Auction Tips:

• Attend other auctions (3-10)
• Have all checks done in advance – strata, building/pest inspection, solicitor review contract
• Price will very likely be under quoted by 10-20% so know your values
• Set your limit!
• Have finance approved prior to auction
• Conceal your true thoughts on the property
• Remember you can buy prior to auction

Auction Tricks:

• Get someone else to bid for you (but remember they need to register)
• Reduce the amount of each bid to slow process down
• Make a strong bid to unsettle the competition
• If you are the highest bidder, you usually get to be first to negotiate with seller (if price doesn’t hit reserve)
• Ask questions of the Auctioneer during Auction
• “Who made that bid?”
• “Is the property on the market?”
• Stand at the back of the room.

Legal Tips:

• It is recommended that you engage a solicitor/conveyancer prior to making an offer on a property. You need your conveyancer to advise and guide you with the process from a very early stage.
• Your conveyancer should check the contract of sale (COS) prior to you signing it.
• There are a range of checks and procedures that a Conveyancer undertakes that take much of the risk out of purchasing a property, ensure that you use their skills to your full advantage.
• Solicitor must hold a current practicing certificate and have professional indemnity insurance.
• Some solicitors specialise in conveyancing and property law.
• A conveyancer is not required to have any formal legal qualifications – though there is an impending legislation change regarding this.
• Using a recommendation is advisable.

Inspection Tips:

If possible make several visits to a property before deciding to buy it.

Take a note book and note identifying features. Here are a few potential structural problems to look out for:

• Bubbles or blisters on paintwork could indicate termite activity.
• Cracked walls could mean subsidence or that stumps need replacing.
• Mouldy walls, lifting tiles, peeling paint or pools or water in wet areas could mean excessive moisture.
• Fretting (crazed) brickwork could indicate major structural problems
• If there are large cracks, seek advice from a structural engineer.

Tips on How to Make an Offer:

1. Before making a formal offer, contact us at Scope immediately with the properties specifics – as some lenders policy may not cover some properties features – so make sure you make this step or you could waste a lot of time.

Take special care to mention if:

• The size of your unit is less than 50m2 (Excluding balconies and Car spaces).
• If your unit is not strata title.
• If the suburb that the property is located in is directly bordering or in the CBD.
• If the property has any major problems (eg. Termites, no kitchen).
• If the number of units in the block is more than 25.

2. Try to make your offer “subject to finance 10 days”. This will give you (and your lender) sufficient time to do a valuation & get formal approval in writing, before committing to purchasing. If the agent won’t allow 10 days, then you can:

• Sign the contract and hope the valuation comes in at the right price – this is risky – consult you mortgage consultant & your solicitor.
• Don’t sign the contract; fax the front page to us so we can order a valuation & gain formal approval (can take 10hrs to 6 working days), but be aware someone else could make an offer & “gazump” you during this time.

3. Formal approval is achieved.

4. The lender will forward you the loan documents or contact you to meet them at a branch (2-6 days). Your solicitor will complete all relevant searches on the property.

5. You fill out the documents with your solicitor and send back to the lender (2-6 days).

6. Your solicitors will arrange to meet the solicitors of the lender & seller for settlement of the property. We at Scope will contact all parties to make sure this happens smoothly.