SOME HELPFUL TERMINOLOGY FOR YOU TO UNDERSTAND THE CONVEYANCING PROCESS A BIT BETTER…
Appraisal: An estimate of a property’s market value based on comparable sales and agent opinion.
Valuation: A formal, evidence-based assessment of a property’s value undertaken by a qualified valuer.
Bank Valuation: An estimate of a property’s market value that is generally likely to be more conservative than actual market value.
Market Value: An opinion of what a property would sell for in a competitive market.
Market Price: What a willing, bank approved buyer will pay to a willing seller in an arm’s length transaction.
Offer: The price a willing purchaser would like to buy a property for.
Counter Offer: The price a willing homeowner suggests the prospective purchaser should increase to.
Private Treaty: A sale where the price is negotiated directly between the parties or their agents.
Auction: A sale, usually in public, by an auctioneer where the property is sold to the highest bidder – subject to reserve.
Open Listing: The responsibility for selling a property is shared by multiple agents. Commission is paid only to the agent that finds the buyer, but no single agent is accountable for a result.
Exclusive Listing: The responsibility for selling a property is granted to one agent. Commission is paid only when the agent finds the buyer, and the agent is fully accountable for the result.
PRE-SETTLEMENT INSPECTIONS
You usually have the right to a pre-settlement inspection usually on the day before or day of settlement. This is not compulsory but it is highly recommended.
You can usually organise this inspection directly with the real estate agent.
You may wish to check that the property is in the same condition as when you signed the Contract. You may also wish to check that the seller has rectified any defects to the property that may have been agreed upon. This inspection is your last chance to inspect the property and deal with any issues before the financial settlement takes place.