What are some of the pitfalls of buying and how do I avoid them?

Doing your homework is one of the most important aspects of any property transaction.

It can be as simple as researching property prices and market conditions, reading and understanding a contract before you sign it, seeking independent legal advice, organising financial assistance, and making a list of exactly what you’re looking for.

Although it might seem obvious, a common trap is entering the buying process without having a clear idea of what you’re looking for. Knowing what you want can narrow down the search.

Ask yourself a few simple questions: How many bedrooms and bathrooms do I need? Do I need to be close to schools and shops? Do I need a backyard or want a garden? Is there adequate public transport nearby?

Another common trap is beginning the search without knowing exactly how much you can borrow, what the repayments will be, or whether you can afford the deposit required.

If you require financial assistance, it’s important to talk to your bank or financial institution before you start looking around. They’ll be able to tell you what capacity you have to finance a loan. They may also be able to pre-approve a loan for you so that you may enter into negotiations without delay.

In the first stages of house-hunting, buyers should make themselves familiar with the REIQ/Queensland Law Society Contract of Sale. It is important to read through and understand the terms and conditions set out in the contract and to seek independent legal advice.

Another common trap for buyers is entering into verbal agreements. If you’re serious about a property you should be prepared to make an offer, and negotiate a price, on a contract.

Verbal agreements have no legal standing and buyers often find that the agreements they reach verbally no longer stand.

So, after having done your homework, found the perfect property and signed on the dotted line, the property is yours. It’s now time to conduct building and pest inspections.

Buyers can make their Contract of Sale subject to finance, as well as subject to a building and pest inspection.

Should either of the inspections prove unsatisfactory, you will be able to walk away from the deal if you choose.

Under Queensland law, there is a five-business day cooling off period for buyers of residential property.