Over the years that I've been writing this blog, I have tried to make the issues and topics covered as diverse and interesting as possible, so as to be informative to all members of the property market – whether residential buyers, prospective purchasers or investors.
As I was reading the Daily Telegraph a couple of weeks ago, I came across an article that contained a very simple checklist for buying a property. It occurred to me that in my pursuit to cover a variety of property related topics, it has been awhile since I have looked at the very basic fundamental aspects that are important to consider when making a real estate purchase.
I thought that Nhada Larkin's article in the Daily Telegraph – 'Homing in on property facts' (28 March 2011) provided a great summary of what actions to take before buying a property. Essentially, the article reminds buyers that a real estate purchase is one of the few times in life that you won't be able to get an exchange or refund if your purchase doesn't end up being what you wanted – so it is important to get it right.
The article quotes the President of the Real Estate Institute of Australia, David Airey, who says that the way to avoid making a mistake when purchasing a property is to do the necessary research and investigations, including pre-purchase inspections and building inspections.
Conducting this research before buying is essential because, as the article points out, even if you find a fault with a property after your purchase has gone through, the sale cannot be cancelled unless it is found to be a fraudulent transaction. The only way a buyer may be able to address the situation could be through a common law action, which would likely involve a costly (and possibly lengthy) legal process.
The article also points out that it is not only older houses that may have major problems which could prove to be costly later on. New properties can also have faults resulting from poor construction and appliances not working.
An important point for buyers to note, David Airey says that real estate agents have a duty of full disclosure to buyers, which means they must inform buyers of any information (that they know of) which may have an effect on the purchasers' decision to buy the property. He therefore instructs buyers to ask agents directly if anything exists which may affect the property, or if it has any faults.
The article mentions other important questions that buyers should ask when looking to purchase a property. These include the reasons for the owners' decision to sell, the length of time the property has been on the market for, and the age of the property.
As the article puts it – buying a property is a significant and expensive decision to make. Conducting the necessary research and asking the appropriate questions are essential steps to ensure your purchase is a good one. Consider the results of your inspections carefully, and avoid buying properties that come back with significant faults – even if you love a property, try to remember that there will always be further purchase opportunities.
If you have any questions about the buying process please feel free to drop into any one of the hundreds of Century 21 offices located around Australia.