Sunshine7

Can anybody tell me what the procedure is when you want to make an offer on a house? I know there is a form to complete which the estate agent has, but do you offer subject to survey/valuation as in the UK? Do people have surveys done on new-ish houses?

Is the price the house is advertised at usually the price offered or do they tend to sell over/under the asking price?

Completely new to this in Australia and we don't want to make any expensive mistakes! Thanks

Sunshine7

Oh, also ...................... what's the difference between metal and tiled roofs - as in what would make somebody choose one over the other? (I know they are about the same cost-wise when building so it must come down to personal preference).

perth tiger

as a builder in wa i would make sure you get an inspection done before you hand over the readies. you can make an offer subject to anything you want. make sure you are really ready to buy the house before you sign anything. the offer form is a contract and if they accept your offer you cannot get out of it cheaply.

Sunshine7

Thanks for that info - who would I approach to do an inspection, and what type of inspection is it? I know about termite inspections but that's about it. Would I make an offer "subject to satisfactory inspection" or something like that? What would the inspection be looking at? Any idea of cost?

Sorry for all the questions.

perth tiger

you should look for building inspertors in perth. ask about price and what is included. they will do as much as you ask them to. termites are a big problem over here and you need to do a pest inspection wether you do anything else or not.
even new houses have problems. the standard of the average home builder is not very high and the products they use are not the highest quality.
i would urge anyone to get an inspection before they buy.

Genevieve

I would make the offer subject to the following:
1. a pest inspection satisfactory to the buyer/s;
2. a structural inspection satisfactory to the buyer/s (important if you have any concerns about the structural integrity);
3. finance approval from the buyer/s preferred lender;
4. proof of local council approval for any additions/add-ons to the property (these can include sails, pergolas, etc etc).

I'd also offer lower than the asking price - the market is stalling at the moment. Start off at 10% below and negotiate from there.

Good luck!

Sunshine7

Thanks folks. Would you get an inspection even if the house had, say, 6 years left on it's building warranty?

Can anybody who has had an inspection done before buying a house give me a rough idea of what it would cost? Anybody recommend a firm to carry it out? Also, the termite inspection seems to be offered by the real estate agent as standard (though we would have to pay for it - around $200) - would this be better/easier than employing an outside firm to do the termite inspection, do most people just go with the agent's firm?

Wow - 10% below asking price seems a lot to take off, though it would be excellent! We recently told a real estate agent that we would be interested in offering 5% less than the asking price and he said that he wouldn't even put our offer to the sellers! If I were selling I would want to know about every potential offer to be honest, but he wouldn't even write it down. The house was ok and we had thought 5% less than asking was a fair offer so we were slightly mortified when he scoffed

Loch Lomond

I am selling right now. I priced my house to take into account the current market state. What I have found is the whatever the houseprice, potential buyers will discount the marketed sales price. I have now turned down 2 offers on my house, similar houses in my suburb are priced at 300K more than mine.
Buyers are now automatically using the asking price as the start point for discount.
Unless sellers are desperate, I think house prices will stagnate rather than fall. Early next year will be the decider.

HelenTD

From what I've seen, absolutely everybody puts in "subject to finance" as a minimum. You can also put in other clauses, eg "subject to pest inspection" or "subject to building inspection", or whatever your concern is, as others have said. Good point, Genevieve, about planning permission for extensions, also were needed for retaining walls, but might not have been applied for. In a seller's market, if there are several people eager to buy the property, the seller is more likely to dismiss your offer if you seem to be too fussy, BUT, it is a buyer's market at the moment.

Offer less, considerably less. Don't be put off by the real estate agent - remember that this "profession" is generally considered to be the scum of the earth. They earn their commission based on percentage - the less you payk, the lower their commission. It is very different buying property here compared to the UK. Are you absolutely sure about the suburb you are buying in? Have you checked with the local council if there are any development plans for the suburb. This sort of thing is not checked by anyone but you.

As Perth Tiger said, there can be problems even with new houses. If there are 6 years left on the warranty, that means that this house was buillt someduring during the last boom. There were loads of dodgy tradesmen being used during this time, and lots of problems with the quality of work done and materials used. You might "inherit" lots of problems. Definitely get a building inspection done. What's a few hundred dollars compared to the price for a house? There was a thread about building inspectors in Perth a while age: http://britishexpats.com/forum/showt...ding+inspector.

renth

Knock on the owner's door and tell then their agent refused to pass on your offer. The property market is ****ed in Perth ATM, offer 10% under. It's a buyers market at the moment. If they don't accept, move on, loads of property available. You'll come across a forced sale quickly enough.

irishbloo

I thought all agents had to present all offers.

Japonica

PMed you about the roofs...

Dorothy

they do.

Sunshine7

Do you need planning permission to put in a pool?

LongWayHome

What is the upside in purchasing a house now? Would waiting a while be impossible. The WA property market (Brisbane as well) is toxic at present. If you are prepared to wait, prices will come down as sellers become more realisitic.
If for some reason, you must buy now, and are offering cash, go in hard. Start off at least 20% below the asking price. And be prepared to walk away. Believe me there are some distressed sellers out there that need out...