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Evaluating the houses that you see
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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.
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Viewing a property with a Real Estate Agent
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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.
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Viewing a property listed as an Open Home
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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.
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| Viewing a
property listed as Private Sale
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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.
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| Evaluating
the houses that you view
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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?
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Two heads are better than one
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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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www.house-buying-downunder.com
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