1. How did you arrive at the price?
The advertised range is an agent's estimated price based on comparable sales. Each property is unique, i.e. not all two bedrooms are the same value, even if they are in the same building. Asking the agent how they came up with a price would provide insights into what units have recently sold and how they compare in size, aspect and condition. Click here to watch Baden's video 'Why are there price ranges on properties?'.
2. Can you explain how the Owners Corporation fees work?
It is essential to understand what Owners' Corporation fees include. OC fees cover building insurance, the common area's maintenance, cleaning, an onsite building manager, concierge, amenities, etc. Each year, a committee of owners is elected to represent all other owners, and they approve a budget - this is what impacts the cost of OC fees. Click here to watch Baden's video 'How much are Owners Corporation Fees?'.
3. What should I read in a Contract/Section 32?
When buying an apartment, you are not just buying an apartment; you are also buying into the building. A lot of people request a contract of sale, but don't know exactly what to look for. My top tip is to read the Owners' Corporation recent meeting minutes. This will often answer questions about future plans in the building and any known issues that the OC is aware of which may impact future value or fees.
4. Why are the owners selling?
It's great to get an understanding of why an owner is selling. If you can ascertain that they have already purchased, the owners may be more motivated or may have expectations/requirements for a shorter or longer settlement. Knowing the owner's situation will help during your negotiation on price.
5. How do I make an offer?
When you are ready to make an offer, give the agent a call to formalise your interest on a contract. The agent will need to know all the terms such as price, settlement date, finance terms and if the offer is subject to pest and building inspection. If your offer is subject to finance, be sure to have your pre-approval ready. This will make your offer stronger when the owner knows you have been pre-approved by the bank.
