HOW DOES IT WORK?
Step 4 - Due Diligence
Step 4: Due DiligenceNo matter if you are a First Home Buyer, a home Buyer buying another property, or a savvy Investor, knowledge and understanding of the Agreement that you are entering in to will give you peace of mind.
If you are a First Home Buyer, then you are most likely about to spend about 10x more money than you have ever spent on anything in your life. A daunting feat when you look at it like that, isn’t it? If you are a home buyer looking to buy your next home to live in, then you will probably have some very specific reasons behind this move, and you will want to get it right. Selling and buying costs a lot of money, with Agents Fees on the Selling side, and Stamp Duty costs on the Buying side. Most people spend an average of $50,000 to $70,000 on just these two costs. You don’t want to get it wrong and have to do it all over again in a couple of years. If you are an Investor, then you want your money to be working as hard as it can for you and/or achieving the tax benefits that you want to capitalize upon. The numbers have to stack up. The solution to all of these concerns for all buyers is to do a thorough due diligence BEFORE you buy. This will give you the peace of mind needed to move forward. We will look through the Section 32 (Vendors Statement) and make you aware of anything that appears untoward. However you must ALWAYS have a Solicitor or Conveyancer over look these forms before your purchase becomes “unconditional”. That means that it MUST be done PRIOR to an Auction. If you are purchasing by Private Sale, then you will have 3 Clear Business Days of a “Cooling Off Period” in which time you can have your Legal Representative look over the documents for you. If you do not have your own Legal Representative already selected, we can assist you with referring you to Conveyancer and/or Solicitors that can move quickly to assist you with this much needed due diligence. Several of the Solicitors/Conveyancers will review up to 3 Contracts of Sale at No Charge to you, providing that you utilitze their services through to Settlement once you do purchase. We do not receive any kick-backs or commissions from anyone that we refer business to. Inexperienced purchasers cannot see many of the hidden “surprises” that lurk in properties. Costly “extra’s” may include poor plumbing, stumping, termites and rot. All can exist and all can cost you thousands to rectify the problems you may only find AFTER you have purchased the property. Buyers Home Base Advocates have walked through thousands of properties and can often times determine if there is a problem – or not. If you are looking to build or further develop a site, then we will investigate where the easements lie, if there are any overlays, road works, etc on the horizon that might make it impossible for you to develop at a later date. When ever we feel that something is not 100% right for you, we will then recommend that you engage the services of a professional building / pest inspector. Again, we can make recommendations to these professionals if you do not have a preferred person yourself. The cost of engaging a Building/Pest Inspector should not cost you more than $800. If there is any concern, we feel that this is a good investment for peace of mind when spending a sum of money this large. |
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