HOW TO MANAGE A PROPERTY PURCHASE
There are so many things that have to come before this…researching property, working out your buying strategy, saving for your deposit, getting your purchasing team together, going to open homes, making an offer and negotiating your purchase/conditions. So by the time you get here - wherever here is - you could be forgiven for feeling a bit of Buyer Fatigue.
Buying a home is exciting—but contracts don’t wait and this is no time to lose steam.
This is the best time to get out a check list and just go through the motions so that nothing is missed.
Unless you buy at auction, you will have some important dates to write down. For example:
Contracts exchange [once you’ve signed your side of the contract, the actual exchange is taken care of by the conveyancers & real estate agents]
Cooling off period [most contracts have this - unless you waive the cooling off period which we don’t recommend - is 5 business days from exchange where you can back out of the contract but you will lose a small part of your deposit - example NSW its 0.25% of the purchase price]
Pest and building clause [can be anywhere between 7-21 days from the exchange of contracts - your building inspection isn’t just a step, it’s your safety net. If something shows up, you’ll want time to investigate, negotiate or walk away with confidence so 7 days is a bit tight, really only 2 days longer than your cooling off period…21 days is excessive…we think 14 is just right]
Finance clause [is usually also 7-21 days from the exchange of contracts - you will need to make sure your mortgage broker and conveyancer are in communicado over this part of your purchase]
Unconditional date [this is when you really can’t back out…you could but you’ll lose your deposit so at this stage it’s critical that you have no more conditions - especially finance]
Settlement date [you get the keys, do a final walk around with the agent and the conveyancers and your lender settle the matter so that the title is put into your name, the mortgage starts and it’s GO TIME.
How to manage a property purchase…a lot like trying to eat an elephant.
That’s just a quick but thorough overview. Of course your particular situation will vary wildly from that.
For example some agents are now asking for very short pest and building inspection clauses. And if you buy at auction, you won’t have to worry about a lot of that to and fro-ing because it’ll mostly happen on the day, settlement day, not withstanding.
Pro Tip: Book your inspections and tee up your finance early so you’re not rushing against deadlines. Future-you will thank you.
Check out the First Home Buyers Hub - Resources to find a general Purchase Timeline PDF. We suggest you print it off and when it’s your time to go through the process, make note of Important Dates on the back of it!
🔑 Peace of mind starts with time on your side.
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