House Buying Downunder


 

 

Evaluating the houses that you see

 

You will soon compile masses of "House for Sale" advertisements from newspapers, Real Estate Agency books and listings, and advertisements from Internet listings. Some you will discard as being unsuitable but many will be of interest. You need to arrange with each owner, or their representative, a suitable time to view their property.

 

Viewing a property with a Real Estate Agent

 

A Real Estate Agent is the agent, or representative, of the seller. The agent must therefore act in the seller’s best interests and not simply as a neutral intermediary between the parties. But you should be aware that agents have a vested interest in making a sale, rather than a sale at the best price.

The good old days when a real estate agent picked you up in their car to take you to view a property for sale seems to have long since passed. These days the agent typically says they "will meet you there".

Have the Agent arrange a time that is convenient for you and the homeowner. Let the Agent show you through and listen to what he/she has to say. Be polite but try not to respond to their leading questions - they are looking for your response so that they can promote just the things that interest you. Be aware of "Agent speak" - "careful owner" probably means the house has been rented. Be aware that they will try and gloss-over any of your concerns - they are being paid to sell the house.

Be concerned if you are dealing with an Agent who just stands in one room and lets you roam freely to discover what the house has to offer. Agents that yawn, look bored or treat you with rudeness are just as bad. Unfortunately, there is not much one can do about a dud Agent other than ask them lots of questions and make them provide answers, even if they have to ring you back at a later time.

 
Viewing a property listed as an Open Home
  

Open Homes are held on Saturdays and Sundays, with most on Sundays. Often Open Homes run at conflicting times and you will need to plan carefully the houses you want to visit. Plan your day carefully so as to visit 4-5 homes and get a good street map for quickly navigating between Open Homes.

When you arrive at the Open Home, make sure you sign the register and introduce yourself to the Agent. Let them know that you are a serious buyer and not a tyre kicker. If you are not interested in the house the agent has for sale then tell them so on the day and try and tell them what you are looking for. Don't forget to give them your contact details.

 
Viewing a property listed as Private Sale
 
Arrange a time that is convenient for you and the homeowner. Let the homeowner show you through and listen to what he/she has to say. Be polite and ask plenty of questions. If they stray off the topic of the house (my husband ran off), firmly bring them back to the fact that you are there to view their property for sale. Ask for key details:
  • how old is the house?
  • where are the boundaries?
  • how long has the property been on the market?
  • why are the owners selling?
  • value of the annual property rates and the current valuation (Land Value and Capital Value)?
  • any easements or conditions attached to the sale, including protection orders over trees and buildings?
  • a list of all fittings and chattels being included in the sale
  • any recent repairs that have been done?
  • how many other people have viewed the house?

If they cannot answer these simple background questions, they will probably try and gloss-over any of your concerns - and they may not be altogether accurate with the truth.

 
Evaluating the houses that you view
 

Take notes after viewing a house:
Take some notes about the pros and cons of each property that you see, and record the asking price. Keep any notes and pictures of the property that the Agent hands out. Add any print-off that you have made from an Internet search of the property. Keep the details of each property separate because, after seeing 50 properties, they all tend to merge into one and comparing between them becomes very difficult.

Objectively evaluating a house:
Try to objectively evaluate the pros and cons of each room in the house and then the overall pros and cons of the house. Try to avoid being misled by the view, attractive garden, or the spa pool. Concentrate on the key issue - the house. When you look at a house it is easy to miss the finer details. Its only when you have moved into the house do you spot the many small things that you wish you had considered at the time.

General:

  • What is the property title - freehold, leasehold, unit title, cross lease?
  • If a leasehold, how long does the lease have to run and what is the annual ground rent?
  • If an apartment or terraced complex, does the property have a Body Corporate and what are the associated fees?
  • Is the floor level, is the piling sound?
  • Are there any cracks in the walls (inside and out) that indicate movement?
  • Can you detect any dampness or water stains on the walls and ceilings?
  • Can you see borer holes in the interior woodwork, or dry rot on external weatherboards?
  • Do doors open and close easily or do they "stick"?
  • What is the water supply - low or high pressure, town mains supply or water tank/
  • What is the sewage connection, town system or septic tank?
  • How old is the wiring and how sound is the insulation on electrical wires?
  • What type of insulation is installed, and where (roof, ceiling and walls)
  • Is there a list of fixtures that will remain (eg heaters, carpets, dishwasher)
  • Is the property likely to flood? Is there slippage on neighbouring land, banks, streams
  • Can you hear road, airport, industrial noise?

Does the house have enough appeal to warrant further inspection? If not, you should consider the next house on your list.

Kitchen:

  • General size - big/medium/small?
  • Does the kitchen face south or east? (west and north facing kitchens get very hot)
  • How modern are the fittings - kitchen cabinets/ bench top?
  • How much storage space or work space is there is the kitchen?
  • Are there enough power points?
  • Is there a dishwasher, or is there room for one later?
  • Is there a waste disposal in the sink? Does it work?
  • What type of stove - gas / electric/ ceramic cook top/wall oven?
  • What condition are the windows/walls/ceiling/floors?
  • Is there a view out the kitchen window?

If you moved into this house tomorrow are there any aspects that need to be remodelled? If so what are they and what are the approximate costs?

Lounge:

  • General size - big/medium/small
  • Could you get your current lounge suite into this room?
  • Are there enough power points?
  • What condition are the drapes/walls/floors?
  • Is there a view out of the lounge window?
  • What is the heating system?

If you moved into this house tomorrow are there any aspects that need to be remodelled? If so what are they and what are the approximate costs?

Bathroom:

  • How many are there in the house?
  • Is the toilet separate or included in the bathroom?
  • Is there a bath in the bathroom and in what condition?
  • Is there a shower in the bathroom and in what condition?
  • Is the shower over the bath or is it a separate shower?
  • What is the shower water pressure like?
  • Flush the toilet, are there any cracks in the bowl?
  • Is there a bathroom vanity and what is its condition?
  • What condition are the walls / floor?
  • Is there a bathroom heater / steam extractor (does it vent outside or into the roof space)?

If you moved into this house tomorrow are there any aspects that need to be re-modelled? If so what are they and the rough cost of doing so.

Bedrooms:

  • How many bedrooms in the house - large double / double / single / small single?
  • What is the condition of the drapes / blinds /curtains?
  • What is the condition of the walls / floors / floor coverings?
  • Is there a view out the bedroom windows?
  • How warm and sunny are the bedrooms?
  • Are there built in wardrobes / walk-in wardrobes and if so, what size?
  • Is there an ensuite bathroom?
  • How many power points are there in the bedrooms?

If you moved into this house tomorrow are there any aspects that need to be re-modelled? If so what are they and the rough cost of doing so.

Garage / parking:

  • Is there a garage? If so, how many cars can be housed?
  • Does the garage have internal access to the house?
  • Is there an automatic garage door opener?
  • Is there enough room in the garage for a workshop area?
  • If there is no garage, how many cars can be parked off the street?
  • How difficult is the driveway for cars to negotiate - steep or flat slope?

 

Two heads are better than one
 

Two heads are better than one when viewing properties. Often other knowledgeable family or friends will identify opportunities or problems in the property you did not see.

Call the Agent and ask to see the property again. Do, however, take only family or friends that have been successful with their own property purchases.

Don't despair:
Most likely, you will view a lot of properties before the right property comes available. You need to do this research so that you will know that "right" property when the time comes.

However, the search for that "right" house can seem to take forever. But remember that all the other buyers in the marketplace are in the same predicament. They, too, are having to look at a selection of properties in the hope of finding their "perfect" house.

Be prepared to get your heart broken at least once - by finding a suitable property and then losing it to another buyer who out-bids you or closes the deal before you can organise the finance.

If you have been searching for what seems like a lifetime it is very important not to buy the next house that you see in a desperate act of "this will do". And don't be stampeded by an Agent - its your money and you should spend it as YOU see fit. Keep persisting because new properties keep coming on the market and you will eventually find and purchase a home that truly satisfies your requirements.

"It won't happen overnight, but it will happen".

 

 

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