Understanding the Purchase Process

You've found a home you want to buy! What happens next? The process can sometimes seem confusing and drawn out, but it can easily be broken up into 5 easy steps.

1. Making an Offer

Your offer is usually made to the real estate agent who will submit your offer to the property owner for their consideration.

To help you know how much to offer you should do some research on properties that have sold recently within the same area. This should help give you a realistic expectation of the price. You will probably have to negotiate the price, but it's important to stick to your budget. On agreeing and accepting a price, the real estate agent will usually request a deposit be given, which is usually up to 10% of the property price.

Sort your finances before making an offer. Find out how much you can borrow with our Borrowing Power Calculator, or talk to an IMB home loan specialist about pre-approval of your home loan.

2. Contract of Sale

Now that you have agreed the price, the real estate agent will request a copy of the Contract of Sale be forwarded from the owner's solicitor to your solicitor. Your solicitor will review the contract to determine inclusions and council regulations concerning the property and are likely to recommend ordering a pest & building report.

3. Exchanging Contracts

So now your offer has been accepted, the house has been valued and checked, your loan has been approved and you have signed the Contract of Sale. Next your solicitor and the owners' solicitor will arrange for the contracts to be exchanged... This is the really exciting bit!

When you exchange contracts you will also set the date for the settlement and if you haven't already given a deposit, 10% of the total sale price is usually expected.

4. Cooling off Period

What happens if you change your mind after the contracts have been exchanged? It really depends how you bought your property. If you purchased by private sale you may find that there is a cooling off period after the contract exchange so see your solicitor for details. However if you purchased at Auction you will need to find a way to warm your feet again; that house is yours!

5. Settlement

A property settlement is usually agreed upon 42 days from the date of exchange of contract.

In the 42 days leading up to settlement the tip is to not go crazy with nerves as it's seriously an exciting time. Your Home Loan Specialist will liaise with your solicitor and the sale price of the home will be transferred upon settlement and bingo, the home is yours! Congratulations home owner! Now, you've got a whole month until your first IMB loan repayment is due!

To make an appointment or ask a question you can use our online enquiry form, call in to your local IMB or call 133 462.