Who is involved in a property purchase?
Buying a property is more complex than most other purchases you’ll ever make. Here are the different parties who may be involved in your home-buying process and how you can leverage their valuable experience and knowledge during your property purchase.
Finance broker
Brokers act as a liaison between you and the lender. They will find out about your finances and property goals and search for and negotiate a loan product that matches your needs. They will do the legwork and ensure your loan is processed as smoothly as possible and guide you throughout the process.
Real estate agent
Meeting a real estate agent is inevitable when purchasing a property unless you’re working with a private vendor.
Hired by the vendor, or seller, the real estate agent’s role is to advise the vendor on preparing the property for sale. This entails marketing and communicating about the property, as well as negotiating with potential buyers.
Insurance companies
A property purchase is a high-value purchase and long-term financial commitment making risk management vital. Insurance, including mortgage protection and property insurance, will help you avoid a significant financial burden should anything not go according to plan. Many finance brokers can also deal with insurance or will recommend an insurance broker who can.
Conveyancer
The legal aspect of a property purchase is taken care of 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 the transfer of ownership of the property has met the legal requirements in your state or territory.
Property valuer
Knowing the value of a property is essential in a loan application so that a valuer can play a massive role in the property buying process. A lender often engages an impartial valuer to ensure that the buyer and the lender will know what warrants a loan amount.
The valuer will look at the property for its potential resale value in order to determine how much to lend. They will also take into consideration the state of the property, the infrastructure and other factors such as its potential for rental income or development. The valuer will also consider the local market, including how much similar properties are selling for in the area. The lender will then use the valuation to set the loan amount and inform the buyer of what that amount is. This amount is often used to inform the amount the buyer is willing to pay for the property in order to ensure a fair deal.
Pest and property inspectors
Without the services of pest and building inspectors, a homebuyer’s worst nightmare – finding out the property you have bought requires costly renovations or pest treatment – may come true. Organizing 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. On the other hand, if the property is still your dream home but needs a little work, it can provide a valuable bargaining chip.
Property Purchase Lenders
If you need to borrow money to make your purchase, you will, whether it’s a central bank, a second-tier or non-major bank, a specialist lender can help with more difficult funding proposals.
Want to know more? Our team at Churchill Finance is happy to help! Contact us today!