No man is an island when it comes to purchasing a property. The legal aspects governing the various stages of the process is in itself quite daunting. Shifting through the myriad of financial institutions and mortgage loan products available can keep a buyer occupied for weeks.
Therefore, the smart thing to do would be to admit that it is not possible to handle the process on one's own and carefully put together a group of professionals who can help ease the workload.
In Australia the process of purchasing a home can be handled with the co-operation of three or four people who are experts in their field. They are:
- a real estate agent
- a solicitor or settlement agent
- a mortgage broker
- an accountant or financial planner
Real Estate Agent to Make an Offer for a Property
Once a buyer has determined the location and the type of property that is required; it is a matter of searching for a suitable property. There are two ways to do this.
- The internet- There are many websites that list properties for sale. However, once a property is selected it will be necessary to contact the real estate agent under whose name the property is listed to proceed further.
- Newspapers- Very often the Saturday paper has a dedicated section for real estate. After perusing the homes for sale the buyer will once again have to contact the real estate professional to either view or make an offer for a property.
Therefore, the choice of a real estate professional does not rest with the buyer. It depends on which real estate agent the seller has listed the property with.
Solicitor or Settlement Agent to Finalize the Legal Aspects of the Purchase
Depending on the government requirements, the buyer has a choice of dealing with a solicitor or a settlement agent. In most cases it is cheaper to use a settlement agent than a solicitor. However, if the process is legally complicated, then it might be better to use a solicitor.
The choice of a settlement agent or solicitor is totally in the hands of the buyer. Real estate agents do have affiliations with solicitors and/or settlement agents and may recommend someone at the time of signing the contract to purchase. However, the buyer is not obligated to use the recommended person. It is therefore prudent to have done some research and chosen the solicitor or settlement agent who the buyer wishes to deal with.
Mortgage Broker to Handle the Finance Requirements
A qualified and experienced mortgage broker can help to sort through the variety of mortgage loan products available through a number of lenders. The personal and financial circumstances of individual buyers are quite different and a mortgage broker will be able to source the lender and product to match their specific requirements.
Using a mortgage broker will save buyers time by not having to sift through the products of the various lenders to find one that is suitable.
An Accountant or Financial Planner
Those buying a first home to live in may not necessarily require the services of an accountant or a financial planner. However, if the intention is to grow wealth through investment in real estate, then it would be useful to have an accountant or a financial planner involved right from the start.
An accountant will be able to steer the purchaser in the right direction with regard to taxation requirements and a financial planner will be able to put a proposal together for future use.
Pauline Mascarenhas - Born in Sri Lanka, moved to the UK and now lives in Western Australia. Mortgages and Finance are her area of expertise but loves travel, ...
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