Need to know when Buying

We often hear “but the agent didn’t listen to me!” While this may be true of some agents, your Harcourts sales consultant is trained to listen – not to talk.

The dangers of offering too low

Once they find the property they wish to purchase many buyers are tempted to “start low” with their offer.

We understand, but would not be giving you complete service if we did not warn you of what can happen.

  • 1. The seller could feel insulted, and become difficult to negotiate with from then on.
  • 2. The seller may think you are a bargain hunter “having a go” without serious intention to buy and dismiss your offer altogether.

If you are serious about purchasing the property it is wise to make a genuine offer that reflects your serious intentions and appreciation of the true value of the seller’s home.

Common conditions of sale

Along with the standard terms of the contract both buyers and sellers are able to insert further terms and conditions of sale.

When writing in any special condition the key parts are who is going to do it; what are they going to do; when are they going to do it by; what standards will apply; what happens if it is not satisfied and who can waive it.

Once an inserted condition has been satisfied notice will be provided to the other party usually by the solicitors involved.

A condition can be either satisfied or waived. If you have inserted a condition but it has not been met by the required date you can choose to waive that condition. If the condition is neither satisfied nor waived then the agreement will be terminated and any deposit paid by you shall be immediately refunded.

Some common conditions of sale are:

  • Conditional on sale of purchaser’s property
  • Conditional on sale of purchaser’s property becoming unconditional
  • Builders report, Lim (Land Information Memorandum) report.

Inserting these clauses allows you to sell your property before purchasing. Use the appropriate clause to allow you time to sell your property or for an existing contract of sale to become unconditional in all respects.

Expiry of Prior Agreement / Back up Clause

Insert this clause in your contract when the property you are making an offer on is already under contract for sale subject to a conditional agreement.

By securing a signed back up offer this means that if the first conditional contract on the property does not go ahead the seller cannot grant any extensions to the first buyer and your contract will take immediate effect.

If you have a back up offer on a property it is important that you take that into consideration when looking at other properties so that you don’t enter into two different contracts.

  • Conditional upon Finance
  • Conditional upon obtaining Solicitor’s Approval of the Contract
  • Conditional upon obtaining a Builder’s Report

Each of these conditions should be clearly worded and the dates for confirmation made clear.