a lesson learned - buying houses
Jul 3rd 2007, 12:52 pm
#16
Loving Perth!
Joined: Mar 2006
Location: Mindarie, Perth, WA
Posts: 99
Re: a lesson learned - buying houses
A word of warning to those purchasing property in Perth.......... there is no cooling off period in WA.
Once you sign on the dotted line and all added clauses become unconditional; ............ you have purchased that property.
Don't just stick the yellow REIWA 16 page publication 'Joint form of General conditions for the Sale of Land' in the drawer.......... read it!
Remember, when purchasing property you can slant the O & A contract to suit your individual circumstances........... bearing in mind a 'clean contract' is more attractive to a vendor re them being likely to accept same.
If something is applicable to your circumstances and can be instrumental in that property being suitable for you; then get your Agent to write-up your offer subject to whatever is likely to affect you.
Once you sign on the dotted line and all added clauses become unconditional; ............ you have purchased that property.
Don't just stick the yellow REIWA 16 page publication 'Joint form of General conditions for the Sale of Land' in the drawer.......... read it!
Remember, when purchasing property you can slant the O & A contract to suit your individual circumstances........... bearing in mind a 'clean contract' is more attractive to a vendor re them being likely to accept same.
If something is applicable to your circumstances and can be instrumental in that property being suitable for you; then get your Agent to write-up your offer subject to whatever is likely to affect you.
Well said! Also note that you don't get the yellow booklet until after you've signed - too late! Worth asking an agent for the yellow booklet and reading it before signing so you know what you are letting yourselves in for! (i.e. what you could be sued for if you pull out)
We didn't and are having to proceed with a purchase we probably would have pulled out of in the UK. My recommendation is to put your offer as 'subject to valuation being the same as the purchase price' - we didn't and ours came back $30K less than we are paying for it. We have no way out and the lender will not decline the finance (as it is illegal for them to do so!)
Anyway we are over it now and looking forward to moving in to our slightly-more-expensive-than-planned-house before too long but would definitely do it differently next time!
Hope this helps someone xx
Jul 3rd 2007, 2:19 pm
#17
BE Forum Addict
Joined: Jun 2007
Location: Carramar in Perth's northern suburbs
Posts: 1,129
Re: a lesson learned - buying houses
Well said! Also note that you don't get the yellow booklet until after you've signed - too late! Worth asking an agent for the yellow booklet and reading it before signing so you know what you are letting yourselves in for! (i.e. what you could be sued for if you pull out)
We didn't and are having to proceed with a purchase we probably would have pulled out of in the UK. My recommendation is to put your offer as 'subject to valuation being the same as the purchase price' - we didn't and ours came back $30K less than we are paying for it. We have no way out and the lender will not decline the finance (as it is illegal for them to do so!)
Anyway we are over it now and looking forward to moving in to our slightly-more-expensive-than-planned-house before too long but would definitely do it differently next time!
Hope this helps someone xx
We didn't and are having to proceed with a purchase we probably would have pulled out of in the UK. My recommendation is to put your offer as 'subject to valuation being the same as the purchase price' - we didn't and ours came back $30K less than we are paying for it. We have no way out and the lender will not decline the finance (as it is illegal for them to do so!)
Anyway we are over it now and looking forward to moving in to our slightly-more-expensive-than-planned-house before too long but would definitely do it differently next time!
Hope this helps someone xx
As long as you like the house and it suits your needs; I really wouldn't be perturbed by a $30K differential in Bank Valuation as opposed to what you paid for the property. There are 'valuers' and 'valuers'; believe me.
Some are good and know what they are doing; some aren't so good and think they are Godlike creatures and won't even give you the time of day. Some valuers are super efficient, take their time and measure up thoroughly, and do what they are paid to do. Some quite frequently just give me a call and ask what such and such a property sold for? Then they do a drive-by and don't even step inside the property........... yet they are doing a valuation? I'm a bit stumped as to how you can do a valuation from the road.......... x-ray eyes?
Banks are notorious for being conservative with their valuations; so honestly, $30K might sound like a lot to be out by........ but when compared to Mindarie prices in general $30K is neither here nor there. You really have bought into a nice area (despite the wind), so I wouldn't let that $30K discrepancy sour things for you.
Re the yellow booklet; I often get know-it-all purchasers at home-opens who should be selling real estate because they know more than me about it........ so they get nowt from me.... don't need anything .....they already know it all. I can usually spot newcomers to WA and if they seek guidance..... I enlighten them with the yellow booklet (which used to be blue); and if they want one I hand out a 76 page WA property buyer's 'bible'. It's what we call good PR; even if the property I'm at isn't for them. I have no qualms about helping out.
Unfortunately as Agents we have a bad name and can't be trusted according to readers on here even..... seemingly we are all tarred with the same brush? As with valuers..... there are Agents...... and Agents .... and I'm pretty happy because I sleep well at night.
Jul 3rd 2007, 3:42 pm
#18
BE Enthusiast
Joined: Aug 2006
Location: WA it is....
Posts: 561
Re: a lesson learned - buying houses
That is a standard clause in Qlds, but not many sellers use it. You must all ways remember to put in a pest & buildings clause, and a Finance clause, which is sometimes used as a pull out clause when people have changed their minds on buying the house, although this is not recommended as it is illegal. Make sure it is the right house for you and have a second or third viewing before going to contract and don't let the agents push you into signing, as MOST will never mention the penalty payment in the cooling off period!
can you tell ive had the rug pulled??????????
Jul 4th 2007, 12:18 am
#19
I've got time . . . . .
Joined: Apr 2006
Location: SE Queensland
Posts: 574
Re: a lesson learned - buying houses
We have put in offers on 5 houses in QLD, every agent explained the contracts and obligations in detail at the time of drawing up the contract (including the 0.25% thingey). We also had to initial each page to say we agreed and understood.
You must have dealt with a really shoddy agent.
We pulled out in 3, were outbid on one and got the last one. If you don't agree and intial a price you're not obliged to pay the 0.25.
If you're signing something read it, in theoory you should let your lawyer read it before you sign it too before signing.
You must have dealt with a really shoddy agent.
We pulled out in 3, were outbid on one and got the last one. If you don't agree and intial a price you're not obliged to pay the 0.25.
If you're signing something read it, in theoory you should let your lawyer read it before you sign it too before signing.
Jul 4th 2007, 1:49 am
#20
Still alive
Joined: Jan 2006
Posts: 28,994
Re: a lesson learned - buying houses
We are 10 minutes from Joondalup/Wanneroo in Carramar; when I applied for Broadband it wasn't available due to the 'switch' being outdated and from the Arc. Bit odd really 'cos Carramar isn't really all that far up the bush.
Telstra put a whacking great satellite dish on our roof and satellite broadband was magic for the last 3 years or so. As soon as the switch got upgraded at Wanneroo we were able to change over to proper Broadband........ and I don't know how we managed with dial up before........no comparison.
Telstra put a whacking great satellite dish on our roof and satellite broadband was magic for the last 3 years or so. As soon as the switch got upgraded at Wanneroo we were able to change over to proper Broadband........ and I don't know how we managed with dial up before........no comparison.
Back to buying houses. I think it's a much better process here than what I've read about in the UK. It seems very similar to the one we had in Canada. If you sign a contract to purchase a property, you are bound to that property. The major difference I see here is that there is only one estate agent involved, and they are representing the seller's interests. Back home, the buyer would have an agent to take them around to show them houses and act on their behalf in the negotiating process.
Jul 4th 2007, 2:47 pm
#21
Loving Perth!
Joined: Mar 2006
Location: Mindarie, Perth, WA
Posts: 99
Re: a lesson learned - buying houses
Sorry to hear things didn't go to plan with your purchase; but, you have bought into a nice area and have invested well re location, lifestyle, and if current trends continue projected capital growth.
As long as you like the house and it suits your needs; I really wouldn't be perturbed by a $30K differential in Bank Valuation as opposed to what you paid for the property. There are 'valuers' and 'valuers'; believe me.
Some are good and know what they are doing; some aren't so good and think they are Godlike creatures and won't even give you the time of day. Some valuers are super efficient, take their time and measure up thoroughly, and do what they are paid to do. Some quite frequently just give me a call and ask what such and such a property sold for? Then they do a drive-by and don't even step inside the property........... yet they are doing a valuation? I'm a bit stumped as to how you can do a valuation from the road.......... x-ray eyes?
Banks are notorious for being conservative with their valuations; so honestly, $30K might sound like a lot to be out by........ but when compared to Mindarie prices in general $30K is neither here nor there. You really have bought into a nice area (despite the wind), so I wouldn't let that $30K discrepancy sour things for you.
Re the yellow booklet; I often get know-it-all purchasers at home-opens who should be selling real estate because they know more than me about it........ so they get nowt from me.... don't need anything .....they already know it all. I can usually spot newcomers to WA and if they seek guidance..... I enlighten them with the yellow booklet (which used to be blue); and if they want one I hand out a 76 page WA property buyer's 'bible'. It's what we call good PR; even if the property I'm at isn't for them. I have no qualms about helping out.
Unfortunately as Agents we have a bad name and can't be trusted according to readers on here even..... seemingly we are all tarred with the same brush? As with valuers..... there are Agents...... and Agents .... and I'm pretty happy because I sleep well at night.
As long as you like the house and it suits your needs; I really wouldn't be perturbed by a $30K differential in Bank Valuation as opposed to what you paid for the property. There are 'valuers' and 'valuers'; believe me.
Some are good and know what they are doing; some aren't so good and think they are Godlike creatures and won't even give you the time of day. Some valuers are super efficient, take their time and measure up thoroughly, and do what they are paid to do. Some quite frequently just give me a call and ask what such and such a property sold for? Then they do a drive-by and don't even step inside the property........... yet they are doing a valuation? I'm a bit stumped as to how you can do a valuation from the road.......... x-ray eyes?
Banks are notorious for being conservative with their valuations; so honestly, $30K might sound like a lot to be out by........ but when compared to Mindarie prices in general $30K is neither here nor there. You really have bought into a nice area (despite the wind), so I wouldn't let that $30K discrepancy sour things for you.
Re the yellow booklet; I often get know-it-all purchasers at home-opens who should be selling real estate because they know more than me about it........ so they get nowt from me.... don't need anything .....they already know it all. I can usually spot newcomers to WA and if they seek guidance..... I enlighten them with the yellow booklet (which used to be blue); and if they want one I hand out a 76 page WA property buyer's 'bible'. It's what we call good PR; even if the property I'm at isn't for them. I have no qualms about helping out.
Unfortunately as Agents we have a bad name and can't be trusted according to readers on here even..... seemingly we are all tarred with the same brush? As with valuers..... there are Agents...... and Agents .... and I'm pretty happy because I sleep well at night.
Thanks for making me feel a bit better about the $30K too - we have ended up thinking the same e.g. banks cautious, small percentage etc. just cross with ourselves for not leaving a way out which was fairly obvious when we think about it!!
Never mind we will have a lovely house soon which meets all our needs so it matters not any more.
x
