Steps to buying a house

[SerenaJ]

We've found a house we're interested in buying (Brisbane), but it goes to auction on Saturday. We've only just applied for an offer of a loan so our finances won't be sorted in time to bid, but we're planning on going to the auction to see if the property gets passed in and if we have a chance of negotiating a contract (we've been advised only to sign one with a 14 day finance clause). What we're totally bewildered by is what inspections and legal checks we should get done. There is a building and pest report (provided by the seller) but would most people get their own done in addition? What other inspections would people normally get done (or is that it)? Also, when would we get a solicitor on board? Does the solicitor check over the contract - if so would this be before or after signing the contract? We had a quote from a solicitor for all sorts of searches that they can undertake - but which are recommended? The house was built in the 1930s if that has a bearing. Thank you for any help / advice.

 

[ScottieGirl]

I bought and sold in NSW where most houses sell at Auction. You need a pest and building inspection but its  not uncommon for the buyer to provide  it.

The contract has to be reviewed by a conveyancer and there are a variety  of searches they have to do. For Auctions the contract is reviewed  by a solicitor before  the auction as they are legally binding, so if one of the searches found something untoward and you pulled out you would lose the deposit, which in NSW is paid on the day of the auction. Essentially you need the contract reviewed before you put down the deposit  and until you put down the deposit the buyer can accept any other offer. It's not like the UK where you agree a price subject to contract, talk to your mortgage adviser they should be able to help. Or contact Fair Trading

Are you a permanent resident? If not you need FIRB approval.

[SerenaJ]

Thanks for the advice. So, if buying at auction, you show the contract to your own solicitor prior to the auction? Seems sensible to me, only our mortgage broker said you only need to appoint a solicitor after signing the contract? Same for searches. If you pay for all the searches prior to the auction, then don't get the house, this is a huge expense. But is that just what you have to do when buying at auction? We don't want to take risks and put a deposit down only to lose it, but similarly we don't want to keep paying thousands of dollars getting contracts checked and searches done, and then getting outbid at the auctions. Yes we are PR residents. Thanks for your help. It feels so unfamiliar compared to the UK. :-)

[Guest The Pom Queen]

Also remember most of the houses don't sell at auction. You could put an offer in prior to auction subject to conditions or after if there are no bids.

[Parley]

That depends on the area where you are buying.

Around where I am 95% would go to auction.

Generally if it is a high demand area it will be auction. Rural or less active maybe more private sales.

[Skani]

On 5/2/2017 at 8:08 PM, SerenaJ said:

We've found a house we're interested in buying (Brisbane), but it goes to auction on Saturday. We've only just applied for an offer of a loan so our finances won't be sorted in time to bid, but we're planning on going to the auction to see if the property gets passed in and if we have a chance of negotiating a contract (we've been advised only to sign one with a 14 day finance clause). What we're totally bewildered by is what inspections and legal checks we should get done.

 

This is Queensland government information on buying a house at auction:

https://www.qld.gov.au/law/housing-and-neighbours/buying-and-selling-a-property/buying-a-home/ways-to-buy-your-home/buying-at-auction/

[Annie_H]

Hi Serena,

I am a licenced real estate agent in Queensland and the rules are different from NSW. 

If buying at auction there are no  conditions you have bought your seld a house once the hammer goes down on your bid and the auctioneer says sold!  In queensland the agent does the contract unlike NSW. I always recommend that anyone looking to purchase should always get preapproval from the bank first, however I would recommend gowing through a mortgage broker.  There is no point looking at property if you dont know how much you can borrow, as this can be waisting your time. As for a finance clause id recommed 14 days, which is pretty standard. Building and pest the same 14 day, always get your own.  Remember there is a 5 day cooling off period from date of contract and remember you dont have a contravt until all parties have signed.when signing a contract. I'm happy to give you more tips as a buyer, so feel free to contact me.

Regards,

Anne Harris 

[SerenaJ]

On 5/7/2017 at 22:27, Annie_H said:

Hi Serena,

I am a licenced real estate agent in Queensland and the rules are different from NSW. 

If buying at auction there are no  conditions you have bought your seld a house once the hammer goes down on your bid and the auctioneer says sold!  In queensland the agent does the contract unlike NSW. I always recommend that anyone looking to purchase should always get preapproval from the bank first, however I would recommend gowing through a mortgage broker.  There is no point looking at property if you dont know how much you can borrow, as this can be waisting your time. As for a finance clause id recommed 14 days, which is pretty standard. Building and pest the same 14 day, always get your own.  Remember there is a 5 day cooling off period from date of contract and remember you dont have a contravt until all parties have signed.when signing a contract. I'm happy to give you more tips as a buyer, so feel free to contact me.

Regards,

Anne Harris 

Thanks so much for your reply - sorry for the late response; I've been away with work and then not had a chance to check messages since. I'd be keen to understand any tips relating to buying at auction, as it seems all the properties we are looking at are going this way. Does the 5 day cooling off period you mention only relate to properties not bought at auction? In regards to building and pest, are you suggesting that if the vendor has had one done prior to auction we ignore it and get our own done in every instance? Why is this? Is it not reliable if purchased by the vendor (i.e. could they have negotiated to have certain things omitted from the report or something?). Would you have any advice on the contract? As the contract is already drawn up prior to the auction, what should be our course of action? Should we have a solicitor review it prior to the auction? Or are contracts all pretty much of a muchness and we should just go with it? Thanks so much for your help. We've seen anther property that goes to auction on Saturday (we lost out on the last one I was posting about) so we need to get ourselves organised pretty quickly! :-)