Who are the different parties involved when purchasing a property?
Purchasing a property is a thrilling yet nerve-wracking experience, which is why it can be handy to surround yourself with a network of support and expertise. Here are the different parties who may be involved in your home-buying process and how you can use this valuable knowledge base to answer your questions.
. Real estate agent
Unless you’re working with a private vendor, meeting a real estate agent is inevitable when it comes to purchasing a property. Hired by the vendor, or seller, their role is to market and communicate about the property, advise on preparing it for sale and negotiate with potential buyers.
. Buyer’s Agent
Buyer's agents (or buyers advocates) are licensed professionals that specialise in searching, evaluating and negotiating the purchase of a property on behalf of the buyer. A lot of our clients use the services of Buyer’s Agents to negotiate with Listing Agents and they may sometime find property off-market.
. Insurance companies
Risk management is vital in such a high-value purchase and long-term financial commitment. Insurance, including mortgage protection and property insurance, will help you avoid being hit with a major financial burden should anything not go according to plan. Many finance brokers can deal with insurance as well or will recommend an insurance broker who can. It is usually a settlement condition that your property is insured and evidence (certificate of currency) needs to be provided to the lender prior to settlement booking.
. Conveyancer
The legal aspect of a property purchase is taken care by a licensed and qualified conveyancer. If they are a solicitor, they can also provide legal advice. Their role is to prepare the documents to ensure that transfer of ownership of the property has met the legal requirements in your state or territory. Conveyancers are a crucial part of your transaction and it pays to do your research before appointing one, make sure they come recommended or that they have good Google reviews.
. Valuer
Knowing the value of a property is a vital factor in a loan application, so a valuer can play a huge role in the home-buying process. A lender will often engage an impartial valuer to ensure that the buyer and the lender will know what loan amount may be warranted. The value is based on the property and location, as well as the current market.
. Pest and building inspectors
Without the services of pest and building inspectors, a homebuyer’s worst nightmare – finding out the property they have bought requires costly renovations or pest treatment – may come true. Organising a pre-purchase inspection is essential. If the property requires structural, wiring or repair work, these inspections can stop you from making a costly mistake or, if the property is still your dream home but just needs a little work, can provide a valuable bargaining chip.
. Lenders
If you need money to make your purchase, you will need a lender, whether it’s a major bank, a second-tier or non-major, or a specialist lender for more difficult funding proposals.
. Finance broker
Brokers act as a liaison between you and the lender. They will find out about your finances and your property goals, and search for and negotiate a loan product that matches your needs. Not only will they do the legwork and ensure your loan is processed as smoothly as possible, but they are there to guide you throughout the entire process.
For quality service and support throughout your home-buying experience, ensure your professionals are accredited with peak national industry bodies such as the MFAA. MFAA accredited finance brokers, like us, are held to the highest industry qualifications, experience and ethical standards.
Through the years, we have build a network of like-minded professionals who have their clients best interests at heart. Do not hesitate to contact us if you’d like a warm introduction to one of our trusted professionals.
Get ready for your property purchase and make sure you have the right people to help you along the way.