Making an offer
May 14th 2007, 7:01 am
#16
BE Forum Addict
Joined: Jun 2003
Location: Sydney beachside
Posts: 3,505
Re: Making an offer
May 14th 2007, 7:12 am
#17
has lost The Game
Thread Starter
Joined: Apr 2005
Location: Chippendale, Sydney
Posts: 8,735
Re: Making an offer
Am I right or wrong?
S
May 14th 2007, 7:27 am
#18
Extended Member
Joined: Mar 2004
Location: Sydney
Posts: 486
Re: Making an offer
Okay,
First it's best to get pre-approval on the mortgage. This usually comes in the form of a certificate that shows the maximum asking price you can offer up to based on your earnings. Most banks/lenders offer this.
Then you want a solicitor to do the conveyancing, when needed, but it helps to have one before you start. You don't have to commit yourself straight away, just call around and ask the price (usually fixed 1,500 - 2,000) so that if you find the house you want you're in a position to call them up and go for it. I think it's best to choose a local one, or one in the area you want to buy, but either way one that has experience of house purchases.
In NSW you can make an offer, and if it's accepted you can put down a 0.25% deposit to prevent the vendor taking a higher offer (sometimes this can be waived). You could instruct your solicitor to make the offer on your behalf, and they may want to see a copy of the contract before you sign it. If they're happy you pay your 0.25% deposit. This is the time to get the building inspection and pest inspection done. These can be arranged separately by you, or organised by your solicitor and added to your bill. This is the 5 day cooling-off period. If it can't be organised in 5 days you can usually get an extension of a day or 2 if needed (if the vendor has accepted your offer they shouldn't really have a problem with something beyond your control). If there's a disaster with the inspections you can pull out, but you lose your 0.25% - this goes to the vendor. If you go ahead you put down the remainder of the deposit as stated in the contract.
If everything's acceptable (well, if it's not falling down, there are nearly always things that need fixing), you proceed to (usually) a settlement date 42 days after you put down the original deposit, during which time the mortgage documents are drawn up and the solicitor does the legal stuff like land searces.
Hope this helps,
Big.
First it's best to get pre-approval on the mortgage. This usually comes in the form of a certificate that shows the maximum asking price you can offer up to based on your earnings. Most banks/lenders offer this.
Then you want a solicitor to do the conveyancing, when needed, but it helps to have one before you start. You don't have to commit yourself straight away, just call around and ask the price (usually fixed 1,500 - 2,000) so that if you find the house you want you're in a position to call them up and go for it. I think it's best to choose a local one, or one in the area you want to buy, but either way one that has experience of house purchases.
In NSW you can make an offer, and if it's accepted you can put down a 0.25% deposit to prevent the vendor taking a higher offer (sometimes this can be waived). You could instruct your solicitor to make the offer on your behalf, and they may want to see a copy of the contract before you sign it. If they're happy you pay your 0.25% deposit. This is the time to get the building inspection and pest inspection done. These can be arranged separately by you, or organised by your solicitor and added to your bill. This is the 5 day cooling-off period. If it can't be organised in 5 days you can usually get an extension of a day or 2 if needed (if the vendor has accepted your offer they shouldn't really have a problem with something beyond your control). If there's a disaster with the inspections you can pull out, but you lose your 0.25% - this goes to the vendor. If you go ahead you put down the remainder of the deposit as stated in the contract.
If everything's acceptable (well, if it's not falling down, there are nearly always things that need fixing), you proceed to (usually) a settlement date 42 days after you put down the original deposit, during which time the mortgage documents are drawn up and the solicitor does the legal stuff like land searces.
Hope this helps,
Big.
May 14th 2007, 12:39 pm
#19
BE Forum Addict
Joined: Jun 2003
Location: Sydney beachside
Posts: 3,505
Re: Making an offer
Okay,
First it's best to get pre-approval on the mortgage. This usually comes in the form of a certificate that shows the maximum asking price you can offer up to based on your earnings. Most banks/lenders offer this.
Then you want a solicitor to do the conveyancing, when needed, but it helps to have one before you start. You don't have to commit yourself straight away, just call around and ask the price (usually fixed 1,500 - 2,000) so that if you find the house you want you're in a position to call them up and go for it. I think it's best to choose a local one, or one in the area you want to buy, but either way one that has experience of house purchases.
In NSW you can make an offer, and if it's accepted you can put down a 0.25% deposit to prevent the vendor taking a higher offer (sometimes this can be waived). You could instruct your solicitor to make the offer on your behalf, and they may want to see a copy of the contract before you sign it. If they're happy you pay your 0.25% deposit. This is the time to get the building inspection and pest inspection done. These can be arranged separately by you, or organised by your solicitor and added to your bill. This is the 5 day cooling-off period. If it can't be organised in 5 days you can usually get an extension of a day or 2 if needed (if the vendor has accepted your offer they shouldn't really have a problem with something beyond your control). If there's a disaster with the inspections you can pull out, but you lose your 0.25% - this goes to the vendor. If you go ahead you put down the remainder of the deposit as stated in the contract.
If everything's acceptable (well, if it's not falling down, there are nearly always things that need fixing), you proceed to (usually) a settlement date 42 days after you put down the original deposit, during which time the mortgage documents are drawn up and the solicitor does the legal stuff like land searces.
Hope this helps,
Big.
First it's best to get pre-approval on the mortgage. This usually comes in the form of a certificate that shows the maximum asking price you can offer up to based on your earnings. Most banks/lenders offer this.
Then you want a solicitor to do the conveyancing, when needed, but it helps to have one before you start. You don't have to commit yourself straight away, just call around and ask the price (usually fixed 1,500 - 2,000) so that if you find the house you want you're in a position to call them up and go for it. I think it's best to choose a local one, or one in the area you want to buy, but either way one that has experience of house purchases.
In NSW you can make an offer, and if it's accepted you can put down a 0.25% deposit to prevent the vendor taking a higher offer (sometimes this can be waived). You could instruct your solicitor to make the offer on your behalf, and they may want to see a copy of the contract before you sign it. If they're happy you pay your 0.25% deposit. This is the time to get the building inspection and pest inspection done. These can be arranged separately by you, or organised by your solicitor and added to your bill. This is the 5 day cooling-off period. If it can't be organised in 5 days you can usually get an extension of a day or 2 if needed (if the vendor has accepted your offer they shouldn't really have a problem with something beyond your control). If there's a disaster with the inspections you can pull out, but you lose your 0.25% - this goes to the vendor. If you go ahead you put down the remainder of the deposit as stated in the contract.
If everything's acceptable (well, if it's not falling down, there are nearly always things that need fixing), you proceed to (usually) a settlement date 42 days after you put down the original deposit, during which time the mortgage documents are drawn up and the solicitor does the legal stuff like land searces.
Hope this helps,
Big.
You do not have to pay a deposit when you make an offer (though you can to show good faith, if you want to). If you pull out before contracts are signed then there should be no penalty at all - how can there be? You've got nothing in place except a verbal agreement.
Some good basic info on the NSW rules here:
http://www.fairtrading.nsw.gov.au/re...ngprocess.html
May 14th 2007, 12:46 pm
#20
has lost The Game
Thread Starter
Joined: Apr 2005
Location: Chippendale, Sydney
Posts: 8,735
Re: Making an offer
That's almost right - except the five day cooling-off period is actually after the contracts have been signed and it has nothing to do with the offer/ acceptance date. You pay a penalty of 0.25% if you pull out of the contract within the five day cooling-off period. If you pull out of the contract AFTER the five days is up, you lose your whole deposit (usually 10%).
You do not have to pay a deposit when you make an offer (though you can to show good faith, if you want to). If you pull out before contracts are signed then there should be no penalty at all - how can there be? You've got nothing in place except a verbal agreement.
Some good basic info on the NSW rules here:
http://www.fairtrading.nsw.gov.au/re...ngprocess.html
You do not have to pay a deposit when you make an offer (though you can to show good faith, if you want to). If you pull out before contracts are signed then there should be no penalty at all - how can there be? You've got nothing in place except a verbal agreement.
Some good basic info on the NSW rules here:
http://www.fairtrading.nsw.gov.au/re...ngprocess.html
Thanks everybody. I'm much happier about it all than I was 6 hours ago! Going to sort the motgage out tomorrow, and hope for the best on the offer...
Cheers
S
May 15th 2007, 6:54 am
#21
Extended Member
Joined: Mar 2004
Location: Sydney
Posts: 486
Re: Making an offer
Okay,
In NSW you can make an offer, and if it's accepted you can put down a 0.25% deposit to prevent the vendor taking a higher offer (sometimes this can be waived). You could instruct your solicitor to make the offer on your behalf, and they may want to see a copy of the contract before you sign it. If they're happy you pay your 0.25% deposit.
In NSW you can make an offer, and if it's accepted you can put down a 0.25% deposit to prevent the vendor taking a higher offer (sometimes this can be waived). You could instruct your solicitor to make the offer on your behalf, and they may want to see a copy of the contract before you sign it. If they're happy you pay your 0.25% deposit.
Obviously no one's committed until then.
Big.
