Buying Tips

What does ‘as inspected’ really mean?

Typically, buyers anticipate the property will be handed over spic n’ span and thankfully most house-proud sellers leave their homes in an appropriate condition when moving out but buyers should note that there is no obligation on them to do so.
Unless otherwise specified in the contract and for example, If there were a dirty oven, a squeaky laundry door, dirty carpet, marks on the wall painting, damaged or stained blinds before contracting to buy then the seller is under no obligation to have the property professionally cleaned and you need to expect these items be the same at settlement.
Many modern contracts to purchase include provision for essential plumbing, gas and electrical components to be working at settlement. Hence, if at pre-settlement inspection the toilet cistern leaks then the seller ought to make good because the contract says so.
My view is that buyers need to take reasonable steps to ensure the property they have bought will be presented to them in a condition they are satisfied with by contracting all the conditions with the seller to guarantee it.
Buyers ought to have a realistic expectation of what to expect at settlement when buying an established home, considering the age, tear and wear factors and acknowledge that opinions of presentation are subjective.

Tips and traps for buying interstate

Buying property in a state other than where you live can often be a great investment opportunity – but there are a number of things you should first consider.
The vast majority of real estate purchases are made within the buyers’ home states, but that doesn’t mean interstate sales are non-existent. Of course, buying in your home state has the advantage of making a decision that’s based on a thorough knowledge of the area, plus the ability to visit the property in person. But buying property in a state other than where you live can often be rewarding and a great investment opportunity- but if for whatever reason you’re looking to invest in real estate interstate, there are a few things that you should seriously consider prior to putting an offer in. These include:
1. Every state’s property legislation differs
Be familiar with these legislation as whatever you are familiar with in one state could be different in another, one of them is the cooling off period where, for example, there is no cooling off period and the contract is binding once signed off by all parties in WA.
2. Conducting comprehensive research
The internet is a treasure-trove of accessible information, and when combining that and discussions with the local agents, you’ll gain a much better understanding of the market. One important factor is to ascertain the rental demand – the higher the demand, the less chance your property will be unoccupied for extended periods.
3. Checking it out yourself
We strongly suggest getting there yourself to check it out. Think about it – you’re spending hundreds of thousands (if not millions) of dollars, so the cost of an airfare is negligible. You can have a chat to the local council and residents face-to-face.
4. Getting a professional’s help
Approaching a buyer’s agent (for a fee) who has a deep understanding and knowledge of the area is invaluable, and for a number of reasons, too – particularly if you’re unable to view the property yourself, . Interestingly, 75 per cent of interstate/overseas clients purchased sites unseen. Buyer’s agent will be able to offer a huge amount of advice and guidance, providing recent and historical sales figures for you to determine the potentials, they are able to conduct due diligence for you and represent you in the transaction, they can also take care of arranging building and pest inspections and, to top it all off, a quality buyer’s agent is also well adept with negotiations, and will work hard to get you the best price.
This may seem relatively obvious, but the buyer’s agents can’t sell you their stock (as it is unethical to do that and can’t claim their fee from both the buyers and the sellers).

There are definitely opportunities out there outside your home state, but the path to purchase is quite different (as you can probably imagine). For this reason, it’s vital that you take your time and don’t dive into things.