Buyer's Tips

1. If you use a buyer's advocate, make sure that he or she is a licensed estate agent. A buyer's advocate may be engaged to source properties, bid at auction and generally represent you throughout the buying process. You will pay a fee or commission for this service.
2. Before making an offer on a property or bidding at an auction, have a solicitor or conveyancer carefully check the vendor's statement for you. You should also consider getting a building condition report from a qualified building inspector.
3. Obtain independent legal advice before buying a unit, flat or apartment to find out about the advantages and disadvantages of holding a title under the different property schemes.
4. When buying a unit, apartment or flat, you will probably be living in close proximity to others. This means certain rights and responsibilities apply. Be aware that this can also mean additional noise and other possible inconveniences.
5. If buying 'off the plan', get a firm date from the developer of when the property will be finished. Seek professional legal advice before signing a contract with a developer.
6. By doing research and knowing the market in a particular area, you will be a better judge of property sales prices. A reputable real estate industry association may also provide information on the market and property prices in your area.
7. If the property has been recently renovated, or if extensions have been made, call the local council as they will be able to check that relevant planning or building permits were obtained. Any illegal alterations may become the responsibility of the buyer once the contract has been signed.
8. Be cautious of any property inspection report offered by the agent or the seller. The independence of a report is only guaranteed if it is obtained specifically by and for the buyer.
9. The fee for a professional inspection service is small compared with the cost of buying a property that requires extensive unforeseen repairs. Even if major faults are not found, you can use minor faults discovered in the pre-purchase inspection as the basis for an ongoing maintenance program, if you decide to buy the property.
10. Do not sign a contract for an owner-built property before checking the property very carefully. If there is a query regarding defective or incomplete work, call Building Advice & Conciliation Victoria (BACV) on 1300 55 75 59 before signing the contract.
11. The decision on how much to offer is a difficult one to make. You have to decide whether to make your best upfront or offer a lower price and be prepared to negotiate up. Note that in the case of multiple offers, the seller may decide to accept another offer, without giving you the opportunity to increase yours. If you are not confident negotiating with the agent, you may prefer to engage a solicitor or buyer's advocate to do your bargaining for you. You can expect to be charged a fee for this service.
12. You should insert into the contract a date by which your offer will lapse. This way you will be notified in a timely manner as to whether or not your offer has been accepted.
13. A copy of the auction rules and information statement, and any additional conditions must be made available for inspection prior to the commencement of the auction.
14. Before the bidding starts, a prospective buyer should have:
    • decided on a definite upper limit, based on a firm offer of finance from a lender
    • arranged a property inspection, preferably by a professional building inspector
    • checked all legal documentation including the vendor's statement and contract of sale, preferably through a solictor or conveyancer
    • organised a cheque to pay the deposit, if successful
    • organised someone to bid on his or her behalf, if desired
    • understood that the contract is unconditional, that is, it is not subject to finance. If successful, there will be no right to withdraw from the contract and no cooling off period.
15. Anyone at a public auction is permitted to ask the auctioneer in good faith a reasonable number of questions about the property, the contract or the rules and conduct of the auction. A bidder may also ask the auctioneer to indicate who made a bid.
16. In order to bid successfully at an auction, a bidder should:
    • be clear about his or her bidding limit
    • bid confidently
    • ask any questions of the auctioneer including an indication of who made a bid.
17. Do not necessarily wait until after the 'half time' break before making a bid in the belief that any bid before that is a waste of time. The 'half time' break allows the agent to refer the bid to the seller and usually means the reserve price has been reached. However, this 'referral' does not always happen. The seller may have advised the auctioneer of the reserve price prior to bidding and does not need to consult further with the auctioneer. The is known as a non-referral auction.

These tips were reproduced with the kind permission of Consumer Affairs Victoria.