowmuchyoucanafford–butyou
can’tsimplygotoabank‘sInternetsite,use
thecalculatorstoseehowmuchyoucan
borrowandassumeyou’llgetaloan.There‘s
abigdifferencebetweenwhatthebanks
indicatetheycanlendyouandwhatthey
actuallywill.
It’simportanttopickyourfinancepackage
carefully.Don’tjustgotoonebank;instead
useanindependentfinancebrokerwhohas
accesstoarangeoflendersandfinance
products.
3| Beinginfluencedby“TheMarket”
Don’tbeinfluencedby“themarket”
morethanbyyourownneeds.
Surethepropertymarketmovesincycles
andtherearetimeswhentheysuitbuyers
andtherearesellers‘marketswhenprices
arebooming.However,waitingforthe“right
time”orpricestogodownisgamblingwith
yourfamily’sfuture.
Attimesthemixedmessagesinthemedia
mayconfuseyouandyou’llbetemptedto
putoffthedecisiontobuy.Ifyouknowyour
budget,haveyourfinanceorganisedand
thinkaboutyourcurrentandfutureneeds,
thenyoushouldrarelyletshorttermmarket
conditionsinfluencewhatwillbealongterm
lifestyledecision.
4| Goingbeyondyourbudget
Everyhomebuyerknowsthe
feeling-you‘relookingforahomethatfits
yourbudget,butthatmuchmoreexpensive
propertyjustlooksthatmuchmore
appealing.Howeverbuyingahomethat‘sway
outofyourpricerangecouldwellderailyour
financesinthefuture.
It’shumannatureforustowantalittlemore
thanwecanafford,andthere‘salwaysareal
estateagentwho’lltalkyoutothenextlevel.
Butdon’tbetempted-thebankhasusually
offeredyouaborrowinglimitforgood
reasonsbasedonyourabilitytorepaythe
loan.Spendingmorethanyoucansensibly
affordleavesyouexposedtopotential
financialshocks,includingrisesininterest
rates.Youmustalsoallowforchangesin
yourfuturecircumstances.
HomeBuyersProtectionPack 2
5| Falling in love
Ifyouthinkahouseisideal,don‘t
lettheseller‘sagentsknow.Agentsaregood
atreadingemotionsandnegotiatingthelast
centoutofprospectivepurchasers.
Awisehomebuyerknowsthere‘slotsof
houses-andthere‘soneouttherethat‘sthe
righthouseattherightprice.Ifyoucan‘t
affordit,moveonandkeeplooking.
6| It’s not all about price
Weallknowyoumakeyourmoneyin
propertywhenyoubuy,butthatdoesn’tmean
youmustbuycheaply.Youmakeyourmoney
bybuyingtherightpropertynotacheap
property.
Priceiswhatyoupay,valueiswhatyouget.
Thismeansyoudon’tmakeyourbuying
decisionpurelyonprice.Youcanalwaysbuy
cheappropertiesinsecondarylocationsor
onmainroads,butyou’llbestuckwitha
secondaryproperty–notagoodidea.
However,whenyou’vefoundtheright
property–it’simportanttomakeaproper
offer.Onethatsecuresyourhome,butthat
doesnotoverpay.
Don‘tbaseyourofferontheseller‘s
askingprice.Instead,getacomparative
marketanalysisfromyourbuyers’agent.
Thisanalysiswillrevealrecentasking
andsalespricesofsimilarhomesinthe
neighbourhood.Withthistypeofknowledge,
awisehomebuyercanmakeanofferthatis
appropriate.
7| Not having the right protection
clauses in the contract of sale
Don’tsignanythinguntilyouaresureyour
interestsareprotected.
Whilethestandardcontracttopurchasea
propertywillgiveyoua“3daycoolingoff
period”smartpurchasersrequestadditional
clausestoprotecttheirinterests.
Don’tbefooledbyanagentwhosaysyoucan
alwaysaskforchangesoranextensionlater.
That’snotthewayitworks.Theonlyway
togetchangestoacontractonceit’sbeen
signedistoendtheexistingcontractandre-
negotiateanewone.Andthesellerdoesn’t
havetoagreetoyourrequests.
3 HomeBuyersProtectionPack
HomeBuyersProtectionPack 4
8| Underestimating the full costs of
buying a home
Manyhomebuyersfailtobudgetforthefull
costsassociatedwithbuyingahouse.Firstly
there’stheacquisitioncosts.Thingslike
stampduties,rates,valuationcosts,loan
applicationfeesandmortgageinsurance.
Apartfrombudgetingformovingcosts,be
preparedfortheunexpectedwhenyoumove
intoyournewhome.It’sfunnyhowthings
thathavebeenworkingforyearsseemto
breakdown,asiftheyknewtherewasanew
owner.Setasideabudgetforthoseirritating
andsometimescostlybreakdowns.
Then…don’tunderestimatetheongoingcosts
ofowningyourproperty.Owningcancost
muchmorethanrentingwithexpenseslike
rates,insuranceandmaintenance.
9| The “Fed Up” Purchase
You’vebeenlookingforafewmonths
buthaven’tfoundyourdreamhome.The
agentsaremisleadingyou;youmayhave
beenoutbidbysomeonewhohaddeeper
pocketsthanyou.You’reFedUp!
Onebigmistakehomebuyersmakeisto
buyapropertyindesperation.Theybuy
somethingreasonableratherthansomething
thatreallysuitstheirneedsbecausethey’re
sickoftheemotionalrollercoasterofhome
buying.
Thisisadecisionyoumaylivetoregretfora
longtime.
Ratherthanbuyingoutoffrustration,stop
lookingforawhile,orbetterstillgetabuyers
agentonyoursidetosaveyoutime,tolook
innooksandcranniesyouwouldn’thave
You can always buy cheap properties in secondary locations or on main roads, but you’ll be stuck with a secondary property – not a good idea.
i
thoughtofandtofindthosesilentsalesfor
you–theoffmarketproperties.
Formoreinformationonbuyers’agents,
readthesection“Thehomebuyers’secret
weapon“.
10| Not organising a professional
building inspection
It’simportanttoengageacompetentand
independent(notonerecommendedbythe
sellingagent)professionaltocheckyour
potentialnewhome.
Remember…theseinspectorsaretrained
tofindfaults,sodon’tfreakoutwhenthey
producealonglist.Lookoutformajorfaults
butdon’tletminorfaultsthatareeasily
repairedtroubleyoutoomuch.
Ifyou’renotsurehowtointerpretthereport,
haveachatwiththebuildinginspector&ask
questionslike-wouldyoubuythisproperty?
11| Misunderstanding the real
estate agent‘s role
Realestateagentsarefriendlypeopleand
inthecourseofshoppingforahouse,you
willspendalotoftimewithvariousagents.
However,thewisehomebuyerunderstands
who‘sworkingforwhom.Unlessyouhave
engagedanexclusivebuyers’agent,thenthe
agentsareworkingforthesellers.
Don’tbemistaken–asellingagentcan’t
workintheinterestsofboththebuyerand
theseller.Infactthey’relegallyandmorally
obligedtoworkfortheirclient-theseller.
Howeverwisehomebuyersknowhowto
leveltheplayingfieldbyengagingabuyers’
agenttorepresenttheirinterests.Formore
informationonbuyers’agents,readthe
section“Thehomebuyers‘secretweapon“.
12| Going Solo
Thesellershaveanagent
5 HomeBuyersProtectionPack
Don’t be mistaken – a selling agent can’t work in the interests of both the buyer and the seller!
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protectingthem,lookingaftertheirinterests
andadvisingthem,butmosthomebuyer’sgo
solo.
Sureyou’vereadsomearticlesanddoneyour
researchontheInternet,butthisislikely
tobeyourlargestpurchaseever.Andthose
emotionswillcloudsomeofyourdecisions.
Youwouldn’tgotocourtwithoutasolicitoron
yourside–wouldyou?
Youprobablyhaveagoodheadonyour
shouldersandmayevenhaveagoodworking
knowledgeofthehomebuyingprocess.
Whatyouprobablydon’thave,however,is
perspective.
If,howandwhenyoubuyahomeareall
decisionsthatwillhavemajorconsequences.
That’swhyit’simportanttohavethesame
protectiononyoursidethattheseller
has.That’swhyit’scriticaltoengagea
professionalbuyers’agenttorepresentyour
interests.
Formoreinformationonbuyers’agents,
readthesection“Thehomebuyers’secret
weapon“.
13| Thinking this list is exhaustive
It‘snot.Therearemanyother
issuestoconsider.But,hopefully,thiswill
helpyouavoidafewcommonmistakesas
youcontemplatebuyingyournexthome.
Ifyouwantallyourquestionsanswered
considerbuyingagreatbook“The Australian
Guide to Buying and Selling Your Home”–
byMichael&PamelaYardney–availableat
www.Buying&SellingYourHome.com.auor
engagingMetropole Property Strategiststo
helpleveltheplayingfieldandactingasyour
buyers’agents.
MetropoleProperty Strategists
Let us help you find & negotiate for the purchase of your next home.
It’s a great feeling having an agent on your side, working for you and not the seller.
metropole.com.auMelbourne, Sydney & Brisbane
1300 METROPOLE
G
HomeBuyersProtectionPack 6
Whenyou’relookingtobuyyournexthome,
orevenifyou’reconsideringsellingyour
property,aquestionyouwouldbeasking
yourselfis“How much is this property really
worth?”
Whodoyouasktofindout?TheSelling
Agent?AValuer?ABuyers‘Agent?Maybe
theBank?Ordoyoubuyoneofthoseonline
reports?
Itprobablywon’tcomeasasurprisethat
theyarealllikelytocomeupwithdifferent
“values”.
Youmayhaveheardoftheconceptof“fair
marketvalue”inproperty,whichisdefined
as“thepriceabuyerwillpayandaseller
willacceptgiventhatneitherthebuyer
northesellerisunderpressuretoclose
thedeal”.Pressure,ormotivationcomes
fromlifechangessuchasdivorce,asudden
jobtransfer,difficultymeetingmortgage
repaymentsoradeathinthefamilyand
thesethingscompeleitherthebuyeror
sellertoactquickly.
Nowwhenwe’retalkingfairmarketvalue,
let’sgetonethingclear–itmaynotalways
be“fair”toyou.
How much is that property worth? How do I know what price to offer?
7 HomeBuyersProtectionPack
Itmaynotbewhatyoucall“equitable”
becausefairmarketvalueisimpartial,it
takesnosidesanditdoesn’tcareaboutwhat
youneedorwhatyouwant.Asabuyeryou
wanttobuythepropertyatthebestprice
possibleandasaselleryouwanttoachieve
thehighestpriceforyourhome.
So back to my original question – who
do you ask for advice?
The real estate agent
Ifyouaskthesellingagentwhattheproperty
you’reconsideringbuyingisworth,heis
obligedtoworkforhisclient-theseller.
Whilehecangiveyoudetailsofcomparable
salesandanindicationofinterestinthe
propertyfromotherpotentialbuyers,the
sellingagentshouldbetryingtomaximize
thesalepriceforhisvendor.
A valuer
Youcouldpay$400orsoandgetan
independentprofessionalvaluation,butyou’d
probablybedisappointed.
I’vefoundthataformalvaluationisoflimited
benefitinsettingarealisticmarketpriceto
purchaseapropertyandwillgenerallybelow
whenchoosingtheaskingpricewhenselling
yourhome.It’sjustanotherfiguretoaddto
themixofpossibleprices.
Callmecynical,butinthecurrentmarket
andwiththeirprofessionalindemnity
insurancegettingmoreexpensive,combined
withthelittletheyarepaidtoconducta
valuation,Ihavefoundvaluerscomedownon
theconservativeside.
The Bank
Whenyouapplyforaloanforyournew
propertythebankwilldetermineit’svalue,
butagainthismaynotaccuratelyreflectthe
property’smarketprice.
Bankstendtovaluepropertiesatafigure
thatwillreflectwhattheycanreasonably
expecttorecoupiftheytakepossessionand
onsellyourpropertyifyoudefaultonyour
loanrepayments.Theyeitherusetheirown
stafforanoutsidefirmofvaluers,butthese
areoftendrivenbyvaluationswithouteven
lookinginsidetheproperty.
An online report from one of the property
data providers
Anumberofpropertydataandresearch
companiesprovidereportsyoucanbuy
onlinetoestimatethevalueofaproperty.
What’sthecatch?I’vefoundthattheycanbe
HomeBuyersProtectionPack 8
10–20%outontherealpriceofaproperty.
Theycanbewrongeitherway-estimating
thepropertyisworthconsiderablymoreor
lessthanitsvalue.
Thinkaboutit-theydon’tknowifthe
propertyhashadanairconditionerinstalled
orwhetherithasthreadbarecarpetsor
recentlypolishedfloorboards.Theydon’t
knowwhetherthepropertyhasbeenrecently
renovatedorisinoriginalcondition.
Inmyview,Iwouldn’tbotherwiththistypeof
report.
A Buyers’ Agent
Abuyers’agentcouldbeagoodsourceof
independentandunbiasedpropertyprice
advice.
Abuyers’agentisalicensedestateagent,
buttheoppositetoasellingagent,because
theyworkforandarepaidbythebuyer.
Ifyouchooseonethatworksinthe
geographicpatchyouareconsidering,they
shouldhaveanintimateknowledgeofthe
propertymarket,whatissellingandwhat
isn’tandthepricesthatpropertiesareselling
for.
Moreandmoreinvestorsandhomeowners
arenowusingbuyers’agentstolevelthe
playingfieldwhentheyarelookingfortheir
nextpropertypurchase.Notonlywillthey
assistwithbackgroundresearchandpricing,
butyoucanusetheirnegotiatingskillsto
helpyouobtainthebestprice.
Tobesuccessfulintoday’sflatproperty
marketsthoroughresearchandastute
propertyselectionisimportant,asisbuying
attherightprice.Investorscan’tcountonthe
risingtideofpropertypricestocoveruptheir
buyingmistakes.
Clearly the value of a property is a
very subjective thing.
Butthiscanbetoyouradvantage.While
agoodsellingagentmayencouragean
emotionalpurchasertooverpayfortheir
dreamhome,anastutebuyermaybeableto
usehisnegotiatingskillstobuyaproperty
belowits“value”fromamotivatedvendor.
Ifyouarenotable,ordon’thavethetimeto
dotherequiredresearchyourself,thenyou
needtogetagoodteamonyoursidetohelp
inyournextpropertypurchaseorsale.
9 HomeBuyersProtectionPack
HomeBuyersProtectionPack 10
5 questions to ask the agent before you
make your offer:
1. How did the vendor come to the asking
price for their home?Wasitfromthe
agent’ssuggestionorbecausethat’show
muchtheyneedtobuytheirnextdream
home?Somesellersareunrealisticand
unlikelytocomedownfromtheirasking
priceiftheyhavetogetacertainamount
foraparticularreason.
2. Have there been any other offers
made?Thisletsyouknowifyouhave
anycompetitionandhowseriousthe
vendorisaboutsellingtheirhomefora
reasonableprice.
3. How long has the home been on the
market?Ifit’sjustbeenputupforsale,
thesellermaynotbeanxioustoaccept
thefirstoffer.Ifthehomehasbeenonthe
marketforseveralmonthsit’smorelikely
thesellerwouldbereadytoacceptyour
offer.
4. Why is the vendor selling? Arethey
goingthroughadivorce?Dotheyhave
tomoveinterstateurgently?Havethey
alreadyboughtanotherhomethatwould
putthemunderpressuretoselltheir
currenthome?Thiswillletyouknowhow
motivatedtheselleris.
5. Has the asking price been reduced
during the time the property has been on
the market? Thiswilltellyouwhetherthe
sellerisreallykeentooffloadtheirhome
andalsoletyouknowthatyoumighthave
amotivatedselleronyourhandsand
perhapsgreaterbargainingpower.
GoodLuckwithyournegotiating!
With our changing lifestyles, more
and more Australians are swapping
their backyards for balconies and the
convenience of apartment living.
Ifyou’relookingforgoodvalueinyour
apartment,buyinabuildingthathas
somethinguniqueaboutit.Whetherthe
buildingisabitretroormoremodernwith
excellentfeatures,lookforsomethingthat’s
notblandandboring.
Makesureyourapartmentcomeswith
anaccessiblecarspace.Manyolder
apartments,particularlyinthecityand
innersuburbs,weren’tbuiltwithcar
accommodation,forcingresidentstopark
outonthestreet.Goodcaraccommodation
canaddsignificantlytotheresalevalueofan
apartment.
Lookforabuildingthathasahighproportion
ofowneroccupiersratherthantenants.
Ownerstendtolookafterthebuildingbetter
andaremoreinclinedtokeeptheirpartying
torespectablenoiselevels.Andlookfor
amixofunitsizestocreateadiversityof
What should I watch out for if I’m buying an apartment?
11 HomeBuyersProtectionPack
accommodationinthebuilding.
Ifsecurityisabigissueforyou,consider
afirstfloorratherthanthegroundfloor
apartment.Intheolderwalkupbuildings,
firstfloorapartmentsatthefrontofthe
buildingtendtobemorepopularandcarrya
higherpricetag.
Makesuretheapartmenthasgoodsize
livableroomsandauseablebalcony.After
all,asyouhavenobackyard,you’llbe
spendingalotoftimeinyourapartment.
Andmakesureyougetaniceviewfromyour
balcony.Resalevaluesarealwayshigherfor
apartmentswithpleasantviews.Morepeople
enjoylookingatgardensandtreesrather
thanasphalt!
Checkoutthehotwaterservice-willit
meetyourneeds?Willyoubeabletodo
thelaundry,takeashowerandrunthe
dishwasheratthesametime?
AlsocheckouttheannualOwners’
CorporationorBodyCorporatefeesand
makesuretheOwners’Corporationdoesn’t
haveanyongoingdisputeswithneighbours.
Itshouldalsohavea‘sinkingfund’which
ismoneyputasidetopayforfuturemajor
repairsforthebuilding.
Whileyoumightbeenticedbyasparkling
pooloragyminthebasementofthe
building,beawarethatyouwilloftenpay
twiceasmuchinOwners’Corporatefeesto
maintaintheseluxuries.Itwouldprobablybe
cheapertojoinagymdowntheroadthanto
buyintoacomplexwiththeseaddedextras!
HomeBuyersProtectionPack 12
Introduction
Normallybuyingahomeisamajor
experience,filledwithexcitement,
pleasure,pride,stressandfearandwill
consumemuchofyourprecioustime,
moneyandenergy.
Choosingtherightpropertyforyourfamily
comesdowntoknowingwhatyouneed,
knowingwhatyoucanaffordandknowing
exactlywhat‘savailableatthetimeyouare
readytobuy.
Manyhomebuyersfeelthelandscapeis
stackedinfavourofthesellersbecausethat’s
whotheagentsworkfor,whichiswhymore
andmorehomebuyersareturningtobuyers’
agentsforhelp.
Choosingagoodbuyers’agenthelpslevel
theplayingfield,andatMetropoleProperty
Strategistswww.metropole.com.au,we’ve
beenawardedBuyers’AgentoftheYearfour
yearsinarow.
It‘sagreatfeelinghavinganexperienced
agentonyoursidelevellingtheplayingfield,
ratherthanworkingfortheseller.Solet’s
findoutabitmoreaboutthiscuriousbreed
wecallbuyers’agents...
What is a buyers’ agent?
Abuyers‘agentorbuyers‘advocateisthe
oppositeofasellingagent,becausethey
workforandarepaidbythebuyer.Theyare
licensedrealestateagentsandtheirjobis
toworkforyouandprotectyourinterests.
Theyhelpyoubuytherightpropertyforyour
needs,attherightprice,ontherightterms
andwithunbiasedadvice.
Why pay money for something you can do
yourself?
Goodquestion...We‘llgiveyou5reasonswhy
The homebuyers’ secret weapon - Having an agent on your side
13 HomeBuyersProtectionPack
agoodbuyers’agentwillhelpyou;
• Theirresearchsavesyoumoney–they
knowwhat’sreallygoingoninthe
propertymarket–afterallthey’reinitall
day.
• Theirskillsreduceyourstress.Buying
ahomeorinvestmentpropertycanbe
aboutasnerve-rackingasitgets.It‘s
emotional,exhaustingandsometimes
terriblydiscouraging.Abuyers’agent’s
jobistomaketheprocessashasslefree
aspossibleforyou.
• Theirexperiencesavesyoutime-and
thisisoneofyourmostpreciousassets.
Usingabuyers’agentwillgiveyouback
yourweekends.
• Theirindustryknowledgelevelsthe
playingfield–sellingagentsarenotyour
friend,theyrepresenttheirclient-the
seller.
• Theirindustrycontactswidenyour
options–theyhaveaccesstoevery
propertyforsaleandagoodbuyers’
agentevenhasaccesstosilent-“off
marketsales”thatyoumayneverfindout
about.
Why doesn‘t everybody use a buyers’
agent?
Actually,manypeopledo,especially
overseas.InSydney,MelbourneandBrisbane
thenumbersaregrowingandwehaveseen
estimatesthatupto1in5buyersnowusean
advocateorseekindependentprofessional
advice.
Why can‘t a selling agent help me?
Asellingagentmustactinthebestinterests
oftheirclient-theseller.Theydonot,and
shouldnot,workforyou-thebuyer.We
knowsomeagentswouldliketoworkfor
bothsidesandhaveitbothways,butwhen
youthinkaboutit,theycannotpossiblydo
botheffectivelyasthiswouldcreateaclear
conflictofinterest.
How do I find a good buyers’ agent
Notallbuyers’agentsarethesame.Hereare
somequestionsyoucouldaskyourbuyers’
agentbeforeengagingthem:
1. Areyouafullylicensedrealestateagent?
Bewaryofhiringsomeonewhodoesn’t
holdarealestatelicenceandhasn’thad
extensiveexperienceintheproperty
industry.
Therearemanypeopleouttherecalling
themselvesabuyers’agentorbuyers’
advocatewhoarenotlicensedestate
HomeBuyersProtectionPack 14
agents.Don’triskputtingwhatcouldbe
oneofthelargestpurchasesinyourlife
inthehandsofsomebodywhohasn’t
hadtheyearsofexperiencenecessary
tonegotiateonyourbehalf.Don’tbe
temptedtoengagesomebodyjust
becausetheyofferlowerfees.Iftheycan
providegreatserviceandaddrealvalue
fortheirclients,theywouldn’thavetowin
newbusinessbyofferinglowfees.
2. AreyouamemberoftheStateReal
EstateInstitute?
Thisshouldgiveyouthereassurance
thattheyareoperatingtoprofessional
industrystandards.
3. Doyouhavecurrentprofessional
indemnityinsurance?
Ifsomethinggoeswrongwithyour
propertypurchaseyouwillhave
absolutelynorecourseifthisisnotthe
case.
4. Areyouadedicatedbuyers’agent?
Oraretheyjustadivisionofarealestate
agencyoraonemanbandworkingfrom
homeoroutofapostofficebox?They
can’tofferahighstandardofservice
whensearchingandnegotiatingfor
propertiesfortheirclientsunlesstheyare
dedicatedprofessionalsfocusedonthis
process.
5. Doyouspecialiseinthegeographic
location&thepricerangeIamlooking
at?
Ifthebuyers’agentdoesn’thaveastrong
recenttrackrecordofbuyinginthearea
youarelookingatpurchasingin,we
suggestyoudon’tengagetheirservices.
Don’tbeshytoaskthemfortheresultsof
atleastfourrecentpurchasesinthearea
youarelookingatbuyingin.
6. Doesyourbuyers’agenthaveaccessto
“silentsales?”Manypropertiesthatare
Don’t risk putting one of the largest purchases in your life in the hands of someone who hasn’t had the years of experience necessary to negotiate on your behalf.
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15 HomeBuyersProtectionPack
HomeBuyersProtectionPack 16
soldneverhitthepublicmarket.Itis
imperativethatyourbuyers’agenthas
yearsofpersonalrelationshipswithall
oftherealestateagentsintheareayou
arelookingatpurchasingin,soassoon
aspropertiescomeupforsaleyouhave
accesstothesebeforetheygotothe
generalpublic.
What do I pay a buyers’ agent?
Generallybuyers’agentschargea
registrationfeebetween$1,000and$2,000
andwillthenchargeasuccessfeewhen
theyfindtherightpropertyforyouand
successfullynegotiateitspurchaseonyour
behalf.Thiscanbeafixedfee,butitisusually
apercentageofthefinalpropertyprice.
Theirfeesshouldcover:
• Allcommunications&meetingswithyou.
• Referralstoappropriateconsultants
suchasfinance,accountingandlegal
professionalsifnecessary.
• Searchingforasuitableproperty,
includingcommunicationsandmeetings
withagents.
• Useofalltheirresearchdatabases.
• Evaluatingpropertiestoensuretheysuit
yourcriteria.
• Preparationofpropertyreportsto
helpyouevaluatethepropertiesthey
recommendtoyou.
• Communicationswithyourfinance
broker,solicitorandaccountant.
• Arrangingfurtherduediligencechecks
-includingstrata,buildingandpest
inspectionsasrequired(youwillbe
requiredtopayfortheseseparately).
• Executionofstrategiestopurchasethe
propertyforyouatthebestpriceandthen
negotiatingyourpropertypurchase.
• Checkingfinalcontracts.
• Presettlementinspections.
Whether it is your first home or your next
home, finding your dream home will be
much easier with the efficient Metropole
team on your side, working for you.
Normallybuyingahomeisamajor
experience,filledwithexcitement,pleasure,
pride,stressandfearandwillconsume
muchofyourprecioustime,moneyand
energy.
Choosingtherightpropertyforyourfamily
comesdowntoknowingwhatyouneed,
knowingwhatyoucanaffordandknowing
exactlywhat‘savailableatthetimeyouare
readytobuy.
Usingourunique5stephomeacquisition
processwewillhelpyoudecidewhattype
ofpropertybestsuitsyouandwherethat
propertyislocated.
Onceweformulateabuyingbriefwethen
doallthelegwork,gotoalltheinspections,
comparetheprosandconsofeachproperty,
workoutwhatpricetoofferandnegotiatethe
bestpricewiththesellingestateagent.
Partofourjobistoprotectyoubecauseit
istooeasytogetemotionallycaughtupin
theprocessandpaytoomuch,orbecome
frustratedatnotbeingabletofindthe“right“
propertyandendupbuyingthe“wrong“
property.
Why Use Metropole as Your Buyers’ Agent?
17 HomeBuyersProtectionPack
TheteamatMetropolePropertyStrategists
specialiseinhelpinghomebuyers.Wesource
andnegotiatethepurchaseofresidential
propertypurchasesforlocal,interstateand
internationalclients.
Bytheway…Metropolehaswonthecoveted
Buyers’AgentoftheYearawardfor4yearsin
arow.
Wearetheoppositetosellingagentswho
workforandarepaidbytheseller.Weare
licensedrealestateagents(membersofthe
REIV,REINSWandREIQ)andovertheyears
haveboughtmillionsandmillionsofdollars
worthofpropertiesforourclients.
It‘sagreatfeelinghavinganexperienced
agentonyoursidelevellingtheplaying
field,ratherthanworkingfortheseller.You
see...ourbuyers‘agentshavemanyyearsof
experiencesellingresidentialrealestate,so
theyknowallthetricksandtrapsandbring
thisknowledgetoyou.
6 reasons why you should use a
Metropole buyers agent to help you buy
your house
1. We have access to every property for sale
Wehavenopropertiesforsale,butunlike
sellingagents,wehaveaccesstoevery
propertyonthemarket.
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2. We act for you and work for you
Wearepaidbyyouandreceiveno
commissionsfromsellingagentsorvendors.
We have no interest in any of the properties
werecommendforpurchase.Inotherwords,
allourrecommendationsaregenuineand
completelyindependent.
3. Our research saves you money
EngagingMetropolemeansyouwon‘tpaytoo
much.Selectingtherightpropertyrequires
timeconsumingresearchofmany
factorsincludingpastsalesresults,market
influencesandfactorsthatwouldimpacton
futurevalues.
4. Our experience saves you time
Searchingfortherightpropertytakesa
considerableamountoftime-oneofyour
mostpreciousassets.Manyofourclientsare
busyprofessionalsandunderstandtheneed
toleveragetheirtime.Wedoallthelegwork
andpresentashortlistofsuitableproperties
foryoutoinspect.
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HomeBuyersProtectionPack 20
5. We know property
TheteamatMetropolehasextensive
propertyexperienceintheareasofproperty
purchasingandnegotiation.Youcanbe
assuredthatthepeoplenegotiatingand
securingpropertiesonyourbehalfarewell
informedonmarkettrendsandvalues.
Wefindoutwhatyouwantandgetitforyou
Wetakethetimetodetermineyourneeds
andyourlongtermgoalsatthebeginning
ofthesearchprocesssothatwecanidentify
propertiesthatmeetallyourrequirements.
6. Our skills reduces your stress
Buyingahomecanbeaverystressful
experience.Ourjobistomaketheprocessas
hasslefreeaspossible.Weguideyouthrough
theprocess,coordinatingallthesupport
servicesyouneedincludingsolicitors,
mortgagebrokers,buildinginspectorsand
insurancebrokers.
The right property, at the right price,
unbiased advice.
Now that you understand the value of a buyers‘ agent:Arrange your FREE preliminary consultation. Call us on 1300 METROPOLE and let’s discuss your options
MetropoleProperty Strategists
When you choose Metropole to help you
locate your next home, the following
process occurs:
Step 1 - We establish your requirements
Weofferafreeinitialconsultationto
establishyourrequirements.Yourfamily‘s
shortandlongtermneedswillbecriticalin
determiningthetypeofproperty,thesuburb
andthestrategythatweuse.Ifnecessary,
wewillreferyoutoourfinanceaffiliates,
accountantsandsolicitorstoassistyou.We
developabuyer‘sbriefbasedonyourneeds.
Step 2 - Property search
Onceyougiveusthegoahead,we‘ll
undertakeacomprehensivesearchof
propertiesavailableforsaleinyourtarget
market.Wenotonlyhaveaccesstothe
propertieslistedontheopenmarket,but
alsotomany“silentsales“beforetheycome
onthemarket.
Wewillinspectmanypropertiesonyour
behalf,savingyoutimeandmoney.Wethen
prioritizethem,identifygoodopportunities
andpresentthemtoyou(initiallybyemailif
required)foryourselection.Toassistyou,we
includedigitalphotosoftheproperty,location
maps,floorplansandfurtherdetailsas
required.Ifoneofthepropertiesissuitable,
wewillthenarrangeaninspectiontimefor
you.
Metropole’s 5 Step Home Acquisition Process
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Step 3 - Due diligence process
Ifyouarekeentoproceedwithoneofthe
properties,wewillthenfurtherevaluate
andassessit.Wemayarrangeabuilding
inspectionorgetyoursolicitortoassess
documentationandtheContractofSale.
Wewillresearchwhythevendorisselling
thepropertyandestablishalevelofinterest
inthepropertybythegeneralmarket
toenableustoestablishthebestwayof
negotiatingforitspurchase.Wewillidentify
comparablesalesandrentalsinthearea
andassessthepotentialcapitalgrowthof
yourpropertybasedonhistoricaltrendsand
futureindicators.
Step 4 - Valuation
Throughouraccesstoindustrydatabases,
wecanobtainuptodateinformationabout
thehistoryoftheproperty,includingitslast
saleprice.Wewillassistindeterminingits
valueusingcomparablesalesdata.Wecan
alsoarrangeavaluationbyaregistered
valuerifneeded.
Step 5 - Acquisition strategy
Ifyoudecidetoproceed,wewilldevelopa
suitableacquisitionstrategytoensurewe
buythepropertyatthebestpriceforyou.We
willnegotiatewiththeagentonyourbehalf
orbidatauctiontoensurethatyouobtainthe
propertyforthelowestpossibleprice.
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Now that you understand the value of a buyers‘ agent:Arrange your FREE preliminary consultation. Call us on 1300 METROPOLE and let’s discuss your options
MetropoleProperty Strategists