Greetings from Scoutable and welcome to our October Wrap Up.
I hope you and your loved ones are well.
Properties in Australia are usually sold via auction or private treaty. We are often asked about the process for buying a property under the different methods of the sale.
Private Treaty is where a property is listed for sale with an asking price. The buyer will make an offer to the sales agent who will then present the offer to the seller and negotiations may follow. If you reach price agreement, you have two options (in NSW): -
Option One - sign the contract of sale, pay 0.25% deposit and enter into a five-day cooling off period. During this period, you will complete your due diligence (if not already completed) and your mortgage broker will action your final approval of finance, including bank valuation. If during the five-day cooling off period you do not want to proceed with the property for whatever reason, you can pull out of the contract. The vendor will keep the 0.25% deposit. If you continue with purchase, on the fifth day, you are required to pay the remaining deposit - usually 10% of the purchase price.
Option Two – complete your due diligence first then sign the contract. At this point the full 10% deposit is paid and you will waive the cooling off period.
Please note, these terms can vary for state to state.
The pro of Option One is that the property is exclusively yours, you cannot be gazumped. The con is, if you choose not to proceed for whatever reason (for example, issues with the building inspection or strata report) you will lose the 0.25% deposit.
The pro for Option Two is that you will not pay a deposit until you are satisfied there are no issues with the property. The con is, whilst you are completing your due diligence, someone else could make an offer and you could lose the property.
Off market properties are usually sold via private treaty.
Auction is where the property is sold via public sale to the highest bidder at a set date. The property is usually advertised with a price guide.
To prepare for purchase at an auction you will need -
Finance / mortgage pre-approval
Deposit available
Contract review
Building and/or strata report review
Investigate council / zoning regulations
Check for development applications that could affect the property
Market research / set your price
You need to have completed all your due diligence / research before the auction as you are buying the property unconditionally. Set your price within your means, do not let the competitive action lead you to overpay.
How do I make a pre-auction offer? The most effective way to make a pre-auction offer is to complete your due diligence then submit a signed unconditional contract together with a cheque for the deposit. This is the same as buying the property at auction and will show the vendor you are serious. Top Tip - To put the pressure back on the vendor, give them a time frame to accept your offer, for example 24 hours.
In order to make an unconditional offer you need to waive your rights to the five-day cooling off period (as mentioned in private treaty). In order to do this, you will need to ask your solicitor to provide you with a 66w certificate. The 66w removes your rights to have five days to pull out of the contract.
If you would like to discuss the buying process in more detail or are looking to buy property in Australia, please get in touch to learn about Scoutable's services and how we can assist with your property search.
Until next month,
Kellie Landrey | Principal Buyers Agent
IN THE NEWS
PETS NOW ALLOWED IN SYDNEY APARTMENT AS BLANKET BAN ON ANIMALS LIFTED BY NSW COURT OF APPEAL
https://www.domain.com.au/news/pets-now-allowed-in-sydney-apartments-as-blanket-ban-on-animals-lifted-by-nsw-court-of-appeal-994936/
HALF OF AUSTRALIA'S PAUSED HOME LOANS STILL NOT BEING REPAID AS AMNESTY PERIOD COMES TO A CLOSE
https://www.abc.net.au/news/2020-10-15/half-of-deferred-australian-home-loans-back-to-payments/12767990
ALEXANDRIA CONVERTED WAREHOUSE BREAKS SUBURB RECORD AHEAD OF AUCTION BY $600,000
https://www.news.com.au/finance/real-estate/sydney-nsw/alexandria-converted-warehouse-breaks-suburb-record-ahead-of-auction-by-600000/news-story/8f2205bdfdb1516d5ef4617c5311c1ff
PROPERTY OF THE MONTH
10 Woodward Place, St Ives
10 Woodward Place, St Ives is a Palm Springs-style freestanding house designed and built 1968. A beautifully maintained example of modernist architecture. It is offered for sale for the first time in five decades.
Set on a 961sqm block of land, the house wraps around a north facing 10m swimming pool. The internal accommodation is L-shaped, creating two distinct wings - one for living, one for sleeping. There are five bedrooms, three bathrooms in the sleeping wing. Living, kitchen, dining, family room, study and laundry in the living wing. The property provides a double lock up garage.
The beauty of this home is the many original features, including timber panel walls and open display units, that work as room dividers. Timber panel partition doors slide back into the walls revealing the dining space and another reveals the large family room.
St Ives is situated on the Upper North Shore of Sydney, 18km north of the CBD.
The property is for sale via auction, scheduled for 21st November with a price guide of $2,150,000.
If you'd like to know more about this property or any others, please get in touch.
