Tips for Buyers
The thrill of finding the right property, in the right
area, at the right price, is something special. It's also
one of the biggest financial decisions you will make during
your lifetime. Residential property can be a very rewarding
investment over the long term, so it is important to understand
your rights and how to exercise them. It is also important
to spend time working out what you need and what you can
afford before you commit to the purchase.
Choosing a Location
Before you set out to buy a home, you will need to decide
where you want to buy, and what size and type of home you
want. These factors will affect the price of the home, which
in turn will affect the amount of deposit you will need.
Make a list of the locations you would like to consider.
Don't forget about the facilities available close by such
as schools, shops, public transport, parks, childcare and
recreation centres plus your travel time to and from your
place of employment.
Methods of Sale
There are generally two methods of sale commonly used in
South Australia, they being Private Treaty and Auction.
A private treaty sale is when a house is offered for sale
at a negotiated price. The normal practice is for the vendor
to set a price, and you negotiate with them until a mutually
agreeable price is reached. Unlike at auction, the potential
buyers do not know what others may be offering for the property.
Private treaty sales are the most common method of sale
used in South Australia.
The auction method of sale is different from a private
treaty sale in that the vendor will establish a reserve
price that they are prepared to accept for the property.
The reserve price will not be disclosed to you or the other
bidders at auction. Ultimately, the bidders determine the
price they are prepared to pay for the property.
If bidding does not reach the reserve price, the vendor
may decide not to sell the property. The vendor may then
choose to negotiate a sale with any of the bidders or choose
to put their home up for private treaty sale on the open
If you hope to purchase a property at an auction in South
Australia, you must be registered as a bidder. You do this
by providing the agent conducting the auction with your
details. You will need to show proof of your identity when
you register. If you are bidding on behalf of someone else
you are also required to provide information about that
person and present evidence of that person's identity and
a copy of a document signed by that person authorising you
to bid on their behalf.
Negotiating the Purchase
It can be difficult to work out how much to offer.
Do you make your best offer upfront, or offer a lower price
and be prepared to negotiate? If there are several prospective
buyers who want to make offers, the vendor may decide to
accept another offer, without giving you the chance to increase
yours. If you are not confident negotiating with the selling
agent, you may want to get a solicitor, conveyance or buyer's
advocate to negotiate for you. Most will charge you a fee
for this service.
See our Useful Links page
for more information on purchasing a residential property
in South Australia.