What is Private Treaty?
This is a standard residential property transaction. This is when the vendor, or home owner sets the price they would like to sell their property for and their real estate agent negotiates individual with the purchaser to achieve a sale as close this the asking price as possible.
What is an Auction?
An Auction is a public sale conducted by a licenced auctioneer. There is a reserve price, which is essentially the minimum the home will sell for, if bids exceeds the reserve and you are the highest bidder, you have to sign the Contract right there, you then pay the deposit (again right there and then) and you are then bound to the Contract.
Buying off the plan, what does that mean?
When you purchase a property off the plan, you are purchasing something that is not been built. You exchange Contracts, pay the deposit and the vendor will built the property. The Contract will have the time limits that the vendor has to construct the property by. This is known as the sunset date.
Are there any other costs I should be aware about?
- Stamp duty- unless under the Revenue NSW thresholds.
- Bank fees- application fees, valuations fee, registration fees and lender mortgage insurance.
- Legal Fees- reports such as pest, building and strata.
- Adjustment to be made at settlement- these are on top of the purchase price.These include council and water rates, land tax and strata levies.
Written by Megan Johsnon.