The Smart Way To Buy A Home

The Smart Way To

Buy A Property

Our promise to you Since 1988 we have strived to provide the very best real estate service in Sydney to the many property buyers, sellers, investors and tenants who call on us for help and advice each week. This booklet and the advice it contains is part of that promise. We hope you enjoy the content and profit from the experience. Remember, our offices are open 7 days a week to help you with any real estate matter so be sure to call us if you think we can help. You’ll find contact details for your nearest Prudential Real Estate office on the back page of this booklet.

Which Agent is most likely to Which Agent is most likely to Which Agent is most likely to Which Agent is most likely to find the find the find the find the right property for youright property for youright property for youright property for you???? In simple terms the agent most likely to find the right property for you is one who listens to your needs and takes a genuine interest in finding the best home for you and your family.

This usually means that they will begin by asking questions; questions designed to assist in reaching a better understanding of your needs.

A good agent needs to have the same picture in his or her mind of “the perfect property” as you have in your mind.

Once they truly understand what you are looking for they can properly begin the search for your property.

In addition, the right agent has a large variety of properties in all price categories for you to view. They won’t rely heavily on having to show other agents properties in order to find the home that matches your requirements.

And if they can’t find the right property for you immediately they will spend their own time looking for it so you won’t need to waste your time.

STEP 1

Comparison ShoppingComparison ShoppingComparison ShoppingComparison Shopping In order to find the right property in the least possible time and with a minimum of fuss you need a system.

The system we use is based on the same system you would use when you shop for any product or service, even when you buy your groceries.

We call this system “comparison shopping” and it is the easiest way to find the right property for you and your family. Using this system most buyers can find the right property by viewing less than 12 properties.

Many people, once having chosen the right agent to find their home, have used this system and found their “dream home” after having viewed only 3 or 4 properties.

This is what you do.

On the next 2 pages you’ll find a simple worksheet. Your Prudential property

consultant will provide you with a pen so you can fill in the details as you inspect each property.

The important part is the SCORE. You’ll find this at the bottom of each box. The object is to compare each home you inspect with the picture you have in your mind of the “perfect property”. And as you see each property, give it a score out of 10 by circling the appropriate number in the box.

Remember to compare the property you are inspecting with your idea of the “perfect property” — don’t fall into the trap of comparing the property with, say, the last home you inspected — you have to make the comparison with the picture you have in your mind of the “perfect property” and no other.

If you are buying this property with your partner, be sure that you both agree on the score – you’ll find it impossible if you try to keep two sets of scores. Oh, and one other clue – no half scores like 7.5 or 9.5 – only whole numbers – once again this will make things work more smoothly.

STEP 2

Handy Tip

Property 1 — Address

Best Features :

SCORE 1 2 3 4 5 6 7 8 9 10


Best Features :

SCORE 1 2 3 4 5 6 7 8 9 10


Best Features :

SCORE 1 2 3 4 5 6 7 8 9 10


Best Features :

SCORE 1 2 3 4 5 6 7 8 9 10


Best Features :

SCORE 1 2 3 4 5 6 7 8 9 10


Best Features :

SCORE 1 2 3 4 5 6 7 8 9 10

05


Best Features :

SCORE 1 2 3 4 5 6 7 8 9 10


Best Features :

SCORE 1 2 3 4 5 6 7 8 9 10


Best Features :

SCORE 1 2 3 4 5 6 7 8 9 10


Best Features :

SCORE 1 2 3 4 5 6 7 8 9 10


Best Features :

SCORE 1 2 3 4 5 6 7 8 9 10


Best Features :

SCORE 1 2 3 4 5 6 7 8 9 10

06

Which property is the right property?Which property is the right property?Which property is the right property?Which property is the right property?

To begin with your Prudential property consultant will ask you a number of questions about the type of property you hope to buy.

The answers to these questions ensure that he or she has a clear picture in their mind of the type of property you hope to buy. As a result the properties selected for your viewing should come reasonably close to meeting your expectations.

After inspecting each home you should score each property out of 10 — always comparing the property with the picture you have in your mind of the “perfect property”.

When you see a property that scores 8 or 9 out of 10 ask yourself, “If I had a magic wand and could instantly change anything about this property to make it perfect, what would I change?”

Generally, the answer to this question will fall into one of two categories; those things that can be changed and those things that cannot be changed.

If you are viewing a property where the

one thing you would change is entirely possible (such as putting in new carpet), then ask your Prudential property consultant for assistance to convert that change into a dollar figure.

Estimate the cost of this change and imagine what the property would look like once this change had taken place.

Now think again, with the change — or changes — in place, have you found the right property. If your answer is YES, then your Prudential property consultant will help you with the next part of the process — making an offer to purchase the property.

On the other hand if your answer is NO, then your search must continue.

At this point it is vital that you highlight your likes and dislikes about this particular property to your Prudential property consultant so they can refine their search by focussing on these points. In this way each property to come will get closer and closer to matching your dream.

STEP 3

Making an offer to purchase and Making an offer to purchase and Making an offer to purchase and Making an offer to purchase and negotiating the right pricenegotiating the right pricenegotiating the right pricenegotiating the right price Once you have found the right home most people ask their agent to “make an offer”. And it’s true to say that almost 100% of property sellers are negotiable with their asking price — some by thousands and some by as little as only $50.00.

The trick to completing a successful negotiation is to remember a few important points . . .

1. Most property sellers these days have priced their property’s to sell — this means that most will only be prepared to negotiate a small amount off the asking price. In fact, the incidence of properties selling for full price appears to be on the increase.

2. If you make an offer that is well below the asking price you run the risk of offending the seller. The end result is usually a failed negotiation. Many sellers think that a low offer means the buyer hasn’t got enough money to buy their property and so treat the offer and any subsequent negotiations with disdain.

The best approach is to firstly discuss your offer with your Prudential property consultant. He or she will be the best person to advise whether the owner might consider your offer. Any corrections to your offer can be made at this point — before your agent speaks with the owner.

If your initial offer is fair the owner will probably be willing to enter into negotiations with you. This often involves offer and counter–offer until all parties reach agreement. The best way to ensure that the owner doesn’t change their mind is to complete the negotiation process as quickly as possible — don’t let the matter linger over a period of days.

Throughout this process your Prudential property consultant will be with you all the way. They are there to provide advice and assistance whenever it is needed, so, no matter what you need during this process you can depend on Prudential to help.

STEP 4

Securing Securing Securing Securing the propertythe propertythe propertythe property

Now that you’ve found the right property and negotiated a purchase price your next step is to ensure that no one else can buy the property from under you — you may have heard this described as gazumping.

The law in NSW has changed considerably over the past few years and since 1993 there has been only one certain way to ensure that you are not gazumped and that is to pay a deposit and at the same time sign a contract for the purchase of the property.

Once both you and the owner have signed the contracts the property is yours. This is called “exchange of contracts” and from this point forward no one else can buy the home — even if they offer a higher price. And the owner is locked in — he can’t decide to sell to anyone else and he can’t change his mind about the price. Best of all, you are not locked in. The law allows you 5 clear

business days to make up your mind about continuing with the purchase.

During those 5 days your solicitor or conveyancer will do all the necessary searches, including a pest inspection and a building inspection. You can also use this time to finalise your application for finance and obtain written approval for your home loan.

In this way you are fully protected and no one else can buy the home until you are absolutely certain of your purchase.

If, during the 5 day period, you decide that you won’t buy the home you can withdraw from the sale. Part of your deposit (0.25% of the agreed purchase price) goes to the owner as compensation for having their property off the market exclusively for you and you alone and the rest is refunded to you by way of a cheque.

STEP 5

Most property owners require an exchange of contracts before they take their property off the market – so, if for any reason, you should decide to delay signing the contracts you can be reasonably sure that other buyers will continue inspecting the home you wish to purchase.

WARNING!

09

Choosing the right solicitor or Choosing the right solicitor or Choosing the right solicitor or Choosing the right solicitor or conveyancerconveyancerconveyancerconveyancer This is one of the most important decisions you will make in the purchase of your new property, and so due care must be taken.

A few important points need to be considered . . .

1. Solicitors, like many other professions, have, over the last few years, begun to specialise more and more. In legal terminology the purchase of a property is called conveyancing. Where possible you should endeavour to employ a conveyancing specialist — someone whose primary function is to assist people to buy and sell property.

2. The most common mistake made by property buyers and sellers is to employ a “jack–of–all–trades” as a solicitor. Solicitors such as these are continuously trying to squeeze you in between their court appearances and never seem to be available for advice when you want them. If you would like a list of local, recommended

conveyancing specialists to assist you with your purchase, please ask your Prudential property consultant.

3. Shop around for prices. Solicitors and Conveyancers charge different rates and provide different levels of customer service. Don’t make the mistake of deciding on a solicitor based on the fact that they appear to be the cheapest conveyancer in town. This type of decision will invariably lead to disappointment. When you call to enquire about costs be sure to obtain a full list of services that they will attend to during the course of the conveyance — this will ensure you are comparing apples with apples.

4. At the end of the day you have to feel you can trust your solicitor or conveyancer. Their advice during the purchase will be invaluable and you must feel totally comfortable with them and their staff.

STEP 6

Prudential maintains an up–to–date list of recommended solicitors and conveyancers practising in your local area. These are conveyancing specialists and our recommendation of these firms is based on their ability to deliver a high level of customer service coupled with sound advice and a moderate overall fee. If you would like a list of these solicitors together with their phone numbers and contact details simply ask your Prudential property consultant.

WARNING

Arranging your loan approvalArranging your loan approvalArranging your loan approvalArranging your loan approval Most property buyers require a loan in order to complete their purchase.

In the “old days” this meant making an appointment with the local bank manager and then waiting anxiously to see if the bank would approve your application. Thankfully, those days are gone.

Today it’s a much simpler matter. Here at Prudential Real Estate, as a result of our alliance with CHOICE HOME LOANS we now have our own in–house home loan specialist, Craig Corbett.

Now any property purchaser can see our home loan manager 7 days a week in any of our four offices or arrangements can easily be made to have him visit you at your home at a time that suits you.

Our home loan manager has access to property loans from more than 35 banks and building societies and can match the best available loan to your personal circumstances.

Best of all he can complete all the paperwork for you, submit the documents to the bank or building society of your choice and follow through all the way to settlement.

And how much does this service cost — it’s absolutely free. Apart from your chosen banks application fee there is no cost to you for the service we provide.

You can contact Craig directly by phoning him on 0418 204 120.

STEP 7

We sometimes receive a fee from your chosen bank or building society for submitting the loan application but the cost to you is the same as if you went to the bank yourself. The only difference is that everything can be arranged in the comfort of your own home, the paperwork is completed by our home loan manager rather than by you and the chances of a successful approval are increased substantially as a result. In the end this service provides security and peace of mind during a process that can otherwise be quite stressful.

Please Note

11

Pest and building inspectionsPest and building inspectionsPest and building inspectionsPest and building inspections Just as you might have a mechanical inspection when you buy a car it’s advisable to have your solicitor arrange both a pest inspection and a building inspection before unconditional exchange of contracts.

The pest inspection will check on any possible infestations of such damaging pests as termites and borers and the building inspection will advise of any structural or other defects that cannot always be detected with a cursory viewing of the property.

Both are essential in ensuring your

chosen property will fulfil your needs

for years to come.

If you are buying a new property don’t be fooled into believing that simply because the property is new you can avoid these inspections. There have been many cases over the years of termite infestations in properties only a few weeks old.

If you are buying a “pre–loved” property you can be reasonably sure that the building inspection will highlight at least a few defects. This must be expected

when you are buying a pre–loved property, but the good news is that most of these defects will turn out to be minor in nature.

No matter what these defects might be, unless there is evidence of severe structural problems, there is generally no need to withdraw from the sale.

By advising the owner, via your Prudential property consultant, of the problems highlighted in the building report a satisfactory result can still be negotiated between the parties. This usually involves the owner agreeing to complete any repairs required or both parties agreeing to a minor adjustment to the asking price which reflects the value of those repairs.

Either way a building inspection that draws attention to defects is in everyone’s best interest. As a buyer you get a full and detailed appreciation of the property you are buying and the owner gets a sale. Everybody wins. The No.1 rule, however is never buy a property without both of these inspections.

STEP 8

12

ReReReRe––––inspecting the propertyinspecting the propertyinspecting the propertyinspecting the property

After selecting the right property, exchanging contracts, arranging finance and reviewing the results of the pest and building inspections you may wish to re–inspect your new property.

You may also wish to attend to such things as measuring for new curtains, accurately sizing rooms for intended furniture purchases, checking on the operation of pool filters or even taking the opportunity to show the property to friends and relatives.

Whatever the reason, a re–inspection of the property is easily arranged through your Prudential property consultant.

Given sufficient notice your Prudential property consultant will make all the arrangements with either the current owner or the current tenant for you to be conducted through the property for another inspection.

Our staff are happy to organise these inspections at any time so long as the appointed time meets with the approval of the current occupant of the property.

If the property is vacant it may be possible for your solicitor to arrange daily access to the property for cleaning or painting purposes.

In the case of a vacant property it may even be possible to arrange for you to take early occupation of the property by agreeing to pay a token weekly or daily rent for the time you spend living at the property prior to the day of settlement.

Should you wish to pursue any of these paths please contact your Starr Partners property consultant who will be happy to make all the appropriate arrangements on your behalf.

Simply pick up the phone and call

— we’d love to help.

STEP 9

SettlementSettlementSettlementSettlement The day of settlement is the big day. It’s probably the day you’ll move into your new home. It’s also the day your solicitor hands over your cheque for the balance of the purchase price and, in return, your solicitor receives the appropriate document which transfers the ownership of your new home into your name (and probably the banks name as well).

But there are a number of important issues to attend to in the days leading up this important moment;

1. Be sure to check with your solicitor about the exact amount for any cheque required at settlement. These cheques are often required from you up to a week prior to settlement.

2. Also double check with your solicitor the exact inclusions being sold with the property. These are recorded on the front page of the contract which you signed. You’ll need this list when you inspect the property for your final inspection prior to settlement.

3. Phone your Prudential property consultant and arrange a convenient time to inspect the property in the 24–hour period prior to settlement.

4. The object of this inspection is to ensure that the property is in the same state and condition now as it was when you first viewed it several weeks ago. If the property has deteriorated in any way, call your solicitor immediately.

5. At least two days prior to settlement find out from either your solicitor or from your Prudential property consultant the exact location of the keys to the property so that you can pick them up as soon as settlement occurs. If the keys are being held at a Prudential office (as is so often the case) be aware that we cannot release the keys to you on the day of settlement without the approval of the vendors’ solicitor after settlement has occurred. Our legal requirement to hold the keys until approval to release them arrives (usually by fax) often causes delays. Please discuss this issue with your solicitor.

6. Throughout this process your Prudential property consultant will be with you all the way — simply call us at any time if you should need help or assistance.

STEP 10

14

COUNTDOWNCOUNTDOWNCOUNTDOWNCOUNTDOWN TO MOVING DAY

8888 weeks before the move . . .weeks before the move . . .weeks before the move . . .weeks before the move . . .

� Book removalist or van for the big day.

� Draw a floor plan of your new house. This

will help you decide what furniture stays and

what furniture will go.

� Use up things that can’t be moved — such

as the food in your freezer and flammable

household aerosol cleaning supplies.

� Contact the information office or local

council in your future location and start

gathering information about your new home

town.

6 6 6 6 weeks before the move . . .weeks before the move . . .weeks before the move . . .weeks before the move . . .

� Discuss costs, insurance, packing, loading,

delivery, and the claims procedure with your

mover.

� Prepare an inventory of all of your

possessions. Determine what can be sold

and what can be donated to charity.

� Get copies of your records from doctors,

dentists, solicitors, accountants, etc. Make

arrangements to transfer your children’s

school records.

� Go to your local post office and obtain a

change of address kit. Here’s a convenient

list to remind you of those you should notify

of your change;

� Accountant

� Appliance service contracts

� Solicitor

� Banks

� Book clubs

� Charitable organisations

� Church

� Credit Cards

� Dentist

� Employers

� Frequent Flyer programs

� Insurance companies

� Investment Companies

� Lending institutions

� Magazine/newspaper Subscriptions

� Doctors

� Veterinarian

4444 weeks beforweeks beforweeks beforweeks before the move . . .e the move . . .e the move . . .e the move . . .

� Ask removalist to complete packing a day or two

before loading the truck. If needed now is the

time to arrange for storage.

� Clean or repair any furniture, curtains, or carpets

where needed.

� Hold a garage sale. Use the extra cash to splurge

a little on your new place.

� If you are moving yourself, figure out how many

boxes you’ll need. (Many truck rental companies

will provide this service).

3333 weeks before the move . . .weeks before the move . . .weeks before the move . . .weeks before the move . . .

� Assemble packing material, furniture pads, hand

trolley, packing tape, bubble wrap, nylon packing

string and rope, crumpled newspapers, scissors,

Stanley knife, and don’t forget those large self –stick labels, along with felt–tip markers and boxes

galore.

� Begin packing items that you won’t need. Don’t pack too much weight in a un–reinforced box.

� Arrange to cancel utilities and services at your old

home and have them installed at your new home.

� Get car license, registration, and insurance in

order, as necessary.

2 2 2 2 weeks before the move . . .weeks before the move . . .weeks before the move . . .weeks before the move . . .

� Arrange to transfer all of your bank accounts.

� Make special arrangements to move pets, such as

purchasing airline reservations and travelling

containers. Consult your vet about how to make

moving easier for your pet.

� Inform your current phone company of your move.

� Make arrangements for new telephone service.

� Have your car checked and serviced for the trip.

Make sure tyres are in good shape and all fluids

topped up.

� Cancel any direct deposit or automatic payment

arrangements on bank accounts you are closing.

� Cancel delivery services.

15

COUNTDOWCOUNTDOWCOUNTDOWCOUNTDOWNNNN TO MOVING DAY

2 2 2 2 weeks before the move weeks before the move weeks before the move weeks before the move (cont.)(cont.)(cont.)(cont.)

� Clear up outstanding accounts

� Leave a forwarding address with the Post Office

� Return / retrieve borrowed items.

1111 week before the move . . .week before the move . . .week before the move . . .week before the move . . .

� Transfer all medical prescriptions to a

pharmacy in your new location.

� If you will need a babysitter, arrange for

moving day service

� Return library books, videotapes and dvds.

2222 orororor 3333 days before the movedays before the movedays before the movedays before the move

� Defrost your refrigerator and freezer.

� Have the movers pack your boxes.

� Arrange to have cash, a bank cheque, or

money order to pay the driver on delivery day.

� Set aside valuables and legal documents to go

with you, not on the van.

� Pack clothing and toiletries to go with you -

take a day or two’s extra clothes in case of a

delay

� Pack these essentials in separate boxes to

keep them on hand. You’ll need them during

the first days in your new home.

� Personal items such as comfortable

clothing, toiletries and cosmetics,

toothbrushes, tissues, linen, towels,

iron, alarm clock.

� First meals - Disposable plates, cups

and utensils - Dish soap and sponges

– Foil or plastic wrap - Can opener -

Pots and Pans - Paper towels -

Plastic containers.

� To help you settle in you’ll need -

Telephones - Light bulbs - Garbage

can and bags - Extension cords -

Tool kit - Flashlight - Ladder or step

stool - Dish cloth - Mop and broom

— Cleaning products - Scrub brushes -

Bucket - Vacuum cleaner - Shelf

cleaner - Shelf liner.

TTTTips to help you on Moving Day ips to help you on Moving Day ips to help you on Moving Day ips to help you on Moving Day

� Do–it–yourself movers should pick up the truck

early.

� Make a list of every item and box loaded onto

the truck.

� Let the mover know where you can be reached.

� Before you sign your agreement with the mover,

read the conditions. Keep it in a safe place until

your goods are delivered, charges are paid and

any claims settled.

� Make sure that you have plenty of cleaning

materials so that each room can be thoroughly

cleaned as it’s packed up.

� Check your old house to make sure you have

turned off water and that no left–behind

appliances are running.

� Inspect all cupboards, garage and garden

sheds.

� Lock up all doors and windows.

� Be on hand to answer questions and give

directions to the mover.

If you want some shortcuts . . . If you want some shortcuts . . . If you want some shortcuts . . . If you want some shortcuts . . .

� Wrap sofa and chair cushions in sheets or

plastic bags to use as extra padding for other

large items you transport.

� If you are moving a short distance leave clothes

on hangers and cover with a large garbage bag.

� Move dresser drawers without removing their

contents to avoid repackaging.

� Don’t mix items from different rooms in one

packing box.

� Clearly label boxes with the rooms where they

should be taken when unloaded.

DonDonDonDon’t forget . . t forget . . t forget . . t forget . . . your Prudential

property consultant is available at all

times to assist. If you have any queries

whatsoever about the moving process,

we’ll be happy to help - we’ve even been

known to help our clients pack the

moving van.

PLEASE NOTE :

1. Recipients of this report are reminded that, although due care has been taken in the preparation of the within contained material, prospective property buyers, sellers and investors are always best served by making their own independent inquiries before entering into any real estate transaction.

2. This report has been prepared for the sole and exclusive use of Prudential Real Estate clients and customers. The whole of the contents and design are protected by copyright.

COPYRIGHT © Michael O’Sullivan 2001-2011

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The Smart Way To Buy A Home

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