December 2008
The art deco apartment was bustling with enthusiastic property hunters. The property was nicely renovated though a little untidy. There were dishes in the sink, clothes scattered on the unmade bed and wine bottles on coffee table. Having done a lap around the property I made my way through the crowd to the agent. I suspected the agent was pretty useless as he flicked through his notes trying to find answers to my questions.
When you're buying a property you’ll need to deal with estate agents sooner or later. Always remember that the agent represents the vendor (seller) and is being paid a commission to get them the best price. A buyer’s advocate can level the playing field. For a fee they will take care of the research, searching process and eventual negotiation for you. As always check their backgrounds and credentials before engaging an advocate. Many advocates have broad contacts in the real estate industry and can often source property before it gets to the auction stage saving you money.
There are other professionals that can help with your purchase. You will need a solicitor or conveyancer to transfer the title of the property into your name. This is an involved legal process and is something I have only seen done badly when people try to do it themselves. Don’t be cheap either. You’re spending hundreds of thousands so hire some one who’s good. Generally speaking only a solicitor will be able to offer advice on the contract of sale and section 32 and therefore will probably be dearer than a conveyancer. Depending on the age of the property and its condition a building or pest inspection might be a good idea.
Forget going to the bank, see a mortgage broker. A broker has way more options and the service is free. They will do all the loan shopping and paperwork for you. The standard procedure is to complete a 'pre-approval application' before you start looking at houses. This is a free service to establish what you are able to borrow. There is no point looking at property you can’t afford. A pre-approval establishes your eligibility for finance and the limit of what you can spend. It will also give you a good idea about what your repayments might be like.
As for me the agent finally found his place and answered my questions. By this stage I had given up on him and the apartment. He should have just left me thinking he was useless. For some reason he felt the need to prove it.
Evan Davis
