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Steps in Purchasing a Property – A General Overview
The following is a general guide to the steps involved in purchasing a property. It is intended as a guide only and should not be relied upon as a substitute for professional advice. All prospective purchases should seek professional legal and financial advice when purchasing a property.

1. Get your loan pre-approved. Contact your broker or bank to find out how much you can borrow. There is no point in looking for a house if you cannot get the loan to purchase it. Shop around as much as you can and don't get discouraged if one lender says no. Be careful not to actually apply for a loan until you are confident of approval as each application shows on your credit record. If you need a copy of your credit record go to www.baycorp.com.au

2. Research the areas you are interested in. Check websites, real estate agent's windows, local newspapers. Try and get a feel for the market, how much properties are selling for, how fast they are selling, what the average size block of land is etc. Once you narrow down the area you are interested in speak to neighbors to find out what sort of neighborhood it is and what new developments are planned for the area. You can also get information on council infrastructure projects and planned developments by speaking to the town planner at the local council. To find out information about median prices and past property growth go to www.apm.com.au or www.residex.com.au

3. Once you decide upon a property. Be sure to inspect the house/apartment/vacant land and the general area at different times of the day to check if the neighborhood is quiet, is free of traffic and other noise. Look around the general area to see what is nearby – shops, schools, hospitals, factories etc. Inspect the physical condition of the property as best you can – try all the taps, check all the lights work, the windows and door open etc. You should get a professional building inspection at a later stage in the buying process.

4. Negotiate on the price .When you actually find the property you want to buy Depending on market conditions don't be afraid to make low offers and raise them a few times to your final offer. If things are selling very quickly then obviously you will have less time to negotiate, however always try and get the price down. Don't let anyone pressure you. Don't sign anything yet.

5. Agreed upon the priceOnce you have agreed upon the price the Vendor will give you a copy of the contract. You can then give them a small deposit to show that you are serious. You must get a receipt from the Vendor and you must ensure that this money is refundable should your purchase not proceed. At this stage call your solicitor or conveyancer. Don't sign anything until your solicitor has checked the contract and advised you on the terms of it and confirmed that it is acceptable to you.

6. Contracts What your solicitor/conveyancer will do After advising on the contract the main thing that the solicitor will do is to arrange searches with different government departments to check that the building is not illegal, it is not in a flood zone, the land is not polluted, no one is planning to build a freeway or pipeline through the land or a school, train line or hospital etc.The solicitor will explain when you are bound to proceed with the purchase and when no one else can beat you to the property, and under what circumstances, if any, that you can choose not to proceed with the purchase.

7. What your lender will do ? Once you have found a property you need to advise your lender. They may require a copy of the front page of the contract, and may need to organize a valuation. They will also advise you when you have unconditional loan approval. You need unconditional loan approval before you proceed with the purchase. Your solicitor and lender should discuss this with you.

8. Inspection .Arrange a pest and building Inspection. Even if the property is new you still should get a professional pest inspection and a professional building inspection. You can find inspectors in the yellow pages or perhaps find one recommended by a friend or someone independent to the purchase. It is worth paying for an inspection as the fee is very small in comparison to expensive repairs due to things such as termite damage that you might not have found without the inspection.

9. Arrange insurance. Shop around insurance companies and arrange home insurance. Don't forget to insure your contents if you are going to live in the property. If you are going to rent out the property it is well worth arranging landlords insurance that covers loss of rent and tenant damage. Check with your insurance company to see what each policy covers and what is not covered.

10. Final Steps . Your solicitor and lender should arrange things from now on. You will need to sign the loan documents once they arrive and sign other paperwork that your solicitor will organize. You should keep in constant contact with your lender and solicitor to ensure that you have received the documents you were supposed to etc. Once the property settles you are the new owner, and your first mortgage repayment is generally one month after the settlement date.

Centennial Home Loans , Property Sales Direct, and its employees and associates take no responsibility for the information contained in this guide and do not warrant the accuracy of the information contained in this guide.

For Sale by Owner
For Sale By Owner is often referred to as FSBO. It is a real estate term which describes the situation in which a property is offered for sale directly by its owner and without the owner having hired the help of a real estate broker. The desired result is that no real estate commission is associated with the sale. In recent years, the term has been used more broadly to describe the process of marketing, buying, and selling of real property without the representation of a real estate broker. Property Sales Direct is a FSBO site which allows listings for all of Australia.
Many sellers who choose to sell their Homes privately do so to avoid paying a commission to a real estate broker. Depending on the country and agent this commission may vary . In the USA, it is typically 6% of the selling price of the but commissions can range between 5% and 7% in different markets across the U.S. as well as in Canada. In Australia it is estimated to be around 2.5%., however Agents may also charge for an advertising package as well which will run for a specific period of time. For sale by owner has become more popular in countries like Canada and the USA. As of Today FSBO in Canada accounts for 20 to 25 % of homes sold in in Canada . The FSBO market within Australia has been restricted with major property portals only allowing property advertisements through real estate agents. For Sale by owner , FSBO , Homes For sale by owner NSW , QLD, WA, SA, VIC, TAS , ACT Australia sale owner