When you start looking for a home, how do you know which is the right one?
Give some thought to what type of home you require and where you would like to live. It may be a brand new house in a new area that appeals to you because of the kind of people — young families perhaps — who will be living there. Maybe you would prefer an established house, an older style home or a property with hectares of land. Are you interested in renovating? Importantly, you must consider not only what looks attractive, but what will suit the size of your family now and in the near future.
Make a list of your priorities. Do you need to be near public transport? Are there schools in the area that meet your needs? How will you get to work and what cost will be involved? If there is limited public transport will you require an extra car? If you are a one car family, are shops in close proximity? Is the garden relatively maintenance free? If you don’t enjoy the garden you may wish to consider a villa unit or a town house.
Your final selection of a home may be one that requires some general repairs and you may be concerned about its structural soundness. You could have an expert in the building industry inspect the property thoroughly and supply you with a written report on the condition of the property and a general indication of the cost for repairs.
Areas of investigation should include the condition of wiring, plumbing, stumping, roofing and structure. Alternatively, you may choose to purchase the property with a special condition included in the contract of sale. The condition would specify that a building inspection be conducted by a registered builder/architect and a satisfactory report obtained prior to the sale becoming unconditional.
It is important that you budget for all the associated costs when purchasing a property to ensure no extra strain is placed on the family finances and that you can relax and enjoy your new home.
Allow for the cost of State Government stamp duty, the conveyancing costs, mortgage registration, stamp duty on any mortgage, financial institution cost, such as a valuation fee and/or establishment fee. Other costs to include are pro rata adjustments of council and water rates, insurance on the building and contents, removal costs ranging from hiring a truck yourself to using professional removalists. Also seriously consider insuring the contents in transit.
Buying at auction
Firstly, inspect the property thoroughly. This may be arranged by appointment with a Ray White agent or by attending an “Open House”. The agent will not disclose the reserve price but may give you a general indication of the expected price range.
Importantly, contact your financial institution to ensure that you are eligible for a loan as the auction contract is an unconditional sale. Read the contract and other documentation to discover if the terms of sale will suit your requirements and whether any items are not included in the sale.
How to bid at auction
Position yourself so that the auctioneer can see you. There is no benefit at all in being hidden at the back of the audience. The auctioneer will read the terms and conditions of sale and then conduct the actual bidding, probably calling for an opening bid. At this point you may choose to bid prominently by calling out your bid. You may prefer a discreet nod of the head or simply a raised finger. This should be quite sufficient but please make sure the auctioneer sees you!
If you are the highest bidder and the property is knocked down to you, you will be expected to sign the contract immediately and pay the required deposit.
In the event of the property being passed in, the highest bidder often has the first right to negotiate at the reserve price.
If possible try to attend a Ray White auction or two prior to the day to get the “feel” of how an auction is performed.
Can Ray White bid at auction for me?
We are very much aware that bidding at auction may appear to be a daunting task to some people. However, we are unable to bid on your behalf when we act for the vendor, as such a situation involves conflict of interest. That is to say, we are engaged by the vendor and indeed charge the vendor a fee to obtain the highest possible price in the market place at that time. To purchase the property on your behalf for the lowest price possible on the day of auction, would place us in an untenable situation. To assist buyers who are comparative strangers to the auction system, we are happy to explain the very straight forward procedure for bidding and also have some notes to guide you through the auction.