Wednesday, October 4, 2023
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What You Need to Know Before Buying Property

Whether you are an ex-pat or a local looking for a new property to buy in your locality, know that you made the right choice. If you have been planning to buy property on this side of the world, now is the right time.

Though the economy was put on temporary life support, businesses and people are slowly bouncing back. Property prices either dropped or remained at a steady range.

If you ask a property buyer’s agent in your location about this, they will tell you that you now have a window of opportunity before the market kicks back again next year.

So, if you have the money to bag a property, now is the right time to seal the deal. But before you sign the transfer documents and contract of sale, get to know these crucial facts.

 1. Get Yourself a Real Estate Agent

No one knows the market more than an insider. When you plan to buy a property, make sure to work with a licensed real estate agent. You might also need the services of auction bidding experts in Melbourne. Property sellers can impose a ridiculously high price for their properties, and if you do not have expert knowledge about the real estate market and the trends, you might find yourself agreeing to the price they set.

A seasoned real estate agent knows when a property is over or underpriced. They know how to sell a house in negotiate terms that are favorable to you. They will make sure that you will get the property that you specified you would like to have.

2. Know the Applicable Real Estate and Property Laws

Yes, you have an agent working for you, but it is not an excuse for you to exercise diligence on your part. Diligence means you should do everything in your power to protect your interest. This means you should also research the current market trend, the reasonable price range for the property you want to buy, and your rights and obligations as a buyer.

This also means that you have to read all documents and contracts before you sign them. Even if these documents are in fine print, diligence requires that you understand them and exercise caution before affixing your signature. Failure to observe the required degree of diligence required by the circumstance could render all your future complaints moot and academic.

For example, the contract of sale stipulates that the owner requires 10% earnest money before he gives you the exclusive right to buy his property. Since you did not read the contract, you did not pay the required earnest money. As a result, the property was sold to a different buyer.

Now, you sue the seller for breach of contract for selling his property when you already agreed that you would buy it from him. Your case will not prosper because you did not exercise the due diligence required in the said situation – read and understand the contract. Any property buyer’s agent will tell you that you should also do your part as the buyer.

As the buyer engages an agent’s services, you enter a contract of agency with the said agent. Your agent will act as your legal representative, and he will be acting for and on your behalf. But this does not mean that you should leave everything to him.

Since you will be parting thousands of dollars, you need to protect your rights proactively. This is the only way you can get the best real estate property deals.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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