Who do I need on my team when buying a property?
They say it takes a village to raise a child, and similarly, it takes a team of people to buy a property. Buying a property is a significant financial investment and one where you should ensure you don’t just have a team, but you have the ‘A’ team. The best in the business helping you out.
It can be hard to know who you need and when you need to engage them and this will change based on your circumstances and/or the type of property you are looking at buying.
Finance - a mortgage broker or a bank finance manager
If you are lucky enough to not require funding from a bank to purchase a property then you can skip this one, but 9/10 people require finance to some degree. One of the first things you should do is establish how much you can borrow from the bank (either via a mortgage broker or the bank directly) so that you can understand your budget, and ensure you are looking for a property that fits your budget. This is commonly called pre-approval or approval in principle.
You may have existing equity in another property which you wish to use towards the purchase and you should ensure you have discussed this with a broker or your bank to understand how much of that equity you can access.
Most Sydney properties are sold either via auction or private treaty where the vendor will require a cooling off waiver (a section 66W waiver) and therefore it is critical that your finances are approved and in order, as in those scenarios you do not have the luxury of withdrawing from the contract if your finance is not approved.
Legal representation from a conveyancer or a solicitor.
Everyone will need a conveyancer or a solicitor when buying a property. You should decide on who you will use when you have your finance approved and are actively looking for the right property. Do not wait until you find the property as at that point, you don’t have time to waste and may need to move fast.
See our separate blog on choosing between a conveyancer or a solicitor here.
Strata Inspector
If you are buying a unit/ apartment, townhouse, villa, or property that is part of a complex or collection of properties then you need to understand the body corporate financial position and any risks or issues you should be aware of. This is best done by engaging the services of a strata inspector who will organise to go and inspect the strata records and produce a report for you based on their findings.
There is usually a fee associated with this and so if you find a property you are interested in it is best to ask the agent if a strata report has already been done that you can view and/or purchase, and if not, let them know you will be organising one as they will need to provide permission for the files to be opened.
Once the strata inspector provides you the report, you should read it and provide a copy to your conveyancer or solicitor. Only after reading and understanding the strata issues should you engage in a conversation on price with the agent.
If you are buying into a Company Title block then similar to strata, a Company Title records inspector should be engaged. If you are buying a house/ Torrens title property, that is not part of a complex then unlikely you will require a records inspector.
Building and pest inspector
If you are buying a house then you are buying the building and should engage an expert to advise on the structural integrity, defects, hazards, and insights into any remedial work that may be required. Look for a report that also includes pest inspection e.g. damage caused by termites. The detail of these reports can also be dependent on the level of access the inspector can gain to the property e.g. will they be able to access the attic, is there under the house access.
The cost of this is with the prospective buyer and so you should organise an inspection once you are serious about wanting to make an offer or be ready for auction.
If you are buying a strata unit/apartment then speak to your solicitor or conveyancer about whether this would be required for the particular property or not.
Builder
If you are buying with a view that you will do renovations and/or knockdown rebuild, then recommend you hire a builder to come with you to an inspection and give you their opinion. They may point out issues that you cannot see, for example, renovating a bathroom in an old terrace house may require completely new plumbing and it is worth understanding these costs before you commit to purchase.
Property Manager
If you are looking to buy a property as an investment, then once you have exchanged contracts to buy (and before settlement), it would be best to engage a property manager at this point so you can minimise the time after settlement the property is vacant.
Removalists
Buying a property can be stressful, so ensure you hire expert removalists who will make moving day as stress-free as possible. You can line this up once you have exchanged on the property as the settlement date will be confirmed. If you have the luxury to have a 2-3 day overlap between properties then it is highly recommended to book removalists for the day after settlement as sometimes issues do occur on settlement day and you want to avoid being left out in the cold (literally) for a night.
If you are moving in on settlement day then a few tips:
You will need to coordinate to pick up keys from the real estate agent once the settlement is complete (think about the logistics if the agent’s office is not near the property)
You may end up paying removalists to wait around while this happens so ask your solicitor or conveyancer to organise a morning settlement so that you can get the keys as early in the day as possible.
Buying a home is the time that you want the ‘A’ team of people, so ensure you do your research on who you need and who can provide you the best quality service.
