As the second month of Spring draws to an end, more and more properties are going on the market with vendors anxious to secure a buyer and settle before Christmas. Many people selling naturally also means that there are a lot of purchasers in the market, with competition to get property becoming more fierce. This competition is leading to people offering to pay more than what they would normally pay for a property, and then entering into a ‘race’ with other potential buyers to exchange.
A lot of our clients are anxious to exchange urgently, so as to avoid missing out on their ‘dream home’. Sometimes this also means that they are wanting to skip obtaining important inspection reports before they exchange, all in fear that if they wait for the reports, someone else will exchange before them. It is important to remember that it is not your dream home if after you have bought it you discover that it is riddled with termites. Add to this paying a premium price for the property, and suddenly you might find that all you have is a very expensive piece of land or a house that is going to require a lot of costly repairs.
We advise our clients that they should always obtain pest, building and any other reports (or a strata inspection report in the case of a strata property) before exchange. Alternatively, you can exchange with a sufficient cooling off period to allow you the time to get these reports, but be aware that if you are not happy with the content of the reports and you decide not to proceed, you will lose your 0.25% cooling off deposit.
Be informed about the condition of the property you are buying!
For more information contact our Conveyancing Team.