Path Real Estate
0405 777 284

FAQs

Providing the best Real Estate services
Who is eligible to receive the first home owner grant?

To qualify for the first home owner grant you must meet the following criteria: each applicant is a person and not a company or trust, the applicant is a permanent resident or Australian citizen.  Each applicant must be 18 years of age or above. All applicants and / or their spouse / de facto, have not owned a residential property, jointly or separately in any state or territory of Australia before July 2000.  Each applicant must have entered into a contract for the purchase of a home and the total value of the home does not exceed the cap amount for eligible transactions (different in each state).  Must also be the first time an applicant/spouse or defacto will receive the grant and that at least one applicant will occupy the home as their principal place of residence for a continuous period of 6 months commencing within 12 months of purchase.

You don’t need a pest inspection but it is recommended that you get one to ensure the property you are buying has no major issues as this could save you a lot of money in the future.

Closing (also referred to as completion or settlement) is the final step in executing a real estate transaction. The closing date is set during the negotiation phase, and is usually several weeks after the offer is formally accepted. On the closing date, the ownership of the property is transferred to the buyer.

To determine the right neighbourhood for you, consider your pace of life – are you young and is the proximity to friends and entertainment important or are you looking for a quieter suburb.  If you have family plans consider schools, transport and amenities and safety of suburb.  Consider where you work and the daily commute.

It is important that you understand these terms before your bid at an auction: Bidders guide, Inspection, Vendor and Dummy Bids, Rises and Advances, Reserve, On the Market and Passed In.

On auction day if you are wanting to bid, you must register in bidder’s record and you will receive a bidder’s number that you will use when bidding. 

The auctioneer will outline all rules before the bidding begins, including their obligation to refuse bids after the hammer falls, to arbitrate bid disputes and also to refuse bids that come from those who have not registered for the auction.  There may be more specifics depending on where the auction takes place, so check the rulings and listen carefully to the auctioneer.  If you are the successful bidder and the property sells to you, you are required to sign the contract immediately and pay a 10% deposit.  There is no cooling off period if you buy at auction.

Doing due diligence on the property market gives you important understanding of where you can buy, and how much it will cost. 

  • Path Open Market report provides a regional snapshot of the property market, and your Local Path office for a local market report. 
  • Talk to your Path Real estate agent as they have a depth of knowledge on the local market.

Website portals such as pathrealestate.com.au or realestate.com.au are excellent resources along with regional and local newspapers. Also contact your local Path real estate agent as they are experts in the local area and may know other properties that are up for sale.

Stamp duty is a charge which is applied by state governments in Australia and is in relation to the transfer of land or property. The State Government charges may vary depending on the purpose of the property purchased.

The First Home Owner Grant (scheme) was established to assist eligible first home owners to purchase a new home or build their home by offering a grant. The grant amount is determined by the date of the eligible transaction and each state has different rules and regulations.

Talk to the experts at Path Home Loans, they can help assess your current earning and assets and develop a plan with you.

  • Deposit – usually 10-20% of the home’s overall cost
  • Stamp Duty – differs in each state
  • Lenders mortgage insurance if you borrow more than 80% of the property purchase price 
  • Building insurance 
  • Legal help such as lawyers or conveyancers
  • Building, pest and strata inspections 
  • Council rates and strata fees 
  • Moving costs

There are 4 main ways to buy real estate in Australia 

  • Private treaty – when the vendor, or home owner sets the price they would like to sell their property for and their real estate agent negotiates individually with prospective buyers to achieve a sale as close to this price as possible.
  • Auction – which is a public sale conducted by a licenced auctioneer.  Properties are offered up for bid and if the reserve price is reached the property is sold to the highest bidder 
  • Tender and Expression of Interest are processes wherein you submit a single offer, usually accompanied by a 5 or 10 per cent deposit, and it is accepted or rejected by the vendor.
  • Can you show me a recent property sales report to show what the house is worth?
  • Why is the vendor selling?
  • How long has the property been on the market?
  • Are there any known issues with the property, land or neighbours’ properties?
  • Exactly what is included in the sale?
  • How long have the owners lived there?
  • Is the property listed? If so, what grade is it? And is it in a conservation area?
  • How much are council rates / strata fees?

Enlisting the help of a trusted real estate agency can help you navigate the often-tricky world of residential real estate. With offices across most of Australia’s major cities, towns and suburbs, your local Path real estate agent is perfectly-placed to provide you with advice and assistance relevant to your local real estate market.

Your local Path real estate agent can also help you through every stage of the property buying process, including finding a property within your price range, organising finance, reports and searches, conveyancing and in some cases, even helping to connect your utilities.

  1. Own a home? Get an appraisal as this is a great way to find out how much equity you already have.  Your local Path agent can give you a free property appraisal to help you here.
  2. Contact a Path Home Loans specialist to discuss your home buying plans and borrowing capacity
  3. Create a budget and save deposit
  4. Choose a home loan and apply for pre-approval
  5. Research property market and neighbourhoods and download our Free Open Market report
  6. Finalise property must-haves
  7. Start house hunt
  8. Lawyer / conveyancer to review contract
  9. Get a building inspection
  10. Make offer or bid at auction
  11. Sign contract and pay deposit
  12. Arrange insurance
  13. Process First Home Owner Grant
  14. Complete settlement and move in
What is an auction agency agreement?

An auction agency agreement is effectively the same as an exclusive agency agreement, except that it specifically applies to a property you are attempting to sell at auction rather than privately.

If the property reaches a sale at the auction, you will be required to pay the real estate agent a commission.

A sole agency agreement is similar to an exclusive listing agreement, to the extent that you give rights to one real estate agent to sell the property whilst maintaining the ability to find a buyer yourself.

However, in this situation no commission is payable to the agent if you are able to find a buyer who they did not introduce you to.

A sales agency agreement is a document written to protect your rights.  It includes details of the real estate agent who you have assigned to sell your property.  It states what they promise to provide for you, along with an estimated sale amount or price range.

This arrangement outlines the amount of fees or commission payable by you for the real estate agent’s services. A commission is usually only due when the sale of the property is completed.

The extent of the real estate agent’s authority to act on your behalf – such as to exchange or make changes on a sale contract – is also stipulated within this document.

You have the right to negotiate with the real estate agent about the terms and conditions of the agreement and to ask for any legally-permitted changes to be made.

The sales agency agreement usually involves a fixed term, which is a specific amount of time the sales agency agreement cannot be ceased unless accepted by both parties. An open-ended agreement with no fixed term must indicate an alternative method for being brought to an end.

If you are unsure about how to end an agreement you should seek legal advice.

In the event that you are unhappy with any of the real estate agent’s services, it is essential to officially bring the sales agency agreement to a close before signing up with a new organisation – otherwise both might be able to charge you a commission when the property is sold.

It is not a legal requirement to use an agent to sell your property – you may elect to undertake the process yourself.

However, there are many reasons why people generally engage the services of a professional to ensure the best price.

Aside from the obvious expertise in marketing, negotiation and selling that an agent brings, most buyers also prefer not to deal directly with the seller. If buyers know you are not paying for an agent, they will usually expect to see the house price reduced accordingly.

In the end, selling a property on your own might lead to a lot of work and pressure, without actually saving any money or maximising the end sale value.

If you sell the property yourself, whether or not you have to pay the agent a commission will depend entirely on the agreement you signed with them.

In many cases you may still need to pay the commission as, for example, it is likely that the promotional activities undertaken by the agent exposed the buyer to the property on the market.

You should talk to your agent about this issue, or alternatively take a copy of the agreement to your solicitor or conveyancer for advice.

You are able to sell your property while it is being leased, but any potential purchaser must be told there is a current lease in place and that the property will not be sold with vacant possession.

The tenant has the right to occupy the residence until the end of the lease term, unless both parties negotiate and agree to terminate the existing agreement.

In some cases, the fact your property has reliable tenants in place may actually be appealing to prospective investors.

The term ‘overcapitalised’ refers to a situation where you have spent more money on your property than you will recoup from the sale price.

While it is likely that any work you have done – such as landscaping or interior construction – will add value to the property, there is no guarantee that the full amount spent on these improvements will be seen in the eventual price of sale.

An open listing arrangement is a situation whereby you have gained the services of a number of different agents who will list your property and attempt to find a buyer for you.

You are only expected to pay a commission to the successful agent when a buyer has been found.

The benefit of this type of listing is that your property may be advertised across a wider spectrum of potential buyers, but the downside is that you may not receive the same individual attention as you would by employing the services of only one agent.

Once your home is placed on the market, the length of time it takes to sell depends on a number of circumstances.

The biggest factor is how much you want to make for the property, with auction generally proving to be the most effective way to sell it for the best price in the shortest possible timeframe.

An auction can secure you a quick sale because buyers are compelled to act on the day or risk losing the property to somebody else.

Path agent can tell you the approximate number of days properties similar to yours have spent on the market before selling.

Decluttering involves removing personal items as much as possible prior to an open house, in order to help the buyer imagine themselves living in the property.

A first impression often lasts and excessive belongings can make a home seem smaller, darker and less airy than it really is.

Modern homes and decor tastes also tend to lean towards a more sparse presentation, while too much clutter can leave buyers with the sense that finding storage space might be problematic.

Getting a buyer to picture themselves living in the property – sometimes referred to as ‘mentally moving in’ – is one of the most effective ways to generate serious interest.

For this to be achieved, it is essential that they feel relaxed and unhurried. Buyers do not wish to intrude on the current owner’s space, so your presence can sometimes act as a deterrent for them to stay longer and continue to consider the property carefully.

  • An agent’s job at an open house inspection is to listen closely and observe attendees to gauge buyer interest and motivation.

    By engaging in conversation, the agent can learn more about a potential buyer’s specific circumstances and requirements. This helps the agent to discuss the aspects of the property relevant to the buyer.

    At the same time, buyers may need to view the property without pressure and talk about it with someone they have brought along. A good agent will be aware of this and only engage in conversation at appropriate moments.

With an exclusive agency agreement, you give only one agent the rights to sell your property.

This may entitle the agent to be paid a commission if the property is sold during the fixed term of the agreement, even if you or another agent were responsible for the sale.

An exclusive listing arrangement is most commonly used for the sale of residential properties.

  • Real estate agents are qualified professionals that can help you sell your property.  They are experts in the local and wider property market and provide informed property appraisals.  They help guide sellers on the best method of sale and ensure properties are actively promoted and marketed to reach the maximum number of buyers.  Real estate agents will assist in the negotiation of property sales and ensure this is done with the utmost confidentiality.  Real estate agents work for the property seller and are focused on selling it for the most amount of money.