Each year at the end of October we write a column reminding our readers that there is only about six weeks left until the end of the working year.
Conveyancing and law firms will shut up shop on or about December 20, 2024 and reopen in the second or third week of January.
Usually this means that settlements of property transactions cannot take place during this closure period so if you are looking to buy or sell a property and settle the transaction prior to Christmas now is the time to act because time is running out.
The rapid approach of Christmas coincides with spring which often sees a glut of properties come onto the market as the weather warms up, yards and gardens start to look fantastic, and people are ready to hit the open home circuit.
Here are some tips if you are thinking about buying or selling in the next few weeks:
Selling:
1. Talk to your real estate agent about small changes you can make to your property that might make a difference during inspections. This might be fixing minor issues like loose door handles, cracked windows, or patching up a hole in the wall that you have been meaning to get to for some time. Neat and tidy properties that present well attract the most offers as people’s first impression of your property is what they see when they walk through the front door.
2. Do not tie yourself to a particular sale price. Your real estate agent has probably advised you of a range in which the price you receive for your property is likely to fall. It is unwise to mentally commit to the top end of the range and have that inform your decision making in terms of your next step, such as buying a new property. If you are selling to buy, you need to plan ahead by factoring in a sale price at the low end of the range as well as the top end of the range and speaking with your mortgage broker about how your sale price will affect how much money you can borrow and in turn the price you can afford to pay for your next property.
3. Think about the logistics of settlement. On the settlement day, you need to give the property to your buyer empty (unless it is an investment property that you have a tenant in). This means not only removing all of your furniture and personal belongings but other moveable items such as old timber down the side of the house, broken bricks under the house, used tins of paint and stuff you haven’t seen for years.
Buying:
1. Your first step is to make sure you have spoken with your mortgage broker and have a preapproval in place so you understand how much money you are able to borrow which will inform the maximum amount you can offer on a property you want to buy. It is no secret that interest rates increased rapidly in 2022 and there is still a hangover effect of that because people cannot borrow as much money as they used to. Make sure you have spoken to your mortgage broker before you hit the open home circuit.
2. When you go to an open home or a private inspection, look closely at the property. While you will have an opportunity to get a pest and building report, you need to make sure you are aware of any obvious defects or issues before you formulate your offer. We often say to clients if somethings comes up in a pest and building report that would have been obvious to you when you formulated your offer it is going to be difficult to negotiate with the seller to rectify it or reduce the price.
3. Have a chat to your solicitor or conveyancer before you start going to open homes, particularly if you are a first home buyer. Buying a property can move at a rapid pace. One minute you are attending an open home and all of a sudden within 24 to 48 hours you have an offer accepted and a real estate agent is asking you to pay a deposit and sign a contract. It is important you understand the process of purchasing property in New South Wales so that you are not caught unawares if you make an offer and it is accepted. This is particularly important because law firms and conveyancing firms are not open on weekends when most deals are done to sell property at Saturday or Sunday open homes. Knowing what to expect before you start inspecting properties means you can act quickly to secure a property if you need to.
If you have any questions about the conveyancing process you are welcome to contact our office on 02 4704 9991 and speak to one of our staff who will talk you through how things work free of charge.
Daniel McKinnon
Since graduating with two degrees in Law and Commerce from the University of Wollongong, Daniel’s spent over ten years solving a wide range of legal problems for the people of Western Sydney.