The information presented in this page is of a general nature only. It does not take into account your individual circumstances.
Know your needs and wants
- Compile a list of your preferred suburbs and areas
- Essential features in a property (must-haves)
- Non-essential features but nice to have (optional)
Get informed about the property market
- Research the market value of property in your desired suburbs/location.
Prepare your finances
- Cash. The purchase is pretty straight forward
- Purchase subject to finance. The purchaser should carefully assess their financial situation and desired standard of living when deciding how much they can afford to borrow and repay.
- Consider the expenses associated with purchasing a property.
- Consider the ongoing costs of property ownership.
Inspect the property prior to purchasing
- This will give you a feel for the property and assess whether it is suitable for your needs.
- If you decide this property is suitable, prior to signing the contract, you can engage the services of a qualified building and pest inspector to detect any problems with the property which is not obvious to the average buyer.
Ensure documents are in order
- Engage the service of a solicitor/conveyancer to check the section 32 vendor’s statement and the contract of sale.
- Private treaty. Prospect purchasers are invited to make offers to the vendor. The purchaser then negotiates price and terms with the vendor through the estate agent as facilitator. It is hoped a mutually agreed sale price and terms can be achieved. When a prospective purchaser makes a written offer, they will be asked to place a deposit or a partial amount with the remainder to be paid at a date set out in the contract of sale. The deposit amount is usually 10% of the purchase price and it will be held in the trust account of the vendor’s solicitor/conveyancer. If your offer is accepted then the deposit will form part of your payment to the vendor on the settlement date. If your offer is rejected and you do not wish to negotiate further, the amount will be returned to you.
- Auction. Several purchasers will attend on the auction day and place competing bids to secure the property. The property will be offered to the highest bidder, at the seller’s discretion. If a property is sold at an auction the buyer cannot place conditions on that particular sale.
- Please note: there is no legally binding contract until both buyer and seller have signed the contract of sale.
- Make a list of items within the property which you would like to be included in the sale.
- Settlement is the event when ownership of a property passes from the vendor to the purchaser and the balance of the purchase price is paid to the vendor. This meeting is usually attended by the solicitors/conveyancers from the purchaser and the vendor and (if applicable) a representative from the lender or bank if there is a mortgage involved in the transaction.
Please contact any of the iProperty Melbourne team member to discuss further.
The information presented here has been sourced and adapted from Consumer Affairs Victoria website.